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After more than 80 years in the making, artificial intelligence (AI) has finally reached a point of inflection with the advent of generative AI. Gen AI can redefine industries, reshape the labour market and challenge the capabilities of both individuals and corporations.
As we navigate this rapidly evolving landscape, the need for strategic adaptation is becoming existential, encompassing reskilling initiatives for society, governmental financial and computation support, and corporate innovation.
The journey of AI began in 1943 with Walter Pitts and Warren McCulloch’s conceptualisation of the artificial neuron. Decades of fluctuating progress followed, marked by periods of optimism but eventually of stagnation, commonly referred to as AI winters.
Significant breakthroughs in the early 2000s, particularly with the use of graphics processing units (GPUs) to accelerate neural networks and set the stage for the current wave of AI optimism. However, it was the introduction of convolutional neural networks in 2012 that truly ignited the current AI revolution.
Gen AI, particularly large language models (LLMs) like GPT, LLaMA and Claude, are a new frontier in this evolution. These models have demonstrated capabilities far beyond the original objectives behind their development, influencing various domains through their interaction, reasoning, knowledge and generative capacities.
The rapid advancement of Gen AI presents contradictory challenges: its potential benefits are immense, but so are the risks and disruptions it can engender.
Gen AI’s influence extends across multiple dimensions, reshaping how businesses operate and how individuals perform their tasks.
Interaction and interfacing: LLMs excel in natural language processing (NLP), enabling unprecedented levels of interaction and interfacing. This capability has transformative implications for customer service, office administration and various service industries.
The automation of these roles not only increases efficiency but also introduces new application possibilities. For instance, customer service bots can now handle complex queries, and robots in restaurants can take orders and payments, enhancing efficiency and cost savings.
Reasoning: One of the surprising developments in Gen AI is its basic reasoning ability. While these systems don’t inherently possess reasoning skills, their large associative memory allows them to effectively simulate reasoning.
This capability is improving as researchers integrate more intentional logic facilities into AI systems. Such advancements promise to enhance decision-making processes across various sectors, from healthcare to finance.
Knowledge: Gen AI bridges the gap between unstructured and structured data, a breakthrough with profound implications. Techniques like fine-tuning and retrieval-augmented generation (RAG) enable AI to handle vast amounts of unstructured data, transforming it into actionable insights.
This development rekindles the concept of “knowledge management” in a powerful new way, potentially revolutionising fields that rely heavily on knowledge interpretation and application.
Generation: The generative capabilities of AI are already making waves in creative industries, as evidenced by the Hollywood Writers’ Strike over AI-generated content. Beyond creativity, these capabilities are impacting coding, engineering design and more.
The ability to generate complex content and solutions autonomously positions Gen AI as a disruptive force across multiple domains.
The integration of Gen AI into the workforce is reshaping the job market in significant ways. Unlike previous automation waves that predominantly affected blue-collar jobs, Gen AI is set to impact white-collar roles more profoundly.
Furthermore, since jobs that require cognition more than physical action tend to employ more women, women will be more impacted by Gen AI. These changes call for a proactive approach to reskilling and upskilling the workforce.
Labour economists argue that technological innovation can create new jobs through increased productivity, but the rapid pace of Gen AI advancements necessitates swift and comprehensive reskilling initiatives to avoid widespread job disruption, as well as to enable competitiveness.
The AI transformation within corporations will require more than incremental adjustments; it demands a fundamental redesign of business operations and strategies. AI is statistical and probabilistic, employees using AI will need to master risk management in decision-making processes.
Risk and Talent: Large corporations face significant challenges in adopting Gen AI due to the need for a new breed of risk professionals. Recently, an Air Canada chatbot went rogue and offered unauthorised deals to customers. Incidents such as this highlight the difficulties in managing AI-driven processes.
Smaller, more agile companies may navigate these risks more effectively, but they too require robust strategies to mitigate potential pitfalls.
SMEs can seize the opportunity: Small and medium enterprises (SMEs) have a unique opportunity to leverage Gen AI for competitive advantage. Unlike large corporations, SMEs can be can more quickly adapt to the quirks and advantages of Gen A.
However, they face barriers such as limited access to advanced AI technologies and the need for specialised skills. Governments play a crucial role in supporting SMEs through financial incentives, training programmes and affordable access to AI resources.
While Gen AI offers immense potential, it also poses risks related to cybersecurity and misuse. The sophistication of social engineering attacks, such as deep fake scams, highlights the importance of educating all employees about the risks associated with AI technologies.
Policymakers must take proactive measures to facilitate the Gen AI transition. Some key initiatives are:
Talent development: A multifaceted approach to talent development is crucial. This includes educating individuals on the basics of Gen AI, training technical staff to manage and implement AI technologies, and equipping leaders with the knowledge to navigate the strategic implications of AI adoption.
Supporting SMEs: An AI transformation service for SMEs can help these businesses thrive in the Gen AI economy. This includes providing training courses, networking opportunities and affordable consulting services. Governments should also consider grants, loans and incentives to support AI adoption in SMEs.
