The potential of AI: revolutionising global growth and trade
Beyond enhancing existing industries, AI is beginning to drive new markets. In healthcare, AI-driven diagnostics and personalised medicine are taking off, and algorithms capable of analysing vast datasets can identify patterns and suggest treatments with unprecedented accuracy.
The financial sector, too, is undergoing a transformation. AI analyses market trends, predicts economic shifts, and can optimise investment strategies. Robo-advisors use AI to offer investment advice based on individual risk profiles and financial goals, making professional financial management accessible to a broader audience.
This can, and has, led to the creation of jobs in certain sectors - with new healthcare products and services bring a requirement for people to operate and sell them; financial institutions need AI specialists to design and implement their AI-powered solutions and there will be a growing need for roles in AI oversight and management across a range of industries.
Of course, AI also threatens jobs, especially low skilled jobs that are more susceptible to automation. AI in the context of healthcare brings with it a number of ethical challenges, and there are concerns that having easy access to sophisticated investment tools in the financial sector may lead people to take too many risks; that regulation cannot keep pace with AI advancements in finance or healthcare (amongst other industries). Could the future lie in a hybrid model, combining the efficiency and innovation of AI with a sufficient degree of individual oversight?
Facilitating International Trade
On a larger scale, AI has the potential to play a crucial role in enhancing international trade by improving supply chain management and logistics. The use of AI can help to move goods efficiently across borders, reducing delays and lowering costs. It can enhance customs and border security, using advanced image recognition and data analytics to detect anomalies and flag potential risks.
However, harnessing AI in this way requires a multitude of other processes, systems and legislation - it cannot happen in isolation. The tech needs investment, it needs to be profitable and scalable, implemented securely and consistently within and between countries and governments need to work together to reduce political obstacles (Brexit is a good example!) to harness AI in this context. This is not to say it cannot be done, and it is already happening - but there is more to be done.
What’s Next?
AI’s potential to drive economic growth is huge, and it is already happening at pace. However, it is not without challenges. Concerns about regulation, safety, ethical implications, job displacement and security must be addressed to ensure that the benefits of AI are broadly shared and are not outweighed by the risks and downsides it carries. There’s work to be done for policymakers and industry leaders to collaborate and develop frameworks that promote responsible AI deployment while safeguarding individual rights and societal values.
Moreover, international cooperation is essential to harness the full potential of AI. Standardising regulations and fostering cross-border collaborations can facilitate the global exchange of AI technologies and expertise. This, in turn, can drive economic growth on a global scale, ensuring that all nations benefit from the AI revolution.
The success of AI in driving economic growth will hinge on our ability to address these challenges with thoughtful policy-making, international cooperation, and a commitment to responsible AI deployment. By ensuring transparency, fairness, and adherence to ethical standards, we can harness AI’s potential to build a more prosperous and equitable global economy.
Authors
Janzyl Go
