We are excited to bring Transform 2022 back in-person July 19 and virtually July 20 – 28. By 2025, the World Economic Forum estimates that 97 million new jobs may emerge as artificial intelligence (AI) changes the nature of work and influences the new division of labor between humans, machines and algorithms. Specifically in banking, a recent McKinsey survey found that AI technologies could deliver up to $1 trillion of additional value each year. AI is continuing its steady rise and starting to have a sweeping impact on the financial services industry, but its potential is still far from fully realized. The transformative power of AI is already impacting a range of functions in financial services including risk management, personalization, fraud detection and ESG analytics.
Within the next decade, the world will see a major disruption of the workforce due to advances in artificial intelligence (AI) technology. According to a McKinsey Global Institute report, 375 million workers, or about 14 percent of the global workforce, may be required to shift occupations as digitization, automation, and AI technologies start to take over the workspace. In a separate 2018 report by the Organization for Economic Cooperation and Development (OECD), half of the global workforce is expected to be impacted one way or another by machine-learning technologies. AI technology will be at the forefront of the Fourth Industrial Revolution, and it will prove to be a far greater challenge than the ones that preceded it. If the world does not prepare, robots and technology could cause mass unemployment.
Pre Covid-19, it was estimated that UK employers were spending more than £6 billion per year to address the issues associated with internal and external skills gaps. Recruitment costs topped this substantial bill; indicating that some employers were opting for short-term approaches to'buying' talent rather than'building' it within their own organisations. To address the escalating issue of employability skills in the UK, a number of pre-pandemic reports highlighted that more and more organisations were becoming acutely aware that there would have to be a shift in mindset towards adopting sustainable, long-term workplace learning provisions to produce a more agile, loyal, motivated, and productive workforce for the future. In this respect, there was a trend emerging; one that was based upon the premise of moving away from economically impactful marginal gains towards a more sustainable culture of investing in the capability development of existing employees. The answers to why some organisations still struggle to address the skills gaps issues within their business are complex and, of course, have many facets.
Earlier this year, President Trump signed an executive order for the "American AI Initiative," to guide AI developments and investments in the following areas: research and development, ethical standards, automation, and international outreach. This initiative is indicative of the changing times, and how, as a country, the U.S. is learning to navigate the implications of AI. Leaders in the business world, specifically, are faced with the responsibility of equipping our employees with the skills necessary for paving long-lasting career paths, and the workforce must discover what will be expected as technology continues to disrupt the norm, and work as we know it. As a global business leader, an AI optimist, and a father, I find myself asking: What will make a career sustainable in 2020 and beyond? Will the future of education rise to meet the demands of the future of work?
RPA and AI undoubtedly create efficiencies, but with those efficiencies comes an added human responsibility: monitoring results and ejecting, if not preventing, biases. It is clear that 2020 will bring forth a tipping point in enterprise adoption of smart automation – artificially intelligent software bots that work with human workers to automate manual, repetitive tasks. Prior to the COVID-19 pandemic, more than half of U.S. businesses were already using this technology in daily operations. As businesses and governments continue to respond to the pandemic and the economic aftermath, automation will be even more pivotal as the pace of maturity accelerates, and the global economy reacts to it. According to the McKinsey Global Institute, automation and advances in artificial intelligence (AI) will lead as many as 375 million workers, or roughly 14 percent of the global workforce, to reskill themselves by 2030 – more applicable than before as industries look to speed their recovery.