"Our case studies show that AI is used to transfer service-related tasks from in-house employees to outsourced vendors. Similar dynamics are put in place by companies for manufactured goods. The distancing of the workforce allows for reduced labour costs in sectors where local wages are traditionally high (Esparza, 1992).
As a result, volume growth and production costs no longer grow linearly. In this context, automation should be viewed as a form of labour externalisation."