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The Perils and Promises of Digitalization
Traditionally, the digital divide refers to the gap between segments
with access to digital technology and those without access. But the
real digital divide is between the advocates and the critics of
digitalization. There is a polarized view of whether a fully digital
world brings more opportunities or more threats (see 
Figure 4.1
).
The digital divide will continue to exist unless we manage the risks
and explore the possibilities.
Perils of Digitalization
There are five threats of digitalization that strike fear in the hearts of
many people.
#1 Automation and Loss of Jobs As businesses incorporate
automation technologies such as robotics and AI in their processes,
there will be job losses. Automation aims to optimize productivity by
using fewer resources and improving reliability. But not all jobs will
be at risk. Repetitive tasks, which have low value and are prone to
human errors, are the low-hanging fruit for robotic process
automation (RPA). Jobs that require human empathy and creativity,
however, are harder to displace.

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FIGURE 4.1
 Perils and Promises of Digitalization
The threat is also not equal globally. In developed countries, where
labor costs are higher, the impact of automation on efficiency will be
more significant. In emerging countries, on the other hand, the cost
of implementing automation to replace human labor is still difficult
to justify. These variations make the digital divide harder to close.