Shares Magazine - May 24, 2018

24 May 2018 | SHARES | 23

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EƵŵďĞƌŽĨĂĐĂĚĞŵŝĂƐƚĂŶĚĂƌĚƌĞƐĞĂƌĐŚ
ƉĂƉĞƌƐƉƌŽĚƵĐĞĚďLJĞĞƉDŝŶĚ/
ƐŝŶĐĞϮϬϭϮ͕ŝŶĐůƵĚŝŶŐĨŽƵƌƉƵďůŝƐŚĞĚŝŶ
ƐĐŝĞŶƟĮĐũŽƵƌŶĂůEĂƚƵƌĞ
͚ŵĂĚĞƵƐƉƌŽĐĞƐƐĞĚρερŵŬŝŶŐƐŝŶ
ϮϬϭϳŝŶǀŽůǀŝŶŐϭ͘ϯďŶƉĂƐƐĞŶŐĞƌƐ͕͛ƐĂLJƐ,ĂƌƚůĞLJ͘
dŚĂƚŝŶǀŽůǀĞƐũƵŐŐůŝŶŐƚŚŽƵƐĂŶĚƐŽĨůŝǀĞƌŽƵƚĞ
ĂŶĚĨĂƌĞĐŽŵďŝŶĂƟŽŶƐ͖ǀŽůƵŵĞƐŽĨĚĂƚĂŝƚ
ǁŽƵůĚďĞƐŝŵƉůLJŝŵƉŽƐƐŝďůĞĨŽƌĂŶĂƌŵLJŽĨ
ŚƵŵĂŶƐƚŽƉƌŽĐĞƐƐ͘
ŶŽƚŚĞƌƉŽƉƵůĂƌ/ͲƌĞůĂƚĞĚŚŽůĚŝŶŐĂŵŽŶŐ
ĐĞƌƚĂŝŶĨƵŶĚƐŝƐh^ĐƵƐƚŽŵĞƌĞŶŐĂŐĞŵĞŶƚ
ƉůĂƞŽƌŵWĞŐĂƐLJƐƚĞŵƐ͘dŚĞĐŽŵƉĂŶLJƐĂLJƐ͚͗/Ĩ
LJŽƵ͛ǀĞĚƌŝǀĞŶĂĐĂƌ͕ƵƐĞĚĂĐƌĞĚŝƚĐĂƌĚ͕ĐĂůůĞĚĂ
ĐŽŵƉĂŶLJĨŽƌƐĞƌǀŝĐĞ͕ŽƉĞŶĞĚĂŶĂĐĐŽƵŶƚ͕ŇŽǁŶ
ŽŶĂƉůĂŶĞ͕ƐƵďŵŝƩĞĚĂĐůĂŝŵ͕ŽƌƉĞƌĨŽƌŵĞĚ
ĐŽƵŶƚůĞƐƐŽƚŚĞƌĞǀĞƌLJĚĂLJƚĂƐŬƐ͕ĐŚĂŶĐĞƐĂƌĞ
LJŽƵ͛ǀĞŝŶƚĞƌĂĐƚĞĚǁŝƚŚWĞŐĂ͕͛ƌĞĨĞƌƌŝŶŐƚŽŝƚƐ
ƉůĂƞŽƌŵƉƌŽĚƵĐƚ͘
WĞŐĂƐLJƐƚĞŵƐ͛/ͲƉŽǁĞƌĞĚĂƉƉůŝĐĂƟŽŶƐ
ĂƌĞƉĂƌƚŽĨƚŚĞƌĞĂƐŽŶǁŚLJEĞƉƚƵŶĞĨƵŶĚ
ŵĂŶĂŐĞƌůŝhŶǁŝŶŝƐƐƵĐŚĂďŝŐĨĂŶ͘dŚĞƐƚŽĐŬ
ŝƐŽŶĞŽĨEĞƉƚƵŶĞ'ůŽďĂůdĞĐŚŶŽůŽŐLJ&ƵŶĚ͛Ɛ
ďŝŐŐĞƌŚŽůĚŝŶŐƐĂůŽŶŐƐŝĚĞƐŽŵĞďĞƩĞƌͲŬŶŽǁŶ
ĐŽŵƉĂŶŝĞƐƐƵĐŚĂƐ&ĂĐĞŬ͕ƉƉůĞĂŶĚsŝƐĂ͘
