Does automation eliminate manual work or repurpose it?
Explores whether algorithmic systems replace human labor or transform it into new forms. Matters for understanding how organizations actually adapt to automation rather than assuming simple replacement.
Grønsund and Aanestad's two-year qualitative case study (September 2017 to October 2019) of a maritime shipbroking firm ("ShipCo") that introduced algorithmic support for geospatial satellite data analysis and prediction finds that the firm's response to automation was not replacement but a "human-in-the-loop pattern" built from two new roles of "augmentation work": auditing — "the generation of a ground truth and assessment of the algorithmic output against this" — and altering — "the work of altering the algorithm and the data acquisition architecture." As the conclusion states, "some tasks, namely auditing and altering the algorithm, were new and constituted the core of augmentation work." The firm's pre-existing role of manual data classification "was not replaced, but repurposed to provide the auditing process with a ground truth against which the algorithmic outcome was compared."
The two roles are, in the authors' terms, "mutually dependent on each another, eventually forming a feedback loop" (their Fig. 6): auditing generates the ground truth that lets algorithmic output be assessed; that assessment surfaces the gaps that altering then acts on, by adjusting the algorithm itself or the data-acquisition architecture feeding it; the altered system produces new output for auditing to assess again. The paper frames this as a response to Markus's (2017) call to "focus on the organizational and environmental conditions that promote or inhibit the effective performance of humans in the control loop," and argues the human-in-the-loop configuration becomes a "strategic capability" precisely because the feedback loop supports learning and keeps algorithmic performance aligned to "the organization's requirements and changes in the environment."
This gives an empirical, pre-LLM precedent for framings the library already holds for generative-AI collaboration. It reads as a concrete instance of How should humans and AI systems divide decision-making tasks?: ShipCo's repurposed classification role is a Type B-leaning retention of human judgment (ground truth generation needs a human), parallel to how How should AI agents and humans divide research tasks? keeps final decisions with humans even as proposal work is delegated — except here the human role is pulled toward auditing and altering rather than toward decisions per se. It also anticipates the vocabulary in How do humans and technology share control over organizational routines?: altering is protocol development that this case keeps human-controlled, which that later taxonomy would classify as an augmenting-technology quadrant, even though Grønsund and Aanestad's fieldwork concluded the year before that taxonomy was published and neither paper cites the other.
The study is a single case at a single firm in one domain — geospatial satellite data analysis and prediction for maritime trade — using interpretive methods (participant observation across 39 meetings, informal interviews, no audio recording, retrospective field notes), so the "strategic capability" claim is this case's interpretation, not a cross-organization finding. The "algorithm" here is a classification and prediction system, not an autonomous agent taking goal-directed action, and the fieldwork ended in October 2019, before generative AI or LLM-based agents existed. The paper does not establish that auditing-and-altering is the pattern organizations will adopt for more autonomous agents; the implication it supports is narrower: when organizations introduce algorithmic automation into analysis work, expect new human roles to form around auditing and altering the system rather than assuming the automation simply removes labor — whether that pattern holds for today's more agentic systems is a separate, open question.
Inquiring lines that read this note 10
This note is a source for these research framings, grouped by the broader line of inquiry each explores. Scan the bold lines of inquiry; follow any specific question forward.
How does AI adoption reshape employment and wage outcomes?- Why do ATMs and automated systems often complement rather than replace human workers?
- How did bank teller jobs survive the massive growth of ATM machines?
- Can complementarity between automation and human work offset job displacement broadly?
- Why did agriculture employment collapse while manufacturing and services grew after mechanization?
- Does automation's wage effect depend on whether remaining tasks need more or less expertise?
- Does removing tasks from workers require higher or lower expertise for remaining work?
- Why do high-volume retail tasks automate while rare medical tasks resist automation?
- How does the labor-AI substitution elasticity change as automation spreads across tasks?
Related concepts in this collection 3
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How should humans and AI systems divide decision-making tasks?
Explores whether human-AI decision-making is fundamentally an organization design problem requiring choices about task division and learning configurations, not just technical optimization.
ShipCo's repurposed classification role is an empirical instance of Puranam's Type B-leaning retention of human judgment
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How do humans and technology share control over organizational routines?
How do different splits of decision-making authority between humans and machines affect whether work routines can adapt quickly? This matters for understanding when automation helps versus constrains organizations.
altering is human-controlled protocol development, the configuration that taxonomy would later label an augmenting-technology quadrant
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How should AI agents and humans divide research tasks?
In building its own foundation model, Atria Dawn studied how to split work between agents and human researchers. Understanding this division matters for designing effective human-AI collaboration in technical R&D.
a parallel case of human work narrowing to oversight rather than disappearing once an automated system handles the bulk of a task
Related papers in this collection 8
Papers most semantically related to this note, ranked by cosine similarity in the embedding space.
- Augmenting the algorithm: Emerging human-in-the-loop work configurations
- Agents, robots, and us: Skill partnerships in the age of AI
- How Organizations Use AI: Evidence from ChatGPT
- Artificial Intelligence and Management: The Automation-Augmentation Paradox
- Why Are There Still So Many Jobs? The History and Future of Workplace Automation
- A Model for Types and Levels of Human Interaction with Automation
- Anthropic Economic Index report: Uneven geographic and enterprise AI adoption
- The Simple Macroeconomics of AI
Original note title
Grønsund and Aanestad find augmentation work splits into auditing and altering roles that form a feedback loop with the algorithm