Democratising AI access: Ensuring affordable access to AI technologies is essential for SMEs. This may involve utilising open-source models, exploring innovative AI technologies that require fewer computational resources, and considering AI as equivalent to a subsidised utility.
The emergence of generative AI is a watershed moment in the evolution of technology. Its potential to transform industries, redefine job roles and enhance productivity is immense. However, realising these benefits requires a concerted effort from individuals, corporations, policymakers and nations. By embracing strategic adaptation and proactive measures, we can harness the transformative power of Gen AI, ensuring a prosperous and inclusive future for all. The time to act is now, as the AI revolution continues to gather momentum, shaping the future of business and labour in profound ways.
Originally published by The Edge.
“From the personal conversations I have had about digital banks, it appears that the people who have already signed up and taken advantage of all these great returns and stuff for now have been mainly the richer people, to be honest.”
According to the 2023 RinggitPlus Malaysian Financial Literacy Survey, 71% of the respondents said they could only save RM500 or less each month, while 67% stated their emergency savings could only last them three months or less.
Despite being cash-strapped, Malaysian households continued to allocate 60.7% of their income to consumption expenses in 2022, the Khazanah Research Institute points out in its report The Financialization of Our Lives: Values and Trade-offs, highlighting a shift towards spending rather than saving.
The report also said that more than half (55%) of Malaysians spend exactly or more than what they earn each month, effectively living paycheque to paycheque. This combination of low saving rate and insufficient emergency funds underscores the urgent need for improved financial literacy and education across the country.
With the recent launch of digital banks, which promise greater accessibility and financial inclusion, there is hope to foster better saving habits among the public, particularly the underserved.
Beyond the bottom 40% income earners (B40) and micro, small and medium enterprises (MSMEs), the digital banks should also consider other underserved communities such as the immigrants, refugees and unbanked. While these groups represent a smaller percentage of the population, they should not be overlooked.
The first step toward financial inclusion for digital banks should be reducing the requirements for proof of identification for access to their services. It should be noted that providing education and reaching out to underserved communities are key to achieving true financial inclusion in the country.
“I can see the value of not having to go to a physical bank for communities who live far away or are hard to serve outside of urban areas. But if the digital banks really want to be different from traditional banks, they need to actually do things that make sense for these communities. Fewer identification requirements and less paperwork would be an example of these,” says Melati.
In addition to promoting financial inclusion, digital banks face the challenge of balancing their social mission with the need to remain profitable. In their applications to the central bank, they are required to maintain minimum capital funds of RM100 million and be unimpaired by losses for the first three to five years, also known as the foundational phase. After this period, the required capital is increased to RM300 million.
Applicants for the digital bank licence had to provide comprehensive details on their deployment of technology as well as address cybersecurity issues and IT governance. During the foundational phase, a cap of RM3 billion is placed on the asset size of digital banks.
Ultimately, digital banks will need to generate sufficient revenue streams, such as through lending products or transaction fees, without compromising on their commitment to inclusivity, say industry players.
Boost Bank chief technology officer Steven Gan is cognisant of the challenge. He stresses that the bank is working to break down barriers to allow users who don’t even have a traditional bank account to open a digital bank savings account.
Gan says that on a recent work trip to Kuala Terengganu, he came across many potential users who were unfamiliar with digital banking and had limited financial resources.
“When we did on-the-ground interviews at Mydin Bukit Mertajam, of the 500 users who came in, 97% said they did not have RM2,000 on hand to begin with. We want to stitch together the ecosystem and get the right momentum of saving and spending behaviour for these underserved customers,” he adds.
Gan wants to offer guidance to the underserved segment and eventually encourage saving and investing literacy. “Through BoostMyMoney, we hold monthly campaigns to bring awareness to them on how their funds are being managed and to give them financial literacy because cash is still power in some parts of Malaysia.”
Digital banks will need to join forces with the central bank and government to educate users who are not familiar with digital payment services.
“We are working to allow foreigners to come in as well after we have all the robust anti-money laundering (AML) security tools in place, together with the National Fraud Portal (NFP) built by Paynet,” says Gan.
While the NFP and MyDigital ID system by the government are underway, there is still a gap in onboarding immigrants or foreigners due to their limited financial resources and lack of digital literacy. Traditional banks might consider them high risk, making it difficult for them to access financial services.
However, Gan sees this as an opportunity. “We have adopted a very stringent AML ruling to detect not just your transaction monitoring and behavioural pattern, but also your digital activity.”
Read the full article HERE.
Originally published by The Edge.
KUALA LUMPUR: Kesan kecerdasan buatan (AI) terhadap pasaran kerja adalah nyata dengan kesannya terhadap pemberhentian kerja dalam segmen tertentu, kata Ketua Pegawai Eksekutif, Presiden dan Dekan Asia School of Business, Prof Sanjay Sarma.
Beliau berkata, ada syarikat teknologi telah membangunkan pembantu AI yang boleh menggantikan pekerjaan di pusat panggilan.