TODAY'S OPPORTUNITIES
ZŝŐŚƚŶŽǁŵŽƐƚĨƵŶĚŵĂŶĂŐĞƌƐǁŽƵůĚƉƌŽďĂďůLJ
ůŽŽŬƚŽƚƌĂĚŝƟŽŶĂůƚĞĐŚŶŽůŽŐLJŶĂŵĞƐƚŽƉůĂLJ
ƚŚĞ/ƚŚĞŵĞ͘&E'ƐƚŽĐŬƐ;&ĂĐĞŬ͕ŵĂnjŽŶ͕
'ŽŽŐůĞ͕EĞƞůŝdžͿǁŽƵůĚďĞĂŐŽŽĚĂƉůĂĐĞƚŽƐƚĂƌƚ
ƉĂƌƚůLJďĞĐĂƵƐĞƚŚĞŝƌǀĂƐƚĐĂƐŚŚŽĂƌĚƐŵĞĂŶƐƚŚĞLJ
ĐĂŶďƵLJƵƉƚŚĞŵŽƐƚŝŶƚĞƌĞƐƟŶŐƐƚĂƌƚͲƵƉƐ͘
/ŵƉĞƌŝĂůŽůůĞŐĞ>ŽŶĚŽŶƌĞƐĞĂƌĐŚƐƵŐŐĞƐƚƐ
ƚŚĞĂĨŽƌĞŵĞŶƟŽŶĞĚ&E'ĐŽŵƉĂŶŝĞƐ͕ƉůƵƐ/D͕
DŝĐƌŽƐŽŌ͕ƉƉůĞĂŶĚzĂŚŽŽ͕ƐƉĞŶƚŵŽƌĞƚŚĂŶ
ΨρďŶďĞƚǁĞĞŶƚŚĞŵŽŶ/ƐƚĂƌƚͲƵƉƐŝŶϮϬϭρĂŶĚ
ϮϬϭςĂůŽŶĞ͘
/ŶϮϬϭκ'ŽŽŐůĞƐƉĞŶƚΨρϬϬŵŽŶďƵLJŝŶŐ
ĞĞƉDŝŶĚ͕ƚŚĞ/ĚĞǀĞůŽƉĞƌĨŽƵŶĚĞĚďLJ
ŶĞƵƌŽƐĐŝĞŶƟƐƚĞŵŝƐ,ĂƐƐĂďŝƐǁŚŽŝƐǁŝĚĞůLJ
ĐŽŶƐŝĚĞƌĞĚƚŽďĞŽŶĞŽĨƚŚĞůĞĂĚŝŶŐ/ĞdžƉĞƌƚƐŝŶ
ƚŚĞǁŽƌůĚ͘
/ƚŚŝŐŚůLJůŝŬĞůLJƚŚĂƚƚŚĞďŝŐƉƵďůŝĐĐůŽƵĚ
ƉůĂƞŽƌŵƐǁŝůůďĞƚŚĞĞĂƐŝĞƐƚǁĂLJƚŽŐĞƚ/ͲďĂƐĞĚ
ĂƉƉůŝĐĂƟŽŶƐǁŝĚĞůLJĚŝƐƚƌŝďƵƚĞĚ͘
ŵĂnjŽŶtĞď^ĞƌǀŝĐĞƐ͕DŝĐƌŽƐŽŌ͛ƐnjƵƌĞĂŶĚ
'ŽŽŐůĞůŽƵĚĂƌĞůŝŬĞůLJƚŽƉƌŽǀŝĚĞĐůŝĞŶƚƐǁŝƚŚ
ďŽůƚͲŽŶĂŶĚƵƉƐĞůů/ƚŽŽůƐĂŶĚĂƉƉůŝĐĂƟŽŶƐ͕Ăůů
ĐŽŶŶĞĐƚĞĚŽǀĞƌƚŚĞŝŶƚĞƌŶĞƚ͘/D͕KƌĂĐůĞ͕ŚŝŶĂ͛Ɛ
ůŝďĂďĂĂŶĚĂŝĚƵŵĂLJĨŽůůŽǁƐŝŵŝůĂƌƉĂƚŚƐ͘
FAR-REACHING POTENTIAL
/ŚĂƐƐƵĐŚĨĂƌͲƌĞĂĐŚŝŶŐƉŽƚĞŶƟĂůƚŚĂƚŝƚŝƐ
ƚŽƵŐŚƚŽĞŶǀŝƐĂŐĞĂŶLJŝŶĚƵƐƚƌLJƚŚĂƚǁŝůůŶŽƚďĞ
