Page 7 - FWP Wealth Adviser Newsletter - February 2025
P. 7

ISSUE 105
                                                                                                         FEBRUARY 2025

           Education systems and professional development       understanding the dual nature of AI disruption, preparing
        programs will need to evolve rapidly to keep pace with AI   for market shockwaves, preserving wealth through strategic
        advancements. There’s likely to be increased demand for   adaptation, and fostering workforce resilience, we can nav-
        courses in data science, machine learning, and AI ethics,   igate this transformative era with confidence and foresight.
        as well as programs that teach workers how to effectively   The future belongs to those who can effectively harness
        collaborate with AI systems.                            the power of AI while maintaining the human insight and
                                                                ethical considerations that are essential for sustainable
        Strategic Navigation Principles for Investors and       growth and prosperity.
        Institutions
           As we navigate this AI-driven transformation, several key
        principles emerge for investors and institutions:       References:
        1.  Embrace Augmented Intelligence: Following Russell’s   •  AMP Capital. (2024). Econosights - An Update on the AI Revolution.
           “three-lens framework” for evaluating AI adoption risks   https://www.amp.com.au/resources/insights-hub/econosights-an-
           and rewards, organisations should focus on integrating   update-on-the-ai
           AI capabilities with human expertise rather than seeking   •  Firstlinks. (2024). What the AI Sputnik Moment Means for Data
           to replace human decision-making entirely.            Centres. https://www.firstlinks.com.au/what-ai-sputnik-moment-
        2.  Invest in Infrastructure: The massive demand for AI-re-  means-for-data-centres
           lated infrastructure presents significant investment oppor-  •  Russell Investments. (2023). The Value of AI in Asset Management.
           tunities, but also requires careful due diligence to avoid   https://russellinvestments.com/au/blog/value-ai-asset-management
           overexposure to potential supply chain disruptions.  •  Gartner. (2024). Hype Cycle for Artificial Intelligence. https://www.
        3.  Prioritise Adaptability: In a rapidly evolving techno-  gartner.com/en/articles/what-s-new-in-the-2023-gartner-hype-cycle-
           logical landscape, the ability to quickly adapt strategies   for-emerging-technologies
           and retrain workforce skills will be crucial for long-term   •  Firstlinks. (2024). After DeepSeek: What’s Next for the Big US Tech
           success.                                              Companies? https://www.firstlinks.com.au/article/after-deepseek--
        4.  Consider Ethical Implications: As AI systems become   what-s-next-for-the-big-us-tech-companies
           more prevalent in decision-making processes, organisa-  •  McKinsey Global Institute. (2023). The Economic Potential of
           tions must prioritise ethical considerations and transpar-  Generative AI: The Next Productivity Frontier. https://www.mckinsey.
           ency to maintain trust with customers and regulators.  com/capabilities/mckinsey-digital/our-insights/the-economic-
        5.  Develop Sovereign Capabilities: Firstlinks’ call for   potential-of-generative-ai-the-next-productivity-frontier
           “sovereign AI capability buffers” in Australian policy   •  Cambridge Centre for Alternative Finance. (2023). The Global AI in
           highlights the importance of maintaining technological   Financial Services Survey. https://www.jbs.cam.ac.uk/faculty-research/
           independence and resilience in an increasingly AI-driven   centres/alternative-finance/publications/the-global-ai-in-financial-
           global economy.                                       services-survey/
           The Brookings Institution suggests that competitive re-  •  World Economic Forum. (2024). Future of Jobs Report 2024. https://
        silience in the AI era will require a combination of strategic   www.weforum.org/reports/the-future-of-jobs-report-2023/
        investment, adaptive regulation, and international cooper-  •  Firstlinks. (2024). The Case for Australian AI. https://www.firstlinks.
        ation. As we move forward, it will be crucial for investors,   com.au/article/the-case-for-australian-ai
        businesses, and policymakers to work together to harness   •  Brookings Institution. (2023). Strengthening International Cooperation
        the potential of AI while mitigating its risks.          on AI: Progress and Challenges. https://www.brookings.edu/articles/
           In conclusion, the AI revolution presents both un-    strengthening-international-cooperation-on-artificial-intelligence-
        precedented opportunities and significant challenges. By   progress-and-challenges/



















                                                                                                                   7
   2   3   4   5   6   7   8   9   10   11