Automation is changing organisations from the top down and a new management layer is replacing supervisors and line managers with machines. Is your next boos a bot?
Hosts: Matt Armitage & Richard Bradbury
Produced: Richard Bradbury for BFM89.9
Episode Sources
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https://www.theguardian.com/commentisfree/2021/nov/18/portugal-bosses-work-hours-right-to-disconnect
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Rich:My name is rich Bradbury, and this is mansplained in the near future.
Rich:A robot could be chairing your meetings, setting your tasks
Rich:and appraising your performance.
Rich:Automation is starting to change organizations from the top down.
Rich:Meet the new boss, more matte than the old boss.
Matt:Hi man.
Matt:How are you doing?
Matt:I'm good.
Matt:Thank you.
Matt:Uh, you know, that's probably the nicest intro that you've done for me.
Matt:So thank you for that.
Matt:Um, I've long been told that my management style is inhuman and now
Matt:it seems that the world has caught up with me a couple of years ago.
Matt:You know, we covered a story about an Amazon packing
Matt:robot that needed people to.
Matt:Packages 24 7, uh, flipping the narrative where machines assist humans
Matt:and humans assisted the machines.
Matt:Now it's by no means the only example, but it is one of the more extreme,
Matt:you know, uh, there are things where that we're, we're quite used to
Matt:where you send your car for service.
Matt:For example, the mechanic now just plugs a machine in, it runs a diagnostic check.
Matt:So the machine is kind of in charge.
Matt:What the mechanics then do, that's probably a bit more
Matt:of an equal partnership, but you know, you get the idea.
Matt:So our relationship with machines is changing, especially when we look
Matt:at the kind of AI powered automation services that are now being implemented.
Rich:Um, I was kind of led to a leave mat that we were talking about vaccines.
Matt:We were.
Matt:Um, but I figured that as this is the last show in November and we'll concentrate
Matt:mostly on year end roundups and, you know, big in 2021 things in December, it
Matt:would fit better into that kind of light.
Matt:And yeah.
Matt:And I've been hearing and reading a lot about business automation over the past
Matt:few weeks, especially as we've been talking about ways that the metaverse
Matt:might intrude into our working lives.
Matt:So I wanted to talk more about the intrusion of AI and automation, especially
Matt:when it comes to our working lives and highlight some of the privacy issues
Matt:and the surveillance technologies that this hybrid work is enabling.
Matt:And of course, to ask, who do you turn to when your boss is a robot?
Rich:Is that likely those management roles being filled by machines?
Matt:Well, to an extent, they already are, you know, without jumping the
Matt:gun too much, a lot of current gig economy, jobs, you know, delivery and
Matt:distribution apps, he hailing where your employment is based around services
Matt:that are allocated through an app.
Matt:Your boss is already.
Matt:Basically an algorithm, it allocates you the tasks, it collates the customer
Matt:ratings that feed back your performance.
Matt:And of course it issues payment.
Matt:So this kind of setup is becoming more common.
Matt:And, you know, perhaps after an initial interview, which may even be done
Matt:with a third party contract company, many workers have very little human
Matt:interaction with the companies that.
Matt:Partnering, um, plenty of stories of service this year about workers.
Matt:Who've had their services terminated by those same algorithms.
Matt:Perhaps their scores have fallen bit below the minimum customer satisfaction
Matt:ratings that you need to stay on the apps or because of perhaps a particular
Matt:customer complaint, but often because there are no con uh, no humans, uh,
Matt:and the system can be quite opaque.
Matt:It's very difficult to find out exactly why you've been axed.
Rich:Yeah.
Rich:Is that because most of the workers are classed as, uh, suppliers or
Rich:partners rather than employees?
Matt:Well, yes.
Matt:So you often don't have much recourse to either tribunals at
Matt:the company you've been working with or protections under the law.
Matt:We are starting to see that change.
Matt:Uh, some countries are bringing in new rules that give gig
Matt:workers more employment rights.
Matt:They're giving them things like employer tax contribution.
Matt:Health protections, paid sick, leave things like medical leave,
Matt:you know, all the things that we took for granted in the old economy.
Matt:Yeah.