Katanya, teknologi itu boleh beroperasi di 23 pasaran dengan berkeupayaan dikendalikan dalam 35 bahasa, 24 jam sehari, tujuh hari seminggu.
Malah, jelasnya, teknologi AI itu juga berjaya melayani pelanggan dengan lebih pantas, dengan masa penyelesaian menurun kepada dua minit daripada 11 sebelumnya dan terdapat juga penurunan sebanyak 25 peratus dalam pertanyaan berulang.
“Ia menggantikan kerja 700 ejen sepenuh masa,” katanya pada sesi plenari bertajuk ‘Data dan Kecerdasan Buatan: Memperkasa Masa Depan’ di sini, hari ini.
Sidang plenari itu sempena Persidangan Statistik Malaysia (MyStats) ke-11 2024 yang bertemakan ‘Data dan Kecerdasan Buatan: Memperkasa Masa Depan’ anjuran secara bersama antara Jabatan Perangkaan Malaysia, Bank Negara Malaysia dan Institut Statistik Malaysia.
Sanjay berkata, syarikat AI itu dianggarkan menjana keuntungan sehingga AS$40 juta dalam tempoh 20 tahun.
Justeru, katanya, kesan AI kepada pekerjaan adalah nyata.
“Kita berada di ambang sesuatu yang luar biasa, menakutkan, menggerunkan dan menakjubkan,” katanya.
Mengenai kesan kepada pasaran kerja di Malaysia, Sanjay berkata, impak AI ke atas pasaran kerja Malaysia akan sangat mengejutkan.
“Saya fikir Malaysia mempunyai, mungkin, lima tahun (sebelum AI memberi kesan kepada pekerjaan di negara ini),” katanya.
Lebih 1,000 peserta menghadiri MyStats kali ke-11 itu yang menjadi platform untuk ahli statistik, penyelidik, ahli ekonomi, pembuat dasar, ahli akademik untuk mengetengahkan idea baharu dan meningkatkan pemahaman bersama dalam bidang statistik, selain mewujudkan jalinan kerjasama dan rangkaian yang lebih baik.
Ia juga dapat meningkatkan lagi keberkesanan analisis dan penggubalan dasar kerajaan yang dibuat berdasarkan fakta.
Originally published by Berita Harian.
KUALA LUMPUR: The impact of artificial intelligence on the job market is real, the CEO of a business school has warned, citing the layoffs it created in the Philippines.
Sanjay Sarma, of Asia School of Business, said a third of the Philippines’s revenue comes from call centres, which businesses outsource to local residents.
He also said that recently, a Swedish fintech company developed an AI assistant that could operate in 23 markets, 24/7, in 35 languages.
The AI, which handled two-thirds of its customer service, managed to attend to customers faster, with the resolution time dropping to two minutes from the previous 11. There was also a 25% drop in repeat inquiries, he said.
It replaced the work of 700 full-time agents, he said at the 11th Malaysia Statistics Conference here today.
Sanjay said the company’s AI is estimated to drive profit up to US$40 million in 20 years.
The impact on jobs is real. We are on the threshold of something incredible, scary, terrifying, and wonderful, he said.
He said the impact AI would have on the Malaysian job market would be staggering.
I think Malaysia has, maybe, five years (before AI impacts jobs in the country), he said.
Originally published by Free Malaysia Today.
KUALA LUMPUR – Lebih 1,000 peserta terdiri daripada ahli statistik, ahli akademik dan penyelidik dari pelbagai agensi secara fizikal serta dalam talian menyertai Persidangan Statistik Malaysia (MyStats) ke-11 2024 di Sasana Kijang, Bank Negara Malaysia di sini pada Khamis.
Timbalan Menteri Ekonomi, Datuk Hanifah Hajar Taib berkata, persidangan ini merupakan antara platform yang membolehkan para perangkawan, penyelidik, ahli akademik dan pengguna data untuk memahami dan membincangkan hal berkaitan pengurusan data dan sosio ekonomi semasa di samping perkembangan teknologi yang semakin maju pada hari ini.
“Saya berkeyakinan bahawa melalui kertas pembentangan MyStats pada hari ini, kita dapat menambah input-input yang signifikan bagi memperkukuh proses asimilasi kecerdasan buatan di negara kita.
“Dengan menggunakan data yang kaya dan analitik mendalam, kita dapat membuat keputusan lebih baik, meningkatkan kecekapan dan menginovasi dalam pelbagai bidang, yang semuanya membawa kepada peningkatan kualiti hidup dan pembangunan berterusan,” ujarnya.
Beliau berkata demikian ketika menyampaikan ucapan perasmian pada persidangan tersebut dianjurkan Jabatan Perangkaan Malaysia, Bank Negara Malaysia dan Institut Statistik Malaysia dengan tema “Data dan Kecerdasan Buatan: Memperkasa Masa Depan” di sini pada Khamis.
Hadir sama, Ketua Perangkawan Malaysia, Datuk Seri Dr Mohd Uzir Mahidin dan Timbalan Gabenor Bank Negara Malaysia, Datuk Marzunisham Omar.
