What area is not typically associated with the rise of automation and AI?

Study for the CFA Sustainable Investing Certificate. Use flashcards and multiple-choice questions; each question provides hints and explanations. Prepare effectively for your exam!

The correct answer pertains to the garment industry, where the rise of automation and AI does not typically result in increased labor demands. While automation and AI are transforming many industries, they often streamline processes, reduce the need for manual labor, and improve efficiency. In sectors like transportation, automation can lead to significant job losses due to the implementation of self-driving vehicles and logistics robots.

Conversely, the garment industry sees automation mainly as a means to enhance production efficiency, which can lead to fewer labor requirements overall rather than an increase in labor demand. The cycle of automation may lead to the relocation of manufacturing to regions with lower labor costs, thereby also influencing job dynamics in this sector.

Other choices represent areas where automation and AI typically lead to pronounced changes, such as the transformation of employment opportunities in information technology and the emergence of data privacy issues as digital platforms grow.

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