Matt:But we are seeing this creep of service automation into the supervisory
Matt:and managerial levels of companies.
Matt:Now I gave her a bunch of talks before the pandemic imprisoned me in this
Matt:bedroom studio where the theme was that I could start at the top of a company
Matt:rather than the bottom of a company when it comes to implementing AI solutions,
Matt:especially as we've seen this trend for listed companies to focus as much on.
Matt:Market performance, uh, you know, as much as delivering the products and
Matt:services that generate their profits.
Matt:Uh, for example, you know, Tesla passed the trillion dollar market cap mark
Matt:in, uh, October, despite 2020 being its first full year of profitability.
Matt:And even then it only delivered a modest $720 million in profit, not even a billion
Matt:dollars on a trillion dollar value.
Matt:How did we get,
Rich:how do you get from Tesla to your bosses?
Rich:A robot?
Matt:Well, it's not some dig it Elon Musk, long way he rain.
Matt:Uh, my argument was as global markets move at the speed of light data
Matt:packets of information that are moving around from place to place.
Matt:It makes sense to have machines.
Matt:In those C-suite positions that also operate at the same speeds as market.
Matt:And of course CEO's who are online 24 7 as my markets open and close around the
Matt:world, you know, think of all the money you'd save in Gilt, edge salaries and
Matt:stock options with a bot CEO, no golfing or expensive clubs and entertainment, no
Matt:bad PR and no sexual harassment suits.
Rich:Don't do.
Rich:Everybody laughed politely and told you it would never happen.
Matt:Yeah, you got it.
Matt:You know, we might not have seen the world's first automated CEO yet,
Matt:but there are plenty of inanimate CEOs already in the human realm.
Matt:But, you know, as I said, these supervisory bots are becoming increasingly
Matt:common bosses that you will never see or meet, but who still exert power
Matt:to influence your day-to-day work?
Rich:And how does this play into the argument?
Rich:You often make that, um, jobs and roles are being displaced by automation.
Matt:Well, we can backtrack to that point about top-up and, uh, top-down adoption.
Matt:You know, we've said it before.
Matt:Most people think about robots in the workplace as being
Matt:physical machines, either.
Matt:It's some scary Boston dynamics designed hunter killer, or the
Matt:kind of big industrial robots that are bolted in place.
Matt:Perform kind of parts of that manufacturing process.
Matt:Uh, and they think of robots more in terms of replacing manual jobs.
Matt:But we have to recognize that there is an element of double think going on here.
Matt:Bosses can use the threat of automation to hold wages down.
Matt:Uh, you know, we, haven't done a show about the, uh, great
Matt:resignation and its effects.
Matt:Uh, again, that's something we'll talk about in the year end shows, but what
Matt:we have seen is bosses saying if I have to pay you more than it's cheaper for me
Matt:to replace you with an algorithm or a.
Matt:Yeah, I noticed
Rich:you're sticking with algorithm rather than AI today.
Matt:Well, I think people know how interchangeable the terms are now.
Matt:Um, uh, we're not the only people, you know, ramming algorithms down their
Matt:throats, but certainly automation can be used in this way as a looming
Matt:threat, especially when shows like this, say that robots are coming for
Matt:your jobs, you know, we're helping to support the, the employers claims there.
Matt:It's often a lot more subtle than that.
Matt:I think we phrased it as the creep of automation in previous shows, stuff
Matt:like service and process automation.
Matt:You know, the stuff that isn't glamorous or headline.
Matt:Um, tools that replace those repetitive Drudge light tasks say, you know,
Matt:a tool that automates and speeds up invoice, matching and payments in a,
Matt:in, uh, an organization, things that are time-consuming and overlooked,
Matt:but very necessary as anyone who's ever had a, a data entry job is going
Matt:to tell you at the other end, you have RFID and facial recognition.
Matt:Payment systems that enable cashier lists checkouts in stores and restaurants,
Matt:stock management systems that can react to real time, consumer demand to reorder
Matt:and maintain inventory and all that under the hood stuff that isn't screaming in
Matt:meetings about how productive it is,
Rich:how is seeing this automation spread between legacy companies and stop.