Sementara itu, menurut Mohd Uzir, tema persidangan kali ini mencerminkan peranan yang semakin meningkat dalam menggabungkan teknologi dan data untuk mencipta inovasi serta meningkatkan keberkesanan dalam pelbagai sektor di negara kita.
Jelasnya, ia bertujuan menyediakan platform untuk ahli statistik, penyelidik, ahli ekonomi, pembuat dasar, ahli akademik untuk mengetengahkan idea baharu dan meningkatkan pemahaman bersama dalam bidang statistik, selain mewujudkan jalinan kerjasama dan rangkaian yang lebih baik.
“Ini dapat meningkatkan lagi keberkesanan analisis dan penggubalan dasar kerajaan yang dibuat berdasarkan fakta.
“MyStats ialah platform untuk mengumpulkan ahli statistik, pembuat dasar dan pengamal statistik terkenal yang memberikan pelbagai manfaat kepada komuniti statistik,” ujarnya pada persidangan berkenaan.
Terdahulu, persidangan bermula dengan sesi ucap tama yang membincangkan dengan lebih lanjut berkenaan tema persidangan disampaikan Ketua Pegawai Eksekutif juga merupakan Presiden Asia School of Business, Profesor Sanjay Sarma.
Persidangan kemudiannya diteruskan dengan dua sesi forum menghuraikan perihal gaji progresif dengan membincangkan pandangan majikan dan penyelidik berkaitan pelaksanaan gaji progresif dan komitmen kerajaan bagi mereformasi pasaran buruh dengan matlamat untuk meningkatkan pendapatan pekerja selari dengan peningkatan produktiviti.
Pengenalan dasar baharu ini akan menjadi pelengkap kepada inisiatif gaji sedia ada iaitu perintah gaji minimum dan sistem upah yang dikaitkan dengan produktiviti (Productivity Linked-Wage System – PLWS).
Forum kedua adalah mengenai kecerdasan buatan (Al) dan dilema kehilangan pekerjaan bagi membincangkan berkenaan kecerdasan buatan (Al) yang telah membawa perubahan besar dalam era Revolusi Industri 4.0 (IR 4.0).
Selain itu, persidangan ini turut mengiktiraf sumbangan pengamal statistik melalui anugerah “Mystats The Best Young Statistician Presenter”, “The Best Oral Presenter” dan “The Best Poster Presenter” sebagai penghargaan dalam mengiktiraf bakat mereka dari segi penyelidikan dan penghasilan statistik berimpak tinggi.
Sebelum ini, Jabatan Perangkaan Malaysia (DOSM) telah melancarkan OpenDOSM NextGen sebagai medium menyediakan katalog data dan visualisasi bagi memudahkan pengguna menganalisis pelbagal data, OpenDOSM NextGen adalah platform perkongsian data sumber terbuka dan boleh diakses melalui portal https://open.dosm.gov.my.
Dalam masa sama, DOSM sedang menjalankan banci pertanian dan juga survei pendapatan dan perbelanjaan (HIES) POSM juga akan menyambut Hari Statistik Negara pada bulan hadapan dan Sambutan Jubli Intan Ke-75 Tahun DOSM yang akan berlangsung di Pulau Pinang November ini.
Originally published by Sinar Harian.
Staying updated through learning and training will help employees deal with concerns about artificial intelligence (AI).
Asia School of Business Assis- tant Professor Alex Eng said people became frustrated with technology at work because they expected it to be perfect.
He added that this disappoint- ment arose when Al or machines made mistakes, leading to a per- ception of these tools as flawed.
“When people make mistakes, we would say ‘to make a mistake is human’, but when it comes to machines making mistakes, we call it ‘flawed,” he told the ‘New Straits Times’ recently.
Eng said it was crucial to educate employees and managers about the nature of Al, its capabilities and the reasons behind dissat- isfaction with technology if they wanted to implement it in their workspace.
He said training should focus on setting realistic expectations and understanding how to interact with Al, and helping employees and organisations adapt to and man- age technological tools better.
He said employees and manag- ers needed to be educated about the basics of Al, including what it was and the ability required to interact with it.
“Businesses must understand the factors that lead to dissatisfaction with Al, especially the differences in how people perceive mistakes made by Al compared with those made by humans.”
He added that companies should train their employees to recognise that the expectations for Al and human responses differed, such as the time taken to provide advice or solutions.
“Training boosts employees’ per- ception of Al, making it easy to use and useful by increasing accessibility and relevance to their tasks.”
Eng said it could also help build confidence and reduce computer anxiety.
Read the full article HERE.
Originally published by New Straits Times.
Since 2017, there has been a 38% increase in family offices worldwide, with the Middle East becoming a popular jurisdiction.
Leading family businesses in the Middle East have been evolving over the past two decades. As patriarchs age, they have prioritised reorganising their management structures and adopting corporate governance and family protocols. This ensures orderly successions and smooth transmissions of businesses to the next generation, particularly given that only 13% of family businesses survive into the third generation.
A third of family offices globally are currently in the process of handing over responsibilities to a new generation of leaders, and more than a quarter expect to do so soon. In the Middle East, an estimated Dh3.67 trillion ($1 trillion) in assets will be transferred to the next generation during the next decade.
