Artificial Intelligence. Machine Learning. Cognitive Engagement.
Odds are, you have not only heard these terms but also found yourself inescapably surrounded by them. These strides in technology may just seem like arcane terms limited to a few fields, representing a reality that is only likely to exist far into the future. However, what if I told you that artificial intelligence (AI) is heralding fairer access to credit, fix disrupted Asian supply chains and drastically improve the ease of doing business in Asia? Yes, this is all true.
The future holds that manufacturing industries will likely become ‘intelligent’ industries, this means that industries would be characterized by autonomous sensing, IoT (Internet of Things) integration and numerous other functions performed by intelligent technology. Infact, Asian countries such as China and Japan being world leaders in Research & Development expenditure. This signals an opportunity for 180 degree turn for high cost inefficient industries such as healthcare, government administrative organizations etc.
According to OECD, one of the biggest challenges that Asian industries face is a difficult in accessing credit or finance. Nevertheless, many AI professionals are working towards creating softwares that will make bank loans more fair and attainable for SMEs (Small and Medium Enterprises- which make up more than 96% of Asian Businesses). These models will not harbor the same biases that humans have and thus, create equitable access to funds for businesses to supercharge their operations.
When it comes to supply chains, the dynamic duo of artificial intelligence and emerging blockchain technology can streamline disorganized supply chains in various different industries.
As far as the ease of doing business is concerned, there are three types of AI technologies that can currently help industries and hold even more promise for the future: process automation, cognitive insight and cognitive engagement. Firstly, process automation refers to the automation of physical or mental tasks. Using this, various manual and monotonous tasks such as customer database updation, reconciliation of financial documents, analyzing legal documents etc. can be mechanized in a manner that exemplifies the same (or even better) discretion and nuance as a human expert. Secondly, cognitive insight can supercharge business analysis, and thus predict what a customer might buy, analyze warranty data among other functions. Furthermore, “cognitive engagement” can practically act as a human and attend to functions such as 24/7 customer service.
Like any development that seems ‘too good to be true’, AI also has its vices: a long list of serious risks to privacy and security. Beyond the well-known and ubiquitous threats of security risks, a plethora of legal and regulatory challenges and even the speculations of AI arms races, there are some risks that may threaten Asia specifically. One such threat is that of severe job displacement that may have a bigger impact on Asia than other regions. As per the Asian Development Bank, developing countries in Asia have been generating 30 million jobs annually for the past 25 years. However, this is a risk of a drastic decrease. 78% of the work of an assembly line worker can be automated within the next 5 years in nearly all industries. Unemployment rates in many Asian countries like Armenia and Georgia are already as high as 30% (as per the Asian Development Bank) and further unemployment would be detrimental. Thus, Asian governments have to bear the colossal responsibility of not just generating new jobs but helping people keep their existing jobs, all while keeping up with an accelerated rate of technological advancement.
As you read this, you may be enthused by the various exciting opportunities AI presents, but reminded of news snippets, online articles and various other sources that have aroused skepticism regarding it. While ethical concerns must be acknowledged and developments must taken with a pinch of salt, Asia is the world leader in addressing these concerns. Singapore announced its guidelines for AI and managing its risks at the World Economic Forum at Davos in 2020, already setting a precedent for other countries to follow.
The prospect of achieving optimization beyond our abilities, generating ideas beyond our imagination and creating impact beyond our wildest dreams, remains to be realized through the transformative power of advances in artificial intelligence in Asia.
Works Cited
“ARTIFICIAL INTELLIGENCE AND SOUTHEAST ASIA'S FUTURE.” McKinsey, https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Artificial%20Intelligence/AI%20and%20SE%20ASIA%20future/Artificial-intelligence-and-Southeast-Asias-future.pdf. Accessed 8 August 2023.
“Asia's opportunity for generative AI.” MIT Technology Review, 14 June 2023, https://www.technologyreview.com/2023/06/14/1074434/asias-opportunity-for-generative-ai/. Accessed 8 August 2023.
“How Technology Affects Jobs in Asia.” Asian Development Bank, https://www.adb.org/news/features/how-technology-affects-jobs-asia. Accessed 8 August 2023.
“3 Things AI Can Already Do for Your Company.” Harvard Business Review, https://hbr.org/2018/01/artificial-intelligence-for-the-real-world. Accessed 8 August 2023.
Townson, Sian. “AI Can Make Bank Loans More Fair.” Harvard Business Review, 6 November 2020, https://hbr.org/2020/11/ai-can-make-bank-loans-more-fair. Accessed 8 August 2023.
Vandenberg, P., and N. Yoshino. “The Role of SMEs in Asia and Their Difficulties in Accessing Finance.” Asian Development Bank, https://www.adb.org/sites/default/files/publication/474576/adbi-wp911.pdf. Accessed 8 August 2023.