What are the risks of process automation?

Potential Job Losses

One of the most immediate perceived risks of process automation is the potential for job losses. There's a prevalent fear that machines and software will replace human employees, triggering widespread unemployment.

This fear isn't entirely unfounded. Automation technology is improving rapidly, and a great deal of jobs, particularly those that involve routine manual or cognitive tasks, can be automated. However, it's worth noting that new technologies also tend to create new job opportunities, often requiring more advanced skills.

Security Concerns

Automation can also raise serious security concerns. Many automated systems are connected to the internet and, therefore, vulnerable to cyber-attacks. If a system controlling a critical process is hacked, it can have severe consequences.

Even without external threats, automated systems can fail or malfunction, potentially causing extensive damage. It's therefore crucial to have robust security measures and backup plans in place to mitigate these risks.

Reduced Human Skills

Another potential risk of automation is that it can lead to a decline in human skills. If a process has been automated and humans are no longer involved in its operation, those individuals may lose the skills they used to perform that task which threatens the preservation of human knowledge and expertise.

In some cases, this may not be an important concern. But in others, especially where automated systems might fail or in industries where human touch and judgement are prized, these losses can be highly significant.

High Initial Costs

Implementing automation in a business is not a small feat neither is it cheap. It requires significant upfront investment in sophisticated software, hardware and the expertise to set them up. For small to medium-sized enterprises (SMEs), these costs can be a major barrier.

It's important to consider the potential return on investment over the longer term. While automated systems can certainly save time and resources in the long run, the high initial costs are a significant risk that cannot be ignored.