Automated Deindustrialization: How Global Robotization Affects Emerging Economies—Evidence from Brazil

Managing artificial intelligence in international business: Toward a research agenda on sustainable production and consumption

“…To provide concrete evidence, increasing managerial adoptions of AIdriven automation in exporting countries has led to reduced employment in manufacturing sectors in Brazil (Stemmler, 2023). Therefore, the adverse fear is that backshoring would reduce employment in developing countries, thereby increasing global income inequalities (Pinheiro et al, 2023;Studley, 2021).…”

“…Hence, managers can improve the quality of products and production, automating tasks and thereby driving firms to relocate production plants to their home countries (Kinkel et al, 2023;Stemmler, 2023).…”

“…Furthermore, managers can equip assembly lines with AI to constantly monitor the production process and autonomously, which aids in reducing operational costs and automating product testing (Yu, Fletcher, & Buck, 2022; Yu, Liu, et al, 2022). Hence, managers can improve the quality of products and production, automating tasks and thereby driving firms to relocate production plants to their home countries (Kinkel et al, 2023; Stemmler, 2023). Similarly, managers of manufacturing firms may increase productivity with AI in just‐in‐time production systems.…”

“…Concerning social well‐being, empirical insights indicate that managers can increase health and safety practices and improve factory workers' physical and mental health by improving working conditions and automating monotonous and routine tasks (Ferreira et al, 2023). However, AI‐driven autonomous or semiautonomous manufacturing processes also raise the issue of replacing human labor with machines, which leads to loss of employment and job displacement (Stemmler, 2023).…”

“…Advanced technologies like robotic AI within the global value chain are negatively altering employability in manufacturing in several developing economies (Bertulfo et al, 2022). To provide concrete evidence, increasing managerial adoptions of AI‐driven automation in exporting countries has led to reduced employment in manufacturing sectors in Brazil (Stemmler, 2023). Therefore, the adverse fear is that backshoring would reduce employment in developing countries, thereby increasing global income inequalities (Pinheiro et al, 2023; Studley, 2021).…”