Matt:Well, so we've seen globally, uh, expenditure on capital and technology
Matt:increase in double digits since the start of the pandemic, those bosses
Matt:who had been scaring, their staff with threats of automation realized that, Hey.
Matt:Technology doesn't get COVID.
Matt:So I got this example from a recent Rico daily podcast, titled automation is not
Matt:what you think, which uses the example of my bank in China, which is part
Matt:of Jack MA's, you know, enormous and.
Matt:Um, Ali pay and all the associated companies and they pioneered the
Matt:3, 1 0 model of collateral free personal and business loans.
Matt:It takes three minutes to fill out the application online or in the app.
Matt:One second for it to be approved and for the cash to be deposited in your account.
Matt:And CRO human interaction.
Matt:So 3, 1 0, it relies on Allie pays existing AI computing and risk management
Matt:technologies, but then you compare it to the thousands of loan officers
Matt:employed in a traditional bank, uh, with all of its branches, the time
Matt:it takes for submission and approval.
Matt:And you compare that with a startup bank that can automate that process without
Matt:any human staff at all being involved.
Rich:So there's a pressure on these legacy companies to streamline or even
Rich:automate their own business practices?
Matt:Well, certainly I think, you know, FinTech is, uh, is a, uh, a region or
Matt:an area where we're seeing a lot of churn and change, uh, because there
Matt:are so many new players coming in and because the existing players have got
Matt:millions or billions of dollars at stake, so they have to rapidly transform.
Matt:To meet the challenge.
Matt:And, you know, from a consumer point of view, we expect any financial
Matt:transactions we do to be instantaneous.
Matt:We expect to be able to move money from one place to another in seconds.
Matt:So there's an enormous pressure and X sets of expectations there
Matt:that it's quite unrealistic to expect a human workforce to meet.
Matt:You know, as well as greater productivity and volume, some of these players are
Matt:also passing those costs savings on to consumers because of having lower
Matt:overheads, they're offering low or no processing fees, they offer very
Matt:competitive rates and some of these next gen players are already huge.
Matt:Now I mentioned my bank.
Matt:There are also insurers like lemonade in the U S which went
Matt:public in 2020, and also works on this kind of automated model.
Matt:They offer insurance coverage in 90 seconds and they claim to pay
Matt:out on claims within three minutes.
Matt:So this gives them a lot more room to innovate.
Matt:They can offer flexible payment options, like paying your premiums
Matt:on a monthly basis and they state that they only take a flat fee.
Matt:Premium, which allows them to pass the cost savings on in terms of
Matt:lower premium costs to the consumers.
Rich:How is a bot your boss, if there are no staff,
Matt:well, I'm just illustrating the, the, the movement that, uh,
Matt:the direction that automation is taking and how it's affecting the
Matt:way traditional companies, staff.
Matt:So I don't want to call it disruption.
Matt:I think when we come to this kind of, uh, automation, all of this innovation.
Matt:Coming to these industries, you know, across the spectrum.
Matt:What we've seen is more of an acceleration in adoption,
Matt:partly because of the pandemic.
Matt:And partly because these new entrance haven't inherited those,
Matt:you know, legacy business models with huge numbers of staff.
Matt:And that's what we'll get into in a minute.
Matt:The managerial layer of machines that is coming soon to a white collar workplace.
Matt:Now, That
Rich:and more after the break, as we talk about the boss, where that allows
Rich:the algorithms to monitor you through your phone and through your laptop, you're
Rich:tuned into mansplained here on BFM 89.9
Matt:benchmark for managers BFM 89.9.
Rich:BFM 89.9, the business station.
Rich:My name is rich Bradbury.
Rich:And welcome back to Matt explained boss bots.
Rich:They work longer hours than you.
Rich:They only think about work and their idea of happiness and pastoral care.
Rich:It's a rating on a scale from one to five, Matt.
Matt:Yeah.
Matt:So that rating part is quite scary.
Matt:I mean, the rest of it just sounds like a normal bus, but, um, you know, we, we
Matt:mentioned that the, the gig workers who depend on feedback scores from customer.
Matt:Just to stay on the app, a low score and you're penalized, or
Matt:even thrown off the service.
Matt:But that could very much be the future of all of our working lives.