These families have also made a strategic move to separate management from ownership, delegating responsibilities to professionals and staying remote from day-to-day operations. This approach infuses businesses with new ideas while preserving the family’s strategic oversight and long-term vision.
“Family enterprises are evolving as families evolve—especially when wealth passes between generations, for example, when members become adults and, in turn, owners and/or employees of the family business,” noted Niels Zilkens, Head of Wealth Management, Middle East, UBS Global Wealth Management. “The rapid pace of change and constant need for innovation in today’s market can make these evolutions more challenging, however in our experience, those with well-defined values are best placed to succeed.”
Opinions differ on the best approach. “Many professionals believe that separating management from ownership is the optimal strategy, as it allows for professional management while maintaining family control,” noted Mazen Boustany, Partner at Baker McKenzie LLP. “Conversely, some argue that having ‘skin in the game’ is better, asserting that the direct involvement of family members in management ensures a stronger commitment to the business’s success.”
Succession planning has several advantages for families and their organisations. It prepares both for leadership transitions and helps ensure a seamless handover, knowledge transfer and risk mitigation. Industry experts see this occurring more frequently as family offices collaborate, sharing knowledge more openly with peers.
This matches talent development with business goals, ensuring a skilled workforce aligned with family values and ready to drive long-term performance. “A family’s planning efforts should begin with mentoring, coaching, and deciding which family member is best placed to take the leadership reins for the next generation,” explained Adam Ladjadj, Founder of The Emirates Family Office Association. “This process typically begins by involving the younger generation from an early age, cultivating a leadership mindset that naturally integrates family values with innovation.”
“Equally important is giving future family business leaders space and freedom to be creative, experiment, and innovate,” he added. “This balance is vital for an optimum succession strategy, allowing the business to evolve while staying true to its core values.”
Currently, 68% of next-generation family members hold advanced degrees in finance or business, up from just 30% a decade ago. This educational trend ensures that future leaders are equipped to drive innovation. Moreover, next-gen family members are now involved in 65% of family businesses, contributing to key operations and values. This hands-on approach provides valuable practical experience through mentorship and execution, facilitating the transfer of family values and business acumen while encouraging fresh perspectives on innovation and growth strategies.
Since 2017, there has been a 38% increase in family offices worldwide, with the Middle East becoming a popular jurisdiction. The increased focus on succession planning and long-term stewardship aims to secure lasting legacies and family heritage for the next generation.
“Traditionally very discreet, family offices are coming out of the shadows and becoming an attractive structure for managing private/family capital,” stated Ladjadj. “Family offices’ increased visibility has accompanied their strategic transition from local wealth custodians to dynamic entities actively seeking investments and partnerships.”
Communication and decision-making become more complex when families grow and develop as new members and technologies are introduced. These steps must be guided by a clear governance framework with processes and principles that ensure efficient operations. A “family constitution” or “family charter” should describe the family’s values, principles of engagement in the business, decision-making and communication processes, and family activities.
“This clarifies to family members where they fit in the enterprise and what that means for them,” explained Zilkens. “It defines, for example, how they can interact and influence the rest of the family or what role they can play in respect to ownership or management. Finally, it helps families balance everyone’s interests and ambitions and avoid discontent.”
On the investment side, the family should define a professional investment policy that aligns with its values. Such a policy sets out clear goals, rules, and processes for investing. It serves as the basis for decision-making on asset allocation or key investment decisions by the family’s investment committee.
Since 2018, 35% of family offices have adopted AI and machine learning for risk assessment and asset allocation, preserving the family’s control over wealth management decisions while leveraging technology for improved performance. Cybersecurity investments have also risen, reflecting a growing commitment to safeguarding family wealth and data in the digital age.
“They have not escaped the disruptive aspects of the digital revolution, and those thriving most have embraced tech advances such as automation, data analytics, artificial intelligence (AI), and fintech innovation,” Ladjadj added. “Modern tools that enhance connectivity and communication between family members are crucial. Heritage can also be protected by preserving historical records, documents, and values in digital formats, ensuring easy access for future generations.”
Nearly 57% of family businesses in the region prioritise improving their digital capabilities, compared to 44% globally. Over the past decade, there has been a shift in portfolio composition, with traditional sectors like real estate and commodities decreasing and a rise in alternative investments, particularly private equity and venture capital.
“This reallocation reflects a growing appetite for innovation while preserving a strong foundation in traditional assets,” stated Anuj Goel, SEO, Century Private Wealth. “There is a rising integration of modern sustainable practices, with 93% of family businesses incorporating Environmental, Social, and Governance (ESG) criteria into their investment strategies.”
Family wealth transfers require strategic planning, and experts see families increasingly seeking external support. This ensures that planning is done in a professional manner while alleviating some of the emotional biases that naturally occur.
Many UAE family businesses work with dedicated family business advisory firms. Some family members may resist outside involvement in family matters, so companies often involve them in the selection of advisors to build trust.
