Automation
Synthetic Labor™ vs. Traditional Automation: Understanding the Key Differences
By:
Russ Malz
| October 24, 2024
Innovating to improve operational efficiency has never been more critical. Traditional approaches — like offshoring and scaling human labor — are no longer delivering the results businesses need due to rising costs and rapidly changing business dynamics. Over the last decade, software tools like Robotic Process Automation (RPA) and early-generation bots have helped automate repetitive tasks but fall short of addressing deeper and more sustainable operational needs. Traditional approaches and tools have proven to be rigid, difficult to change, and costly to maintain. A new paradigm is now emerging — Synthetic Labor™ — which signals a fundamental shift in how businesses are rethinking work and productivity at a systemic level.
RPA: Task-Focused Solutions
Traditional automation tools like RPA are designed to address specific, rule-based tasks. While RPA has been valuable in improving efficiency and reducing human error, RPA task-focused solutions are limited. RPA tools follow predefined rules, struggle to adapt to complex or unstructured data, and require significant oversight when faced with variability. Modifying an automation task based on pre-defined rules requires "re-programming," a process that can take months to implement, test, and deploy. As RPA programs expand, they also become increasingly challenging to maintain.
At its core, task-focused automation aims to accelerate routine workflows, but it still treats automation as a tool — a support function designed to assist human workers.
Synthetic Labor: A Paradigm Shift in the Workforce
Synthetic Labor, on the other hand, goes beyond simply automating tasks. It’s not just a tool; it’s a scalable “workforce” that is easy to train, deploy and maintain. Powered by AI-enabled technologies including Large Language Models (LLM) and Machine Learning (ML), Synthetic Labor can perform complex, knowledge-based tasks. Unlike traditional automation, which is confined to structured data, Synthetic Labor can process unstructured data from a wide range of sources — documents, emails, images, and more. It is capable of understanding context, making decisions, and learning over time.
Synthetic Labor is trained in the same way a new hire is trained — by experts. Synthetic labor goes through a four-step learning process as outlined below.
- Step One: Read, classify, and index a document. Out of the box, the software will often achieve a level of accuracy of over 60%.
- Step Two: A Subject Matter Expert (SME) provides an instruction set explaining how the task should be performed (in this case classify and index). The instructions are written in English, and often are the same instruction books used to train new employees. As a result, accuracy improves significantly. We have seen accuracy over 90% after step two.
- Step Three: The SME then provides approximately 10 examples of “what good is” or ideally what perfect is. At this point, the Synthetic Labor recursively learns, and accuracy is further amplified. Following this step, we have seen accuracy rates north of 99%.
- Step Four (Synthetic Kaizen): As the SME continues to evaluate (quality check) results and provide feedback, two important things happen. First, automation becomes more intelligent over time. Second, if rules change, or if a new rule set is introduced, the SME updates the rules (written in English) and the Synthetic Labor instantly understands and incorporates the new rules into its processing behavior.
Where traditional automation focuses on task automation, Synthetic Labor is a broader solution that can transform entire business processes. It does not just perform tasks faster; it performs them “smarter”, constantly adapting to new challenges and opportunities. Additionally, Synthetic Labor enables business users to educate their teams without requiring programming and testing to change business processes.
Redefining Workforce Dynamics
One of the most significant aspects of Synthetic Labor is how it redefines the division of labor. Traditional labor structures rely heavily on teams or outsourced workforces, which have limitations in terms of quality, productivity levels, and deployment speed. Synthetic Labor, by contrast, takes on the repetitive, error-prone tasks that are often a drain on a human workers’ time and energy.
This shift offers several key benefits:
- Enhanced Human Productivity: With Synthetic Labor handling routine tasks, human employees are free to focus on high-impact, strategic activities that require creativity and critical thinking.
- Improved Job Satisfaction: Employees who are no longer bogged down by tedious, low-value tasks are more likely to feel engaged and fulfilled in their work, leading to higher retention rates.
- Operational Efficiency: Synthetic Labor can be deployed at scale, offering consistent, round-the-clock labor without the overhead costs associated with managing human teams.
- Unimaginable Business Agility: Synthetic Labor is trained on the English language. This allows for rapid adaptation through human instruction, enabling human trainers to quickly modify and update its functions as needed.
A Strategic Approach to Implementing Synthetic Labor
The most successful Synthetic Labor programs share these characteristics:
- Executive Buy-In: Leadership commitment is crucial for driving the adoption of Synthetic Labor and ensuring that it aligns with broader organizational goals.
- A Culture of AI Acceptance: Leadership must also encourage employees across departments to embrace Synthetic Labor as a core part of the business, rather than viewing it as merely another software tool.
- Pilot and Scale: Start with a targeted pilot program to demonstrate the value and ROI of Synthetic Labor before rolling it out organization wide.
The Future of Work: A Hybrid Model
Synthetic Labor marks a significant transformation in the labor market, providing businesses with a chance to reshape their workforce strategy. It’s not about replacing human workers, but about creating a hybrid model where AI and humans collaborate seamlessly. In this new paradigm, human workers are freed from routine, repetitive tasks and can focus on driving innovation, strategy, and customer engagement.
As AI adoption advances, Synthetic Labor offers a next-generation solution that delivers operational efficiency along with the flexibility to adapt to future challenges, positioning organizations at the forefront of both technological and workforce innovation.
Embracing the Future of Work
The introduction of Synthetic Labor marks a new frontier in workforce strategy, moving beyond the limitations of traditional automation. With the ability to handle complex tasks, scale efficiently, and enhance human productivity, Synthetic Labor is poised to transform the way businesses operate. By strategically deploying Synthetic Labor, organizations can solve immediate challenges and set the stage for future growth, all while unlocking the full potential of their human workforce.
The future of work is here, and it’s synthetic.
By: Russ Malz
Russ Malz is the Chief Revenue Officer at KnowledgeLake.