Most of the developed countries are service economies.

A country’s economy can be categorized as either a service economy or a manufacturing economy. As the name hints, manufacturing economies are reliant on creating the primary value by developing physical goods while the service economies are reliant on providing value-additive services.

In a manufacturing economy, it is easy to place a value on human capital as each individual’s output can be quantified. Service economies are more complex and are primarily a characteristic of developed countries. Service economies involve complex processes such as product design, brand development, financial services, etc. A large group of people have to coordinate to create the final service and this makes it quite difficult to quantify the value provided by each individual.

At the end of the day, the workers’ in a service economy receive an earning that is subjectively calculated by a person. Today, service economies are increasingly integrating labor force from the gig economy where each person is recruited for tasked pay. As the gig economy can involve a global cooperation, it becomes even more challenging to quantify each person’s contribution to the final service. A new project aims to remove the subjective pay calculations in the gig economy and intends to utilize artificial intelligence for this task.

AI-Powered Wage Valuation

The Blackbox Business Operating System is leveraging the benefits of blockchain and AI to create the most advanced ecosystem for the gig economy.

Data is the fuel for AI advancement and an ecosystem that facilitates will have the necessary data to develop advanced algorithms through extensive machine learning. The resulting artificial intelligence will be integrated into Blackbox to create a tamper-proof valuation for each person’s contribution to a project. As the project continues onwards, increasing amounts of data will fuel machine learning to create an ever-improving mechanism for valuing individual contributions to the success of a project.

With the development of such a process, a milestone that seemed nearly impossible to achieve would be finally within reach. Most economic theories involve simplified situations and model optimizations based on closed ecosystems where each worker is assumed to be paid the proper earned value for his/her work. However, contributions have been nearly impossible to quantify and even the most successful companies pay as per reference of past records of pay and current budget. This is an economic inefficiency that has plagued the labor market since the dawn of mankind.

Blackbox uses advanced technology to improve the state of employment. One of the most important roles it plays is the utilization of AI to quantify the true value of any person’s value-added contribution to a project. We could soon witness a labor market where each person would earn in proportion to the true value addition he/she offers.