“The role of external advisory and mentorship can be critical in professionalising the succession planning process for UAE family businesses,” stated Asad Ata, Associate Professor of Operations and Supply Chain Management at the Asia School of Business. “They can help address different facets of succession planning for family businesses.”
Succession planning and the role of family offices have become crucial amid recent global instability. In the Middle East, there is a growing trend of establishing family offices to separate business operations from private family wealth.
The looming wealth transfer between generations will see up to $70 trillion of private wealth bequeathed, presenting challenges such as inheritance laws, investment strategies, and conflict. It is vital that families do not face these challenges alone.
As wealth transfer accelerates, families increasingly demand sophisticated services and support. “We see a growing awareness for education of the next generation among wealthy families in the Middle East, as well as increasing interest in professional family office services based on international best practices to retain control over the family’s wealth,” noted Zilkens. “Often, family offices are organizationally separated from the family’s operating business.”
Advice and guidance for Middle Eastern families is vitally important. Up to 80% of the region’s private sector involves family businesses. Succession planning has evolved significantly as more families recognise it as a crucial tool within their family offices.
Succession planning guarantees the retention of identity, culture, and mission, even when key figures depart. Experts are necessary to navigate challenges in professional disciplines such as tax, legal, investments, real estate, and finance. External advisors and mentors are also essential in facilitating tough conversations about succession within families, offering impartial advice and ensuring fairness and openness during difficult moments. “The business world has many examples of both well-handled successions and poorly managed ones,” stressed Ladjadj. “The latter often stem from poor or non-expert advice – and these are the case studies that make the headlines.”
Read the full article HERE.
Originally published by Finance Middle East
The fate of the world has been up for debate ever since the launch of ChatGPT almost two years ago. It seems that every time I open a news or social media app there is another article about the doom and gloom that the bot will bring. And, while I laugh, the fact is that ChatGPT could change education in many ways, potentially ways we currently can’t even imagine, considering how fast it’s progressing.
The more Artificial Intelligence (AI) develops, the more questions people have. Is it going to affect jobs? Which jobs, and how? A report from Goldman Sachs claimed that AI could replace an astounding 300 million jobs.
In terms of which jobs are most likely to be affected, that answer seems to change a lot. But haven’t we already seen jobs replaced by technology? How often do you try to contact customer service and find yourself calling your details out to a bot on the other end of the phone? Or, worse, when you have to ‘chat’ to a bot via a text-like system.
The multiple news articles about ChatGPT all had one thing in common: doom and gloom. Personally, these stories remind me of two things: the Charlie and the Chocolate Factory scene where everyone was dismissed from the toothpaste factory because robots could now do their jobs for them, and the Black Mirror Christmas special where the woman becomes an Alexa-like object.
Neither option is sounding too attractive!
OpenAI’s chatbot, ChatGPT, can provide more than just a simple answer to a question; it gives the impression that it is really thinking, creating and potentially even empathizing. The site has grown rapidly, with 2.5 billion site visitors in the last three months alone. It’s worth remembering that ChatGPT hasn’t even reached its second birthday yet, so we really don’t understand how big it is going to be.
Since ChatGPT’s launch, companies such as Microsoft and Google have released their version of the bot, in order to keep up with their new competition. It is safe to say that since the arrival of ChatGPT, the internet is no longer the same.
With the advancement of AI capabilities, one of the biggest concerns was the dangers AI could present.
It seems to be designed to deliberately deceive users. Almost every day there is a different scam in the news, such as the recent scam calls that have terrorized people online. More worryingly, the new “deepfake” images that have been going viral present a whole new threat. Some have been used as propaganda, such as Trump’s photos of Kamala Harris or Taylor Swift. But others are being used in even more sinister ways, such as deepfake porn. There is no doubt that AI and ChatGPT present a vast range of incredibly dangerous and negative developments as well as positive.
The CEO of Open AI, Sam Altman, openly admits that the need for regulations around AI is vital. He spoke to the US Congress in May last year about his creation, and the ways he believes it should be used and handled. He advocated for an independent agency to oversee all AI models before they are released and wants the most powerful models to adhere to licensing, testing and safety requirements.
Every country will do things differently. Businesses will need to work closely with the government, and will therefore look to business schools and their graduates for information to do so.
Since Altman’s pleas, and the ever-growing evidence to support his worries, the European Union has created their first ever legal framework on AI, which addresses the risks of AI and positions Europe to play a leading role globally. But what does this really mean?
The law, known as The AI Act, places restrictions on what are considered to be technology’s riskiest uses. Therefore, it would curtail the use of facial recognition software, and require the creators of AI systems such as ChatGPT to disclose more about the data used to create their programs. The final version of the law was published in the EU Official Journal in July of this year, proving that the EU is still further ahead in the process of regulating AI than its global counterparts.
Policymakers from all around the world are now racing to control the evolving technology, one that is growing more rapidly than any of its predecessors. In the US, the White House had released policy ideas that include rules for testing AI systems before they are made publicly available. Governments near and far are also hoping to take some control over how the makers of AI will use data, and how they will enforce privacy laws.
