The Feeling

Economy: Managing
in the next generation
of Artificial
Intelligence(AI)

Group 16
Dubon yaying - MBA21019
Ramkumar S - MBA21044
Rasal Jayant Gokuldas - MBA21045
Tejas S Keragodu - MBA21066
 Summary

AI performs Analytical and thinking tasks, Humans performing unprecedented, empathetic and
emotional dimensions of their works.

Automation and AI have taken over many of mechanical and routine tasks.

Human workers focus more towards tasks that AI cannot be better.

Based on U.S. government data, In next 20 years, Feeling economy will become dominant.
 Shift to AI

AI will augment Replace human

AI technology mimics
human workers and workers. Less labor
human intelligence
create new jobs is required

Reason Optimistic Pessimistic

 Feeling Economy

Total employment and wages Interpersonal, empathetic, feeling

attribute to feeling tasks exceeds tasks, influencing others
thinking or mechanical tasks

Thinking economy - most of the Mechanical economy - Physical and

work time spent in dealing with repetitive tasks overtaken by
information thinking economy
 AI Intelligences: Mechanical, Thinking,
AI
Input for AI learning is data
can be contextual and non-
contextual.
Machine learning and deep
learning neural networks
methods.
Machine doesn’t learn and
update are not AI.
Feeling
Mechanical Intelligence Thinking Intelligence Feeling Intelligence
Capability to analyze and
Capability to recognize,
To do mechanical and make decision independently
emulate and respond
repetitive tasks. from the data.
appropriately to humans.
Mechanical AI can learn Eg: Autonomous car
AI learns and adopt from
and adopt to a minimum Advanced version is
experience. Eg: Alexa, Siri.
degree. bounded rationality.
Analyze natural language
Eg: Factory automation Intuitive thinking and
and emotions.
cognitive bias are hard.
 Empirical Evidence
● The year 2006 is a turning point in modern AI, as it was the year IBM debuted Watson.
● The data was intended to illustrate that the importance of feeling tasks is increasing.
● Feeling tasks are becoming increasingly important in terms of total employment and average
salaries.

DATA

● The data capture 2 occupational information: the job side contains data about work activities, characteristics,
and tasks; and the worker side contains data about ability, skills, and training.
● The data capture two sides of occupational information: the job side contains data about work activities,
characteristics, and tasks; and the worker side contains data about ability, skills, and training.
● The choice of which side of the data to use depends on whether researchers focus on analyzing job tasks or
worker skills
● The task data used for the analyses in this article are from the job side, detailing various tasks’ importance
to jobs, and total annual employment and average annual wages for jobs.
Measures
Emergence of feeling Economy
GAINING IMPORTANCE OF
FEELINGS TASKS
● Relative importance of mechanical task was 24.7%,
thinking task was 44.8%, and feeling task was 30.5% to
human jobs in 2016
● Relative task importance to jobs by intelligence was
calculated on a total of 100 percentage based on the
average importance rating of each task to jobs in the
three intelligences
● Mechanical tasks had less importance than thinking
tasks for human jobs
● Thinking task were more important than feeling tasks
● Feeling tasks have been gaining in importance for
human jobs (5.1%) and thinking tasks have been staying
roughly constant in importance (0.5%)
● Mechanical tasks have suffered the largest importance
decline over the last 10 years
● Importance shift of thinking tasks is not significantly
different from the importance shift of mechanical tasks
● Importance shift of feeling tasks is significantly higher
than both mechanical tasks
● It implies that the thinking economy is well established
and Feeling economy is approaching
GROWTH OF FEELING EMPLOYMENT
AND WAGES ● Thinking tasks and feeling tasks have
contributed about the same amount to
employment increase
● Employment increase attributable to
mechanical tasks has been small
● Average wages attributable to feeling
tasks have increased more than the wages
attributable to thinking tasks and more
than the wages attributable to mechanical
tasks
● Demand for employees with feeling skills
is increasing, relative to employees with
thinking skills
● Total employment change = (Total employment 2016 - Total
● Feeling tasks are increasing in
employment 2006 ) / Total employment 2006
importance, with respect to both
● Average wage change= Total employment/ Average wage
employment and wages
● Indication of the emergence of the Feeling
Economy
GROWING FEELING INDUSTRY
Industry
Community and Social Service
Sales and Related
Personal Care and Service
Management
Food Preparation and Serving Related
Education, Training, and Library
Protective Service
Business and Financial Operations
Healthcare Practitioners and Technical
Healthcare Support
Jobs Illustrated ● The table displays the 10 industries for which
feeling tasks are more important to jobs than other
Health counselors; marriage and family therapists;
child, family, and school social workers industries
● Table includes community and social service,
First-line supervisors of retail-sales workers, retail
salespersons, insurance sales agents sales and related, personal care and service,
management, and food preparation and serving
First-line supervisors of personal service workers,
animal trainers and caretakers, entertainment related industries
attendants
● All the services which are high touch are
Marketing, financial, training and development intensive in social interaction, emotion, and
managers
communication
Chefs and head cooks, first-line supervisors of food
preparation and serving workers
Business, biological science, environmental science,
anthropology and archeology,
Forest free inspectors and prevention specialists,
private detectives and investigators
Management analysts; meeting, convention, and
event planners; fundraisers;
Dentists, orthodontists, optometrists, pediatricians
Home health aides, nursing assistants, occupational
therapy assistants
GROWING FEELING INDUSTRY
● Feeling tasks in 2016 were much more important to the
two jobs than in 2006, whereas thinking tasks become
less important
● Financial managers job shows stronger emphasis for
feeling tasks than the personal financial advisor job
● In 2006 for personal financial advisors mechanical and
thinking tasks were important, whereas in 2016 feeling
tasks were given at most importance
● Jobs that are traditionally emphasized thinking
intelligence are becoming more feeling oriented
● Biochemists and biophysicists required 7.9% of feeling
intelligence in 2006, by 2016 requirement for feeling
intelligence surged to 25.5%
● Statistician’s job required high thinking intelligence but
much lower feeling intelligence in 2006, but in 2016 it
requires less thinking intelligence and more feeling
intelligence
● Increase in AI ability has led to jobs that traditionally
emphasized thinking tasks are emphasizing more on
feeling tasks
Managing In The Next Generation of AI
Managers

Transform Jobs to be
more people oriented
Think of AI aand
Human Worker as
Team

Shift emphasis in
hiring from analytical
ability to people skills
 Employees Consumers
Recognize that
consumers are
Increase emphasis increasingly feeling
on feeling and relationship
intelligence and oriented
people skills

Learn to Work with Be More Responsive

AI to consumer’s
emotional needs
 Businesses

Add feelings Become more

components to the feeling intelligent
business

Emphasie feeling
more when
marketing to
consumers
 Researchers
Investigate the
Relate feeling changes in the
economy to intelligence
other composition
constructs and jobs

Explore the
Explore non Charatarize
boundaries of
AI the feeling
the feeling
contributing Economy
Economy
factors to
feeling
Economy
 Educators

Emphasize education on the

emotional intelligence and place TEch Human - AI collabaration
somewhat less weight on thinking
intelligence

Conclusion

➔ Adaptability towards AI
➔ reliance on feeling, empathy, and emotional intelligence for human
workers
➔ Threaten vs Transformed
THANK YOU