Matt:Imagine if you're in a client servicing role and after every
Matt:scheduled meeting the algorithms.
Matt:Uh, feedback note to ask the client to rate you for months or similarly,
Matt:if every piece of work you submit is similarly rated, you know, I know it
Matt:sounds a little ridiculous, but with the spread of more flexible working
Matt:conditions, we've seen this kind of co consequent and consecutive rise of boss
Matt:where software that's designed to monitor.
Matt:Well, ye and that's where we're seeing this first managerial layer,
Matt:or at least our interaction with an automated managerial layer
Matt:in these white collar settings.
Rich:Now, before we get into the technicalities of this kind of
Rich:software, what are we seeing in people's reaction to this type of technology?
Rich:Will they accept that their boss is no longer
Matt:a.
Matt:Well, that's why there's a bit of stuff to this, you know, not necessarily in a
Matt:deliberate way, you know, I'm not framing this as a conspiracy or a silent takeover.
Matt:I think a lot of gig workers, uh, appreciated the flexibility of the
Matt:approach that at least to begin with, you know, their manager,
Matt:the app was always there for them.
Matt:It worked the same schedule as them, or at least that's how it appeared.
Matt:You might get helpful notifications telling you about partner deals.
Matt:Booster packages as well as strategies to maximize your income
Matt:chat bot services that answered your questions, whatever the time of day.
Matt:So you don't see it as a boss, but it's a mistake to think that this
Matt:is like Alexa or Siri, something that's there to help you often.
Matt:It's only later when something goes wrong, but you realize
Matt:that this inscrutable assistant.
Matt:Isn't your friend is your boss and it's a boss that has the
Matt:power to end your employment.
Matt:Your source of.
Rich:And you think that we're seeing something similar
Rich:with this wave of boss where
Matt:very much so, you know, partly because the software might come
Matt:preloaded on a work laptop or phone, or your required to update your existing
Matt:machine to include that new software.
Matt:So you don't think of it as a supervisor.
Matt:But it's still something that's interacting with.
Matt:You sending you notifications about your productivity, about your performance and
Matt:all of that information is being fed back.
Matt:It will be raised in your performance reviews.
Matt:It will pull a form part of your record with the company.
Matt:It will influence your promotion.
Matt:Bonus or pay, raise prospects.
Matt:Those are all traditional boss roles.
Matt:You know, I was talking to someone who works in forensic data recently,
Matt:uh, you know, the kind of company that looks for signs of, uh, hacking or
Matt:corporate espionage, that type of stuff.
Matt:And he said, it's quite incredible.
Matt:What people still do with work laptops and phones and send through email.
Matt:You know, we're more than 20 years into digital working, being the norm, but
Matt:people still can't get it straight in their minds that everything they do with
Matt:a company, laptop or phone or tablet is subject to oversight and investigation.
Matt:It's not your device.
Matt:It's not your device in any way.
Matt:Browser history.
Matt:What shows you stream on a work device?
Matt:Those preferences can be monitored.
Matt:Your activities on that machine can then invite censure by your.
Matt:Um,
Rich:now, um, when we talk about boss, where, what kind of software,
Matt:I mean, there's an enormous range.
Matt:You know, one level it's simply, you know, logging into your machine.
Matt:It's basically a digital timecard and that's become a lot more important
Matt:since the start of the pandemic.
Matt:Because if you're working from home, it tells the company that
Matt:you're present and correct for work.
Matt:There may be some kind of software that limits the sites
Matt:you can access on the device.
Matt:You know, that's been standard at a lot of companies for a long time.
Matt:What's different now is that.
Matt:Much more work from home.
Matt:These company policies about what you can and can't do with machines.
Matt:This is now coming into much more of a domestic setting.
Matt:And I think where it starts to get even more intrusive is with things
Matt:like system management tools.
Matt:These might be looking at what you're doing with the files on the device.
Matt:Are you attempting to upload them to a cloud account?
Matt:That's not linked to the company.
Matt:Are you trying to email them from a non.
Matt:Linked email account.
Matt:So there's that security aspect in keeping the companies come from a
Matt:confidential information secure.
