KEY TAKE-AWAY
In those countries and companies that can, there is, will be and continue to be exponential acceleration in terms of tech and AI driven innovation. The pandemic, as with so much else, has exacerbated this pace of change inexorably.
The dominant narrative is AI (data) and Chinese, and within this privacy is a defining issue. Going forward, privacy issues, and governments’ varying responses to them, will dictate the future global economic landscape. Those countries (namely Europe) that choose to protect individual data by legislation will almost inevitably render themselves less competitive. There will be, at the very least, a data membrane (if not a wall) between different regulatory regimes. This is a fundamental challenge – EY’s response to which is to create dual ‘towers of technology’ either side of said barrier.
The concept of sharing data across systems within a particular sector is being recognized as a source of mutual benefit (for example across the food production supply chain).
In the financial services space, competition from a new set of big tech players is gaining traction (for example cascading, blog chain-based innovations). This disrupted landscape challenges the incumbents to exhibit adaptability to retain their historic competitive edge (based on size, access to capital, know-how etc). In this new landscape the capacity to scale is paramount and therefore, on condition they meet the challenge to transition, big looks like the ‘most competitive unbeatable combination’. That said there is still a cornucopia of opportunities for nimble and nuanced start-ups, that are better placed to take advantage of the shorter timeframe for success that characterizes today’s innovation environment.
Tech-induced disruption, at an ever- faster pace, is sector wide. 1) The pandemic provided the necessity and increased incentive. 2) Pre-existing and continually enhanced technology is providing the means. 3) The ability to change and adapt displayed by both individual consumers and societies as a whole confirms the direction of travel in the post-pandemic era.
Is there anything that risks slowing down this, tech driven runaway innovation train? For example, are there environmental limits – in terms of its impact on resources? The latter is as yet being given little consideration (this might have to change). More acute is a shortage of the right human resources to ‘man’ the AI machine. Radical situations require a radical response. EY are offering eligible employees the chance of fully-funded MBAs, in a bid to bridge the skills gap.