Part of the problem when addressing safety and responsibility in the creation and the use of AI is that it changes so rapidly that effective regulation of AI can often become outdated too quickly.
Naturally, the regulations are facing scrutiny from some industries, with one tech group claiming that if the regulations are too broad, they could prevent further innovation in the world of AI. And whilst Altman has been asking for regulation, he also believes the EU’s proposal might be difficult to comply with.
Ethics in AI is a complex issue, and Professor Zorina Alliata from Open Institute of Education (OPIT) makes the point that ethics in AI is still developing. “Generative AI will create new content based on chunks of text it finds in its training data, without an understanding of what the content means. It could repeat something it learned from one Reddit user ten years ago that could be factually incorrect. Is that piece of information unbiased and fair?”
Regulation in AI starts from the bottom, and from the people responsible for it, says Alliata. “If you look around the table and see the same type of guys who went to the same schools, you will get exactly one original idea from them. If you add different genders, different ages, different tenures, different backgrounds, then you will get ten innovative ideas for your product, and you will have addressed biases you’ve never even thought of.”
In terms of safety and responsibility when using AI, there is a long way to go and many more debates to be had. For now, we must look to education to help us understand it. Future leaders are going to need to understand AI in order to create and maintain policies, and use it in the right areas. This is where we look to education leaders. They are shaping the minds of the next generation of leaders: they should use it, teach it and engage with it. The sooner it is utilized, the better. That way, the regulation can be based on fact and experience, rather than ‘what ifs’.
Higher education institutions are doing all that they can to learn about AI in order to prepare their students for the world of business. Similarly, companies are looking to business schools for answers. Right now, it is all about learning and adapting, after all, in the grand scheme of things, ChatGPT is still only in its early phases.
In fact, AACSB’s 2022 business trends report stated that upcoming technological advancements, such as VR, would make waves in universities and help them to become more diverse. The benefits of introducing AI into the classroom seemed huge. Since then, conversations around AI tools have become less about what AI can do for us, but instead what it can do to us. AI tools have surpassed everyone’s expectations, with their capabilities ranging from defeating you at chess to acing the GMAT. So, where do education leaders stand on the topic?
To avoid disaster, schools should look at how they are using human faculty. Do they have the right knowledge? Can they adapt, and how quickly? Getting ahead of AI will be the most effective antidote to the media’s fearmongering.
For Sanjay Sarma, the CEO, President and Dean of Asia School of Business, the best option is to take control now. He states that AI and ChatGPT have the potential to “make individuals superhuman, but much like the domestication of the horse, it is all about those that learn to ride.” Therefore, if we adapt now and learn how to use these tools within education, it does not have to be scary. He believes that this is the best time for an educational revolution. “In a post-GPT world, the system is capable of doing well. It is human instinct that remains. So, classroom learning needs to be revolutionized.”
His sentiments were echoed by Professor Reza Etemad-Sajadi from EHL Hospitality Business School, who said “It would be a mistake to see it as a threat and, regardless, we have no choice. We will have to adapt to this kind of technology in the future.” By fearing AI, we are only delaying the inevitable. It is here to stay, and the sooner we adapt and learn how to use it the better the outcome will be.
For Phanish Puranam, Professor of Strategy and the Roland Berger Chaired Professor of Strategy and Organization Design at INSEAD, the future of AI in Business Schools is bright. “As I tell my students, they should worry less about ChatGPT taking their jobs (at least today), and more about somebody who knows how to use it taking their jobs!” However, he warns students that if we don’t adapt and change with AI and ChatGPT that we will end up “losing human-centricity in organizations of the future.”
The more we adapt to using AI in education, the more we can prepare to use it in the future, which will prevent our worst fear of AI taking over. “I am a lot more optimistic for business schools than for societal impact at large.”
As we know, AI bots will answer almost any question you ask it. By doing so, they provide a learning tool for those who want to use it to explain things they struggle to understand. Russell Miller – Director of Learning Solutions and Innovation at Imperial College Business School Executive Education, believes that students can utilize this for good.
He says: “Brainstorming/ideation may be drastically improved by incorporating wild and unorthodox ideas from generative AI that might inspire people to come up with interesting new products and services.”
Creativity in education, particularly that of business education, is the way forward. If we can make use of AI to help us to become more creative, society will improve. The world of business education needs to keep up with technological advancements in order to progress, and to prepare students for the world they are going to enter.
For now, humans must remain in the driving seat. We can’t allow AI to lead us, we must lead it. However, we need to be capable of thinking critically, according to Professor Francisco Veloso, Dean of INSEAD, “The already important skill of critical thinking will become much more salient, a must in terms of education.” Like his peers, Professor Veloso can appreciate all of the good that AI will bring, but he is correct in his concern for the need for critical thinking being used alongside AI.
As we approach ChatGPT’s second birthday, it is worth looking back at how far we have come even since then. The conversations being had have a more positive spin, and are full of wonder. We are here now; we can’t go back. There is no choice but to adapt to AI, because it can’t be undone.