Rich:What about things like direct surveillance, you know, access to
Rich:your camera, that kind of thing.
Matt:Well, you know, uh, that kind of thing, um, things like key loggers,
Matt:for example, a very common, uh, again, at one end of the spectrum, it might
Matt:just be, uh, analyzing that you're actually using the machine that you are
Matt:actually typing things from time to time.
Matt:Uh, we've heard of this rising trend.
Matt:People taking more than one remote job and kind of juggling and spoofing sort of
Matt:working one and semi working the other.
Matt:So partially this is a guard against that, that you aren't just logging into
Matt:work and not actually doing anything during the day at the other extreme,
Matt:a Malaysian friend, remotely working as a copywriter for a us company.
Matt:They're key logging software, expected them to, to maintain
Matt:a certain number of keystrokes.
Matt:Um, I think every 10 minutes or so fall below it and notification
Matt:would be sent to the human boss.
Matt:But as you asked, you know, we're also seeing more tools that give
Matt:camera and microphone access.
Matt:Wow, that might involve the machine taking photos of you X number of times per hour,
Matt:or even X number of times per minute.
Matt:It might even capture a live stream from the cameras and Mike's while you're
Matt:logged in from work and all of this.
Matt:We'll then be stored for future reference.
Matt:It will be analyzed for your productivity or for human resources
Matt:permit purposes in the future.
Matt:And it goes without saying that bosses can access your screen in real time
Matt:and see what programs you're using, what sites you're currently reading,
Matt:you know, what browser tabs are open.
Matt:And of course what you're typing
Rich:now.
Rich:I mean, you've been speaking a lot about facial recognition software this year.
Rich:I always seeing that kind of technology being incorporated
Rich:into these, uh, boss where suites,
Matt:I think a piece in the Washington post used an example of facial recognition
Matt:software that had been created for.
Matt:Legal firms.
Matt:The idea is that it would help lawyers to track billable hours.
Matt:Now the same software can also be used to lock the computer.
Matt:Uh, so that sensitive documents can't be accessed by people other than the
Matt:user, you know, somebody can't just peer at your screen and see what's on it.
Matt:So if an unrecognized face, it could be a child, it could even
Matt:be a pet appears on screen.
Matt:Then the software locks, the computer until the registered
Matt:user comes back and logs back in.
Matt:However, the article pointed out that one of the users of the
Matt:software that they canvassed found that it was actually very glitchy.
Matt:The suite was very glitchy.
Matt:So if they moved around on the camera, the software would log them out.
Matt:As a result, the person had to adopt, uh, an unnatural posture and avoid
Matt:moving around just in order to.
Matt:And being able to be allowed to carry on.
Matt:My
Rich:word.
Rich:Okay.
Rich:Um, but th this really brings a, a question of harm, you know, when does
Rich:it stop being a productivity monitor and start being an unacceptable
Matt:intrusion?
Matt:Okay.
Matt:Well, that's another one of those complicated to answer questions.
Matt:You know, Gartner has found that the use of monitoring
Matt:software has more than doubled.
Matt:Pandemic, as of course, remote working has increased.
Matt:And as we're seeing with, uh, blue collar examples of these tools, legislation
Matt:is slow to catch up in the U S we're only starting to see legislation or
Matt:court rulings that are penalizing tools.
Matt:Like some of the ones Amazon has been using that set such
Matt:rigid targets for employees.
Matt:But, uh, some of them have reported wearing diapers on the warehouse floor
Matt:because they haven't been able to meet their targets if they do something
Matt:as simple as going to the bathroom.
Matt:Now that becomes, you know, even more complicated when you start looking
Matt:at these flexible work solutions, because you then see the domestic
Matt:and the professional situation.
Matt:Intermingling should accompany be recording your conversations while
Matt:you might be helping your kids with their online lessons, or should it
Matt:be recording a private conversation between you and your partner?
Matt:Because during the pandemic, the kitchen table has become, you know,
Matt:it's become your office, your partner's office, and it's become a classroom.
Matt:Yeah.
Rich:Other risks that this kind of stuff.
Rich:Good could cause harm.
Matt:Well, I mentioned that Amazon example, but there's also an enormous
Matt:potential mental health risk.
