Reclaiming the Value of the “Gemba” in the AI Era: The Future of Physical Labor at the Intersection of QA, Tech, and Business -Insights from Industrial Praxis (1): The Japanese Perspective on Physical Labor

With the rapid evolution of Generative AI, white-collar roles—long considered “safe”—are being replaced at an unprecedented pace. Conversely, the “physical labor” sectors, such as logistics and construction, are facing severe labor shortages.
However, a paradox exists: “Why has the value of essential on-site work not been reflected in wages or social status?”
Based on the discussion series titled “Industrial Praxis,” this article explores the redefinition of physical labor and the source of competitive advantage for future organizations through the lenses of Quality Assurance (QA), technology, and business structure.

1. Business Distortion: Why “Value” Does Not Equal “Price”

The first hurdle is the disconnect between value and price within current business structures. Under market principles, an area with excess demand (labor shortage) should see a rise in wages. Yet, improvements in the treatment of frontline workers, particularly in transportation, remain stagnant. Our discussion identified two structural barriers:

• Lack of Economies of Scale: Unlike manufacturing, where automation maximizes per-capita added value, labor-intensive field services struggle to find similar leverage.
• The Absence of “Political Power”: Just as the nursing industry has secured better conditions through lobbying, price-setting in business is determined not just by value provided, but by the “negotiating power” (political leverage) of the industry.

Relying solely on frontline effort or QA activities has reached its limit. We have entered a phase where business model transformation and industry-wide positioning strategies are essential.

2. The QA Dilemma: Moving Beyond Standardization vs. Craftsmanship

To guarantee productivity and quality, one cannot avoid the conflict between “standardization/manuals” and “individual skill (craftsmanship).”
In many workplaces, Standard Operating Procedures (SOPs) have become mere formalities. When rules increase without an understanding of why a task is necessary, veterans often resort to their own “personalized” methods. While this poses a risk to QA, the “tacit knowledge” held by these veterans is undeniably valuable.

The key lies in the “externalization of tacit knowledge.” By using AI and technology to verbalize and digitize the subtle judgments and “knacks” of experts, organizations can foster a culture where following the standard leads to collective success. We must not reject craftsmanship; we must sublimate it into an organizational asset.

3. Re-integration via Tech: The Resurgence of “Acting Intuition”

As AI takes over logical thinking and administrative tasks, what unique value should humans provide? The keyword here is “Acting Intuition” (Kōiteki Chokkan), a concept proposed by Japanese philosopher Kitaro Nishida.

This is the idea that theory and practice are inseparable; the essence of a thing is revealed only through the act of doing. It moves away from the Western “Theory (Design) → Practice (Manufacturing)” divide toward a state where the mind and body are seamlessly connected.

Digital fabrication technologies, such as 3D printing, embody this “Acting Intuition” in modern business. 3D printers dramatically shorten the feedback loop between design (the brain) and prototyping (the physical). When what you think becomes a tangible object instantly, it dissolves the wall between design and manufacturing, creating a breeding ground for innovation rooted in physicality.

4. Organizational Theory: From Excessive Division to “Wholeness”

Industry has long subdivided processes into “Design,” “Procurement,” and “Manufacturing” in the name of efficiency. This has resulted in a loss of “Total Optimization,” leaving us with a collection of fragmented “Local Optimizations.”

The future requires a re-integration of processes. For example, a designer who understands procurement costs and manufacturing constraints can engage in monozukuri (making things) holistically. Technologies like “Gigacasting” in the automotive industry—which integrates numerous parts into a single casting—represent this move toward process integration.

We are shifting from an era of “Efficiency through Division” to “Value through Integration.” As technology expands the scope of what one individual can handle, the strongest competitive advantage will belong to teams (or AI-human hybrids) capable of overseeing the entire business process.

Conclusion: Toward the Fusion of Physical and Digital

In the future labor market, the binary opposition of “white-collar” (intellectual) and “blue-collar” (physical) will lose its meaning. Success will depend on how fluidly one can navigate between the “physical sensations” of the field and the “digital intelligence” of AI and data.

Getting your hands dirty, building things, and understanding the reality of the “Gemba” creates a unique, embodied value that AI cannot replicate. Why not take a small step today and reintroduce a “physical” element into your work or life? The seeds of new business models lie exactly where theory and practice merge.