Today, markets and businesses and the nature of work are rapidly being reshaped by transformative digital technologies, notably artificial intelligence (AI). At this stage, we do not yet understand the full extent to which AI will transform the way we work and live our lives. What is clear though is that the scope and pace of advancements in AI are intensifying and can take the technological transformation to a whole new level. This has sparked an intriguing discussion about the potential for major societal changes in the next 5-10 years, that go well beyond what we have seen to date.
To exemplify this rapid advancement, one only has to look back to last year, in 2023 when Chat GPT took the world by storm. Interestingly, Charlie Warzel wrote for The Atlantic that OpenAI was not expecting ChatGPT to be “much more than a passing curiosity among AI obsessives on Twitter,” but it surpassed expectations quickly. Within the first five days of its debut, 1 million users signed up. It now has 180 million users and an IQ of 155 (for context, Einstein had an IQ of 160 and the average human has an IQ of 100) with potential to double its IQ every six months. AI models already outperform humans on several benchmarks, including standardised reading tests, IQ pattern recognition tests such as Raven’s Progressive Matrices and display strong language and reasoning abilities. And this is only the beginning.
From a historical perspective, AI technology itself is not a recent innovation but one that has been around for about 70 years. The emergence of ChatGPT on the scene last year, is a result of the “tipping point” of years of experimentation and development of key technologies coming together, with computational power finally reaching a level capable to unlock that potential. But for millions of users who experimented enthusiastically with ChatGPT since its debut, it had successfully captured our imagination on the potential of AI for our everyday work and life. It was a defining moment and the wake-up call that AI is no longer a technology of the future. AI is here and is rapidly advancing and will impact every industry in one way or another.
The future of capital markets, as an industry, will also be shaped by the integration of AI. AI-driven technologies such as robotic process automation (RPA), machine learning (ML) and natural language processing (NLP) can facilitate companies with complex thinking processes such as predictive analytics, sentiment analysis, rapid execution of investment strategies, potential fraud detection and sophisticated customer service chatbots. In the fast-evolving field of environmental, social and governance (ESG) integration, AI has the potential to become an integral tool in ESG reporting and management for businesses and capital market professionals. In 2023, ICMR produced a report “ESG Integration in Malaysia: Navigating Challenges and Embracing Opportunities for a Sustainable Future” which highlighted that one of the key challenges to ESG integration is the complexity in sustainability reporting. This is due to the constantly evolving ESG reporting standards, diverse stakeholders and lack of a universal approach which makes it challenging for companies and investors to determine which standards to adhere to. Within this context, AI has the potential to help ESG and capital market professionals sift through voluminous sustainability reports and collect data to generate relevant ESG information at a much faster speed, navigate the complex regulatory landscape as well as meet different ESG KPIs for diverse stakeholders. Microsoft, for instance recently launched Microsoft Cloud for Sustainability, operating at the intersection of sustainability and AI, to help produce ESG data analytics and insights for faster and more impactful decision-making and reporting.
Understandably, this presents a vital question for businesses and professionals: how will AI affect and transform the industry? And with further accelerations in AI developments, what kind of jobs and skillsets are still relevant in the future? Google’s CEO recently announced that more than a quarter of all new code at Google is generated by AI, potentially reducing demand for entry and mid-level positions in areas like software development and information technology, deemed as “high-in-demand” courses not too long ago. Will upskilling be enough or will it require a reskilling revolution? Cognizant partnered with Oxford Economics to create an economic model to quantify Generative AI’s impact on the future of work, and estimates that the technology will disrupt 90% of all jobs in the coming decade. This will require strategic reskilling programs and even a new educational approach at a pace and scale never seen before.
Broadly speaking, you can be either a techno-optimist or pessimist on the impact of AI on the skills of the future, depending on where you stand on it. The optimists predict AI will create a boom to productivity, to innovation and to business growth. Automation of routine and predictable tasks will allow us to focus more on higher-level skills such as stakeholder relationship management, idea generation and creative thinking, critical analysis such as integration of AI-driven ESG data and analysis into future forward business strategies – the cognitive skills humans are better at than AI. The human touch-a strategic mindset based on the ability to connect multiple perspectives combined with a more nuanced understanding, effective communication, critical thinking, creativity, and engagement skills-remains irreplaceable.
The pessimists say despite the potential for AI to improve the way we work; job displacements will come at a much faster rate than the creation of new jobs which require more complex and higher-level skills. Economic concentration in the hands of the very few owners of capital and top executives will be exacerbated, and this will further compound skills gaps and income inequalities, disproportinately affecting the vulnerable segments of society- smaller businesses and workers. There are valid concerns about the companies that develop these AI technologies, and if they are developing it for the common good and if regulations can keep pace with the developments to ensure they benefit overall society. In December 2023, the U.S. Financial Stability Oversight Council (FSOC), composed of leading regulators across the government, classified AI as an “emerging vulnerability.” In the report, regulators worry that some AI models operate as “black boxes” – meaning their inner workings are impenetrable to outsiders. Without full comprehension of the technical underpinnings of the AI system, it will be a challenge to understand the potential benefits and full risks of AI.
I think both sides hold a piece of truth. There is a well-worn tendency to treat every new technological development as either a sign of our saviour or of imminent doom. They are neither. Instead, they are catalysts of change. However, preference for the status quo or a fear of the unknown is a common behavioural bias, in all applications of life, especially when it comes to trying something new. Despite the potential for AI to improve the way we live and work, the prevailing narrative is commonly centred on the potential displacement of jobs, a reflection of the general scarcity mindset we live in. The antidote is again, rooted in our belief of our own intrinsic ability to seek and discover new knowledge, to pursue lifelong learning, to educate ourselves of AI’s capabilities and limitations to alleviate those fears.
As we move toward a more human- AI integrated world, every organisation must consider what it means for them to be “future-ready”. AI is reshaping our work and interactions, evolving faster than ever before. In response, leaders are investing heavily in digital transformation. But adopting new technology is only part of the solution- true readiness requires investing in people. A recent OECD report, “The Impact of AI on the Workplace” (2023), reveals an intriguing insight: while AI skills are indeed valuable, employers across industries place even greater emphasis on uniquely human skills—those that AI cannot replicate. Critical thinking, emotional intelligence, judgement and discernment for complex decision-making are becoming more essential, especially as AI takes over routine tasks. These skills will shape the roles of tomorrow and ensure your team can effectively collaborate with AI, maximizing both human and machine potential.
Organizations that truly embrace this change will move beyond just training employees in new tech skills—they will invest in holistic development that prepares their people to collaborate effectively with AI and with each other as every individual redefines their roles. This forward-thinking approach allows organizations to remain agile and innovative in an environment of constant change. As the human-AI partnership matures, it’s the organizations that have dedicated time and resources to cultivating these unique human capabilities that will navigate and lead in a future where AI is ubiquitous, ensuring that technology serves to elevate, not diminish, our human potential.
