Take heed of fourth industrial revolution’s impact
IF organisations and governments fail to embrace new technologies, changes in labour markets may contribute to rising inequality.
This is according to SA
Reserve Bank Deputy Governor, Daniel Mminele, who addressed delegates at the University of Zululand’s (Unizulu) International Management, Business, Administration and Legal Initiatives (MBALI) conference in Empangeni last week.
Mminele talked about the impact of the ‘fourth industrial revolution’, the use of artificial intelligence to manufacture goods.
He said although a country’s experience of this revolution depends on its development and the skills set of its labour force, preparedness is essential.
‘Like the first three industrial revolutions, the fourth will have significant transformative impacts on society.
‘This time the systemic impact is expected to be much more intense as new technologies are developing at exponential speed with much wider coverage.
‘For many emerging markets structural impediments have hindered development, to such an extent that artificial intelligence is not an immediate possibility, and the adaptation of new technology to local conditions in these economies is therefore likely to be slower,’ Mminele said.
The Deputy Governor highlighted that lower skilled jobs and highly qualified professional jobs such as financial analysts could be at risk of being eliminated.
‘There was a time when ideas such as driverless cars and talking robots were only found in sci-fi movies and seemed imaginative and unrealistic. ‘These are no longer things of the distant future, they are becoming part of our lives and will become increasingly common in the coming years.’ He added that monetary policy could also be affected.
‘Inflation could decelerate because online retailers face much lower operational costs than traditional businesses.
‘But the more financial systems depend on electronic platforms and digital records, the more exposed they become to cyber attacks, which can disrupt the flow of funds across the economy and create financial instability.
‘But if harnessed correctly, technological change can bring immense economic opportunities.
‘These include the ability to connect billions more people through digital networks, thereby improving the efficiency of organisations dramatically. ‘There is also the capacity to reduce costs and reduce the necessity for businesses to have a physical presence.
‘It will also create opportunities for new, small-scale producers to enter the increasingly globalised markets.’
He encouraged tertiary institutions such as the University of Zululand to understand the implications of this revolution in order to better prepare their students for the future.