Asia’s economies are poised to benefit greatly from the rise of artificial intelligence (AI), according to MIT Technology Review
· C-level executives across Asia believe that AI and robotics will significantly increase the value and efficiency of Asian business, as well as improve their own firms’ competitiveness.
· Executives from process- or technology-intensive sectors, such as retailing, ICT and manufacturing, are most positive about AI’s impact on their sector. However, executives from financial services believe that automated processes and machine-based transactions will destroy value in their sector.
· China, Korea, and Japan purchased nearly half the world’s total output of articulated robots in 2015.
· Most HR directors believe that the adoption of AI and robotics will result in substantial job losses in Asia over the next five years.
Singapore, 14 November 2016 – A new report released today by MIT Technology Review, “Asia’s AI agenda”, finds that Asia’s economies are set to benefit significantly from the rise of artificial intelligence (AI), but many believe the adoption of AI and robotics will result in substantial job losses in Asia over the next five years.
Technology advancements will improve businesses competitiveness, but least benefit those in the financial industry, as automated processes and machine-based transactions are likely to destroy value in that sector (Figure 1). While most HR directors believe that the adoption of AI and robotics will result in substantial job losses in Asia over the next five years, HR professionals also see opportunity for their own function to expand and oversee the management of both human and machine productivity.
AI’s rise will create a seismic shift in the processes that senior managers use to manage talent, growth, and productivity across nearly every industry sector. Asian businesses stand to leverage AI’s rise faster, thanks to the virtuous cycle created by Asia’s technology investments and the organic growth of big data. "The Asian academic scene is advancing quickly – what's more, entrepreneurs are returning from big companies in the U.S. to create their own domestic ventures," said Will Knight, Senior AI Editor at MIT Technology Review.
C-level executives surveyed and AI industry experts interviewed for Asia’s AI agenda are largely aligned in the belief that AI and robotics will impact every industry significantly, positively, and all at once. Rising investment in process automation in Asian manufacturing tends to focus much of the industry’s attention, given that three Asian countries alone — China, Korea, and Japan — purchased nearly half the world’s total output of articulated robots in 2015. But, importantly, survey respondents largely felt that most other sectors, from retail to logistics, would benefit equally from AI technology. AI industry executives believe that big data’s growth in Asia will allow autonomous and intelligent applications to proliferate across almost all industries in the region, more or less simultaneously.
But according to the report, while decision makers at Asian-based firms are convinced of AI’s benefits, most have not yet committed resources to capitalize on these beliefs (Figure 2). In order to capitalize on today’s AI and automation trends, Asian business leaders will need to adopt an attitude of extreme openness. This should manifest through a willingness to collaborate in data analytics projects and to share best practices and insight resulting from their own process automation efforts. Moreover, while these technologies may have a powerful impact on an individual firm’s competitiveness, the quest for competitive advantage cannot blind business leaders to the greater benefits of collaboration – in much the same way that competitive AI developers themselves are increasingly pooling resources to accelerate their collective progress.
Download the full “Asia’s AI agenda” report at: http://mit-tr.co/ai-asia and join the discussion on Twitter at #AsiaAI.
FOLLOW us on our Twitter
LIKE us on our FaceBook
SUBSCRIBE to us on our YouTube Channel!