ƐŽŵĞŚŽǁƐŚĂŬĞŶƵƉďLJĞŵĞƌŐŝŶŐ/ĂƉƉůŝĐĂƟŽŶƐ͕
ĞƐƉĞĐŝĂůůLJŶŽǁƚŚĂƚĚĂƚĂĐŽůůĞĐƟŽŶŝƐďĞĐŽŵŝŶŐ
ƐŽĞĂƐLJĂŶĚƵƐĞĨƵů͘
&ŽƌĞdžĂŵƉůĞ͕ŽŝůŐŝĂŶƚZŽLJĂůƵƚĐŚ^ŚĞůů
;Z^ͿŝƐƌĞƉŽƌƚĞĚƚŽďĞǀĞƌLJĞŶƚŚƵƐŝĂƐƟĐĂďŽƵƚ
/ƚĞĐŚŶŽůŽŐLJ͕ƐĂLJŝŶŐƐĞŶƐŽƌƐĂƌĞĐŚĞĂƉĂŶĚĐĂŶ
ďĞƵƐĞĚƚŽŵŽŶŝƚŽƌƉĞƌĨŽƌŵĂŶĐĞ͘
h<ĐŽŵƉĂŶŝĞƐƐƵĐŚĂƐĂĞƌŽͲĞŶŐŝŶĞĞƌ
ZŽůůƐͲZŽLJĐĞ;ZZ͘Ϳ͕ƉŚĂƌŵĂŐŝĂŶƚ'ůĂdžŽ^ŵŝƚŚ<ůŝŶĞ
;'^<Ϳ͕h<ͲůŝƐƚĞĚŵŝŶĞƌƐ͕ďĂŶŬƐĂŶĚĞŶĞƌŐLJ
ƐƵƉƉůŝĞƌƐĂƌĞĂůƐŽŽďǀŝŽƵƐƉŽƚĞŶƟĂůďĞŶĞĮĐŝĂƌŝĞƐ
ŽĨ/ĂƉƉůŝĐĂƟŽŶƐ͘
dŚŝƐŵĂLJƐƵŐŐĞƐƚƚŚĂƚƚŚĞďĞƐƚŝŶǀĞƐƚŵĞŶƚ
ƌĞƚƵƌŶƐǁŽŶ͛ƚŶĞĐĞƐƐĂƌŝůLJĐŽŵĞĨƌŽŵ/
ĂƉƉůŝĐĂƟŽŶĚĞƐŝŐŶĞƌƐ͕ďƵƚĨƌŽŵƚŚŽƐĞĐŽŵƉĂŶŝĞƐ
ĂďůĞƚŽƵƐĞƚŚĞŵƚŽƚŚĞŝƌĂĚǀĂŶƚĂŐĞ͘;^&Ϳ
/^>/DZ͗ĚŝƚŽƌĂŶŝĞůŽĂƚƐǁŽƌƚŚŚĂƐĂƉĞƌƐŽŶĂů
ŝŶǀĞƐƚŵĞŶƚŝŶ&ƵŶĚƐŵŝƚŚƌĞĨĞƌĞŶĐĞĚŝŶƚŚŝƐĂƌƟĐůĞ
Create more
jobs than
AI eliminates
Source: Gallup, Northeastern University, Jan 2018
Eliminate
more jobs
than AI creates
Have
no
effect
what will ai do to the human workforce?
14% 13% 73%
0
5
10
15
20
25
30
2016 2017 2018 2019 2020 2021
Source: Gartner, 2016
AI technology spending worldwide
0.45 2.35
6.03
11.45
19.28
$bn 28.96