Released
The New Skills in Finance Report 2022
In a digital-transforming era, there is a widening skills gap for those who cannot adapt to the new digital world in finance.
CFTE and Elevandi published the report with the discussion with leading experts to help governments, organisations and individuals address the current skills gap in finance and build a digital-resilient workforce in the industry.
Key Insights
Key takeaways from "The transformative power of generative AI" report published by JP Morgan Asset Management.
CFTE summarised “The transformative power of generative AI” report by JP Morgan Asset Management. This paper addresses the significant potential implications of AI, especially generative AI, for the economy, workers and financial markets.
Key Aspects
- The report examines the impact of generative AI technologies, emphasizing their potential to revolutionize work, innovation, and creation.
- It delves into how generative AI, which can generate human-like output across various domains, could become a general-purpose technology with transformative implications for the global economy
Table of Contents
- The transformative potential of generative AI
- Work in an age of AI automation
- With considerable promise comes considerable risk
- Key asset class implications
Key Findings and Insights
This report will give you an insight into:
- Generative AI is highly versatile and accessible, capable of creating novel, human-like output across various domains. That means the real-world applications of generative AI are vast, especially compared to “traditional” AI applications like playing chess and forecasting the weather.
- AI seems set to transform the economy and spawn future innovations, joining the ranks of the steam engine and electricity as the next “general-purpose technology.”
- AI could significantly accelerate labor productivity after many years of near stagnation. We estimate a potential boost of 1.4%-2.7% per year over a decade for developed markets, close to others’ estimates. Such gains could meaningfully increase real output while lowering the costs of many goods and services.
- Automation does mean needing fewer workers to produce the same output, which could result in transitional job displacement. As with historical bouts of automation, we expect greater efficiencies to drive demand for plenty of new jobs. However, increased income inequality could be a challenge.
- Managed properly, AI automation could support healthy economic growth as populations in developed economies age: every job automated is one more worker who can retire without reducing economic output.
- Workers might also work less: a hypothetical 30% productivity gain over the next decade could see us working 5-10% fewer hours.
- Future jobs will increasingly involve working alongside AI and focusing on humans’ relative strengths, such as conceptual reasoning, emotional intelligence and creativity.
- Productivity gains should boost corporate earnings and equity returns. AI enthusiasm has already helped fuel outperformance of Big Tech this year; AI exuberance could propel markets even higher.
- For fixed income, AI could push yields modestly higher. Yields tend to track nominal GDP, and we think AI will increase real growth more than it depresses inflation.
- A highly uncertain future demands humility and discretion. In such uncertain environments, though, we believe active management excels at identifying winning companies and forecasting trends in entire asset classes.
- Generative AI appears poised to become the transformative technology of the 21st century, driving significant productivity gains.
Key infographics
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