Risk analysis

Disappearing Versus Getting Cheaper

Two completely different fates, constantly confused, and the thing that determines which one you get.

My Career Crusader9 min read861 words

When a task becomes automatable, two things can happen, and they lead to opposite outcomes for the people who did it. The task can disappear: the work stops being done by people, headcount falls, the function shrinks. Or the task can get cheaper: the price per unit collapses, demand rises to meet it, and the total amount of work stays flat or grows even though each unit takes a fraction of the effort.

Almost every discussion treats these as the same event. They are not, and the difference is not determined by the technology. It is determined by whether there was unmet demand sitting behind the price.

The mechanism Ask a simple question about any task: if this became ten times cheaper tomorrow, would people want ten times more of it? For some work the answer is clearly yes. There is a large backlog of things nobody bothered doing because they were not worth the cost. Translation is the standard example — an enormous volume of material was never translated because translation was expensive, and when the price fell the volume translated rose dramatically. The work per unit collapsed; the total amount of translation went up. For other work the answer is clearly no. A company needs its payroll run once a month. Making payroll processing ten times cheaper does not cause anyone to run payroll ten times. The demand is fixed by something external, so cheaper straightforwardly means fewer people.

That distinction — elastic demand versus fixed demand — does more to predict what happens to a function than anything about the capability of the technology.

The most cited example is bank tellers and cash machines, and it is worth understanding properly because it is usually told badly. Cash machines automated the core teller task. The obvious prediction was that tellers would disappear. What actually happened, as documented by the economist James Bessen, is that teller employment in the United States grew for decades afterward. The reason is that machines made each branch cheaper to operate, so banks opened many more branches, and each branch still needed staff. The job itself changed substantially — less cash handling, more selling and relationship work — but the headcount did not collapse. This is the elastic case. There was suppressed demand for bank branches, and cheaper branches released it. Set against that: switchboard operators and typesetters. Both were genuinely eliminated. Nobody wanted ten times more telephone connections per person or ten times more typeset pages once the cost fell, because demand for both was determined by something else entirely. Those jobs did not transform. They ended.

Which one is your work Three questions that get you most of the way there.

Is there visible unmet demand? Are there things in your domain that would obviously be worth doing if they were cheaper, and that nobody currently does? A backlog of analyses nobody runs, documents nobody reviews, customers nobody serves. If that backlog is large, cheaper probably means more. Is the quantity set by something external? Regulatory filings, monthly cycles, headcount, the number of customers you have. If the amount of work is determined by a factor outside the cost of doing it, cheaper means fewer people, straightforwardly. Does more of it actually help anyone? Sometimes there is technically unmet demand but nobody benefits from meeting it. Producing ten times more marketing content does not produce ten times the attention, which is why marketing production is in the shrinking category despite the demand looking elastic on paper. The test is whether the additional units have value, not whether they can be produced.

What to do with the answer If your work has elastic demand behind it, the shape of the next few years is disruption rather than disappearance. The job changes, sometimes uncomfortably, and the skills required shift — but the function persists and may grow. The correct response is to move fast on the tooling and to accept that the job you have in three years will not be the job you have now. Being the last person doing it the old way is the risk, not redundancy. If your work has fixed demand, be more direct with yourself. Cheaper means fewer, and the timeline is set by how quickly your organisation gets its act together rather than by anything

technical. Plan accordingly, and plan earlier than feels necessary.

Most people have some of each in their week, which is another reason the task -level view is the only one that works. The right response may genuinely be different for two different parts of your job.

The trap in the optimistic version One caution, because the elastic case gets used as a general reassurance and it should not be.

Even where total employment holds, the transition is brutal for individuals. The tellers who kept their jobs were doing different work, and not all of them wanted to or could. "The function survives" and "you personally are fine" are different claims, and only the first one is supported by the history.

were cheaper. If there is, expect transformation. If the volume is fixed by something external, expect compression, and start earlier than feels necessary.

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