You, Inc.
As Joni Mitchell once said, “Let’s face it. We’re all on our own." The “future of work” as a topic is not new. Google that phrase, and you’ll find 520 million links in just over 1.1 seconds. What is new about how we will work in the future is that it’s already here. We just haven't recognized it yet. According to Tom Friedman in his book Thank You for Being Late, 2007 was a pivotal year for the new sharing economy. While many of us were discussing the meaning of the “The Sopranos” final episode, big tech companies were quietly changing the world and our connections to one another.
The iPhone, Facebook, Twitter and Airbnb all launched in 2007. IBM introduced A.I. (artificial intelligence) to a much wider audience in 2007 via Watson, the first computer capable of answering questions in natural language. What’s most revolutionary to me about these companies is that the majority of them do not own any inventory - that's new. They built billion dollar evaluations solely on creative ideas (or I.P./intellectual property) and customer data. Let's examine some of the intended and unintended consequences.
News flash: Your current employer does not want to pay for your health benefits, 401k or retirement plan. In fact, they would rather not even pay you a regular salary. The unspoken truth here is that we are moving more quickly than we realize towards a freelance economy where the majority of workers will be “independent contractors” hired to do a specific task for a set period of time. The good news is that these “at will” employees will be free to work for different employers and run their own business(es) at the same time. According to Forbes, over 44% of Millennials already consider themselves entrepreneurs and supplement their incomes with side businesses in addition to their regular full- time jobs. Companies are reorganizing, preferring to have only a “few essential” employees on their payroll with the majority of work being done by this new independent-contractor workforce, commonly being referred to as the Freelance (or Gig) Economy.
Think this won't happen in your lifetime? Well, think again. Just look at the dramatic rise of WeWork and the other temporary workspaces that house this generation of independent contractors. The new freelance economy (Uber, TaskRabbit, Rent the Runway, and Fiverr) is more evidence that this change is happening rapidly. The lifestyle altering effects of A.I. is more imminent than many believe, and needless to say, it’s accelerating the rate of change for professionals and corporate structures faster than corporate America can adapt to it. Recently, Macy’s and JCPenney announced that they will implement A.I. to replace some of their buying and planning functions. Remember, Watson does not need health insurance, unless he gets a screw loose!
I’m frequently asked, "What happens to people’s income when A.I. takes over the majority of the workforce?" The short answer: the new freelance economy is providing a smooth transition until a universal basic income (UBI) becomes a reality. Rapid change is disconcerting to many, and the reaction to it is often fear. Let's face it, fear hampers our ability to change. Maybe the freelance economy will give us more time to read thoughtful books (and blogs) and getting to the most important tasks on our lists. The key is to learn how to accept change and acknowledge that it’s a part of life.