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Businesses May Lean on Automation as Economy Shakes off Coronavirus
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Welcome back. The sharp economic downturn sparked by the coronavirus could lead to an acceleration in automation, at least for some companies. Under pressure, companies are looking to cut costs, boost productivity and manage their facilities safely as people return to worksites. Today, we look at how robotic software and physical robots, some powered by AI, could play a role.
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Grocer Ahold Delhaize, the parent company of the Peapod delivery service and Stop & Shop and Food Lion stores, is accelerating development of robotic technologies due to Covid-19. CREDIT: RICHARD B. LEVINE/ZUMA PRESS
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Businesses expected to lean on automation for recovery. Companies are expected to ramp up automation in the aftermath of the coronavirus outbreak, as employers seek to cut costs and boost productivity, The Wall Street Journal’s Angus Loten reports.
Some of these cost-cutting efforts will involve the use of artificial-intelligence-powered robotic software developed to replace workers by tackling repetitive tasks, such as handling routine contact-center calls and processing employee-benefits forms. But physical robots also will be enlisted to stock grocery-store shelves, disinfect hotel rooms and perform other manual labor that carries a heightened risk of infection.
Recovery to drag through next year. The Congressional Budget Office on Tuesday said it expects the U.S. economy’s recovery from the downturn caused by the pandemic to drag on through the end of next year, reflecting the sharpest declines in the labor market since the 1930s.
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Forrester Research expects the downturn to be followed by a prolonged jobless recovery, driven by a surge in automation, according to a recent report.
“The pandemic has redrawn the automation landscape with a pattern that is clear from previous recessions, but with a Covid twist,” said Craig Le Clair, vice president and principal analyst at Forrester. The goal, he added, is to maintain or expand operations with fewer employees.
Many companies already boosting automation efforts. Research firm International Data Corp. estimates that 40% of companies world-wide are already increasing their use of automation as a response to the outbreak.
“The focus of the next several months will be in driving out inefficiency and speeding up operations through the use of automation,” said Maureen Fleming, program vice president for intelligent process automation in IDC’s market research and advisory group.
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Jonathan Cherki, founder and chief executive of Contentsquare, expects the company to remain independent. CREDIT: CONTENTSQUARE
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Contentsquare raises $190 million in funding. Contentsquare, a digital analytics company, has raised $190 million in new funding. The latest capital round is earmarked to help the company expand while also investing in artificial intelligence-based and predictive analytics, WSJ Pro’s Laura Cooper reports.
Contentsquare analyzes digital behavior to help companies better understand their customers and in turn provides recommendations and other tools. It analyzes 10 trillion consumer interactions, including $1.4 billion in e-commerce sales a day.
BlackRock Inc.’s Private Equity Partners team led the new round of funding. The latest investment brings Contentsquare’s total raised to $310 million.
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Google to stop building AI tools for energy companies. Google said it will stop developing custom AI tools designed to help extract oil and gas, the Associated Press reports. The announcement comes after Greenpeace released a report on how Google, Microsoft and Amazon were using artificial intelligence and computing power to assist energy companies in their search and access of oil and gas deposits, according to the report. Greenpeace said the three technology companies have been undercutting their climate-change pledges by working with major oil-and-gas companies looking to pull more resources from the ground, the report says.
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Detecting walkers’ emotions. Researchers at the University of Maryland developed an algorithm that can detect how a person might be feeling based on their walk, Wired reports. The algorithm analyzes whether a person might be happy, sad or angry based on their gait.
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Many say self-driving cars not ready for the road. Three out of four Americans say autonomous vehicles are “not ready for primetime,” CNET reports. In a new survey, which included 1,200 Americans, 48% of respondents said they'd never get in a self-driving taxi, according to the report.
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The nation’s top two economic policy leaders offered contrasting visions about the economic outlook, with Treasury Secretary Steven Mnuchin favoring a wait-and-see approach to more federal aid and Federal Reserve Chairman Jerome Powell suggesting more would be needed. (WSJ)
Some of the biggest U.S. retailers are ending the extra pay they gave to front-line workers as coronavirus-related costs pile up and the ranks of jobless Americans surge, tipping the labor market in employers’ favor. (WSJ)
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