Embrace AI,Teo tells businessmen
KOTA KINABALU: Business leaders need to embrace digital transformation, smart technologies and innovate their business model in the wake of impending dramatic change at exponential speed driven by new technologies, said the Minister of Special Tasks Datuk Teo Chee Kang.
Teo said business should also be open minded to learn and embrace artificial intelligence (AI) as well as to explore ways AI could further enhance their businesses.
“Businesses must be aware of emerging disruptive innovations which are fast replacing conventional businesses.”
For instance, he said Airbnb which was gradually replacing the conventional accommodation industry; Uber service was preferred to normal commercial taxis; internet or on line shopping was taking over the physical shopping malls; travel smart applications were taking over travel agents; 3D printing was becoming the core part of the manufacturing industries and so forth.
In Kenya, M-Pesa, the mobile money transfer system now has 17 million users -- fast replacing the normal banks, whereas online food order such as ‘Food Panda’ can be a potential threat to restaurant business, Teo said.
“Our smart phones alone have replaced the physical alarm clocks, diaries, cameras, maps, land line telephones, et cetera.
“Advertisements through social media is much more effective, efficient and cheaper than billboards.”
Hence, Teo said business leaders needed to wake up and realize that they could not operate business the conventional way as the business platform has changed.
“We need to re-evaluate our business model. There will be dramatic change at exponential speed driven by new technologies. We need to embrace digital transformation, smart technologies and innovate our business model,” he said that at the grand opening of GA Space, the new office of G&A Group, here yesterday.
He said businesses should also capitalize on the hyper connected world and understand the future markets comprising the Gen Y and Z who are the digital generation.
Additionally, Teo said businesses should start to embrace AI and seek out how AI could enhance their businesses.
“It is projected that the next 10 years will be an age of AI -- the fourth industrial revolution which is fast and transformational.
“In the next decade, the effect of AI will be magnified to impact manufacturing, retailing, transportation, finance, health care, law, accounting, advertising, insurance, education and many more.”
Teo said the founding President of Google China, computer scientist Lee Kai-Fu, has speculated that AI may replace about 50 per cent of human jobs in the next 10 years.
“In the light of this, it is critical that our education, skills and knowledge providers equip our younger generation with the relevant know-how, latest technologies and innovation so as not to miss the AI revolution and be replaced by AI.”
He said future careers should be aligned to AI, while the younger generation must be empowered to innovate.
At the same time, productivity must increase, he said.
“As the nation moves towards aged population in year 2045, one of the key enablers to sustain the nation is to increase productivity.
“Do more with less.”