Which of the following describes a disadvantage of automation?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which of the following describes a disadvantage of automation?

Explanation:
A key downside of automation is the need for significant training and upskilling. Implementing automated systems requires workers to learn how to operate, monitor, troubleshoot, and maintain the new technology, as well as to understand new workflows and data interfaces. This training can be costly in terms of both money and time, may involve external specialists, and can cause temporary dips in productivity as staff reach proficiency. These upfront and ongoing training costs can offset some of the anticipated savings from automation, especially in the early stages or in environments with high staff turnover. The other statements aren’t accurate reflections of automation. It doesn’t remove all risk—new risks like cyber threats, system failures, or integration issues can still exist. It doesn’t guarantee 100% accuracy— automated processes can still produce errors due to data quality problems, configuration mistakes, or unforeseen edge cases. And change management is usually required to ensure processes, people, and technology align effectively during and after the shift to automation.

A key downside of automation is the need for significant training and upskilling. Implementing automated systems requires workers to learn how to operate, monitor, troubleshoot, and maintain the new technology, as well as to understand new workflows and data interfaces. This training can be costly in terms of both money and time, may involve external specialists, and can cause temporary dips in productivity as staff reach proficiency. These upfront and ongoing training costs can offset some of the anticipated savings from automation, especially in the early stages or in environments with high staff turnover.

The other statements aren’t accurate reflections of automation. It doesn’t remove all risk—new risks like cyber threats, system failures, or integration issues can still exist. It doesn’t guarantee 100% accuracy— automated processes can still produce errors due to data quality problems, configuration mistakes, or unforeseen edge cases. And change management is usually required to ensure processes, people, and technology align effectively during and after the shift to automation.

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