While it took everyone by surprise, maybe we should be asking ‘what’s next?’ For the schools that get it right, the sky truly is the limit. With the right attitude, the right training, and the right research, this very big change could perhaps be the making of us.
By Georgina Tierney
Originally published by BlueSky Thinking.
It’s no secret that technology is transforming business education at a faster rate than ever. At the heart of this digital transformation are exciting advancements in AI, the Internet of Things (IoT), and biotechnology — just to name a few.
As the business landscape shifts, B-schools are jockeying for position, rolling out different learning formats to accommodate students from all corners of the world. According to its dean, Asia School of Business, based in Kuala Lumpur, Malaysia, is stepping up to the challenge, blending traditional and digital learning while maintaining focus on flexibility, accessibility, and cutting-edge educational frameworks.
“It is, in my view, a matter of time before students demand an even greater degree of agility,” ASB Dean Sanjay Sarma tells Poets&Quants.
ASB has offered their MBA in collaboration with MIT Sloan for the past ten years, and recently redesigned the program to a 12-month format. The program is taught with signature MIT flair, emphasizing practical, real-world experiential learning within industries and organizations across Asia and the U.S.
With roots from MIT and developed at ASB, their hybrid ACE (Agile Continuous Education) program incorporates both video learning and live sessions, that leads to either masters programs or specializations.
At the forefront of the program is Sarma, the Fred Fort Flowers and Daniel Fort Flowers professor of mechanical engineering at MIT, who is not only ASB’s dean but also its CEO and president. He and his ASB colleagues are preparing students to face global challenges during this era of dramatic digital transformation, integrating advanced technologies and AI into the curriculum in a way that other institutions of higher learning will inevitably seek to emulate.
At the core of everything they do is embracing the mutability of business education — essential at a time of great and rapid change. “There are so many things that could change — what are we teaching, who is teaching it, do we have the capacity to teach it,” Sarma says. “ASB is particularly keen on action learning projects, so we put students in the field — an MIT concept.”
Below, see highlight from Poets&Quants’ interview with Sarma, edited for length and clarity.
It’s about disintegrating and reintegrating. Let’s say you wanted to learn about AI, crypto or carbon credits. Where do you go?
What we are doing is creating these hybrid courses where you watch the videos when you can, such as on the weekends. You don’t have to leave your job – you watch the videos when you can. You’re a weekend warrior and you master the topic when you can.
There are a few different levels. First, much of what professors use is automated, and a lot it is customer service based.
The next is in using AI to generate codes to write classroom games and simulations.
The third is using AI as a tutor. It can ask you questions, and you as the student can ask it questions.
The other thing about AI is, it’s going to be something you have to retrain yourself in every six to nine months because every thing has changed so much. I spend about two to three hours a week reading up on the latest myself.
The faculty have lots of discussions about AI, and we are small, so we can do that. The systems naturally absorb AI. AI tools creep in even for those professors who don’t use it often. You just have to be open-minded right now.
We are fundamentally rethinking our curriculum around technology.
ASB students spend weeks at a time at MIT. We introduced AI as a course and we also have a data science course.
That’s another thing for professors – they have to fundamentally rethink their curriculum.
The second piece of this is what we are doing – developing agile continuous education with our hybrid courses, which are micro-credentials that are modular, stackable and transferable to our MBA or Executive MBA, or specializations in areas such as sustainability or organizational management.
Sanjay Sarma: “It is, in my view, a matter of time before students demand an even greater degree of agility”
Business is changing so fast, and traditional business schools teach what needs to be taught right from the front lines.
Is the MBA worth it? These tools mean that there are so many new delivery methods. Do you want to be a movie theater in the age of Netflix? That’s the question. Adjust and adapt.
There are so many things that could change — what are we teaching, who is teaching it, do we have the capacity to teach it. ASB is particularly keen on action learning projects, so we put students in the field — an MIT concept.
Its not easy. It’s very difficult to do. A lot of these fields have evolved over a hundred years and there’s a playbook on how to teach it.
The fundamentals don’t change much, but pretty much everything else changes when technology changes so rapidly. Take marketing, before and after TikTok. There’s a difference in the choices you make and the way you segment customers. Everything changes.
With my own technical work, I’ve changed the way I operate within the last three months. I’ve changed the way I write documents, the way I develop curriculum, the way I interact with my colleagues, the way I do research, and the way that I interact with my staff has changed.
The way I take notes, the way I do follow ups. I travel extensively, the time it takes me to plan travel has been cut in half. I use Chat GPT, Perplexity and other tools. They all make serious mistakes. But I have achieved a level of expertise in these areas. I learn things faster now – things that would have in the past taken me weeks and months to learn.
Everything gets faster — it’s game-changing.
100%. If you’re working at a bank as a young person, you’re going to have to take on challenges like how to use large language models in customer service. How do you address the risks of large language models, and what do you do when a large language model makes a mistake?
Same with modern payment systems, crypto, carbon credits, I could name a hundred other similar examples. It’s really important because the vast majority of graduates are going to be at the forefront of a very significant change.
Originally published by Yahoo Finance.
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