Matt:People are stressed that they're constantly being watched and you know,
Matt:and it can sometimes come as a surprise.
Matt:Uh, some of the companies.
Matt:Tell you what the software is that you're downloading others.
Matt:Just tell you, you know, you've got to download a, an update.
Matt:Uh, the Washington post article also quotes a guy who was looking
Matt:for some files on his machine.
Matt:And suddenly his boss came in over his headphones and told him.
Matt:You know what directories and folders to, to, to look in.
Matt:He had no idea.
Matt:Yeah.
Matt:He had no idea that his boss could even watch his screen, let alone listen to him.
Matt:Uh, you know, so there is a risk of staff adopting unhealthy practices.
Matt:Like we said wearing diapers rather than risking taking a break.
Matt:Uh, the, the friend I was talking about, got a notice from a boss because
Matt:it appeared that she was nodding off, you know, it was taking snaps
Matt:of her and it noticed that her eyes were closed for too many seconds.
Matt:Uh, and the algorithm flagged it and sent it to a boss to, you know, deal with.
Rich:So that direct performance evaluation
Matt:is there.
Matt:Yeah.
Matt:I mean, we've talked about, um, gait analysis on the show before, you
Matt:know, software that analyzes your posture and the way that you move.
Matt:And we've also talked about smart video conference software.
Matt:Can help you to read a room.
Matt:So those same technologies could be evaluating your performance again.
Matt:At one level it's relatively benign.
Matt:You know, it could tell the company, our meetings at 4:00 PM as
Matt:productive as meetings at 10:00 AM, but they can also single out the
Matt:performance of individuals over time.
Matt:Is that person as attentive as they were two months ago.
Matt:Are you a person who frequently contributes and do your
Matt:contributions enhance or degrade the quality of the meeting?
Matt:Are you someone who creates conflict amongst your team members?
Matt:Because it's not only your performance in meetings, it will evaluate, you
Matt:know, it will also look at what kind of language you use when you're
Matt:communicating with colleagues.
Matt:Emails direct calls, slack or instant messages.
Matt:It will look at things like, you know, are cliques forming are people
Matt:ganging up on some team members?
Matt:So
Rich:the issue becomes who or what is judging us.
Matt:Yeah.
Matt:You know, we talk about bias in software.
Matt:It could be racial bias, gender cultural, and these things can
Matt:be hard-coded from the start.
Matt:So for example, you know, I was often accused of being brusque in
Matt:communications with Malaysian colleagues.
Matt:They would write me a hugely long email and I would just
Matt:respond with yes, no, or note it.
Matt:And they found that insulting because my.
Matt:Once contained no acknowledgement at the time and effort that had
Matt:gone into writing the message.
Matt:Similarly, they couldn't understand that I was incandescent with rage and
Matt:wanted to tear down the world when they walked into a meeting five minutes late.
Matt:You know, can software manage these differences?
Matt:We know that machines struggled with context.
Matt:So how do they differentiate between someone who's direct and
Matt:somebody who's rude because those two things can often appear.
Matt:To be the same, but somebody who's rude can actively derail
Matt:a project, but somebody who's direct can help to speed it along.
Matt:So because you know, we, we are giving these or rather before we give these
Matt:machines decision-making powers.
Matt:We have to be sure that they're capable of reaching and making the
Matt:right decisions and that when they don't, there's still a human in that
Matt:management layer that we can appeal to.
Rich:Great.
Rich:Thanks very much
Matt:for that, man.
Matt:Thank you.
Matt:Sorry about the, uh, the cracking and bubbling of my voice, everyone.
Matt:Uh, I, yeah, I do apologize.
Rich:He's just kind of hold folks.
Rich:Don't worry about it.
Rich:Now you can find Matt on Instagram and Twitter at culture mat, you can also head
Rich:over to culture, pub.com for transcripts of these shows and information about
Rich:culture and its consulting services.
Rich:My name is rich Bradbury for BFM 89.9.
Rich:The business station.
Rich:Mm
Matt:Hmm.
Matt:Thank you for listening to this podcast, to find more great interviews, go to
Matt:BFM dot mine or find us on iTunes.
Matt:The FM 89.9.