MIT Technology Review 6 only industry cohort that did not feel as positive as the Most CEOs surveyed feel AI will respondent average was the one from the financial bring positive benefits to their own service industry. On average, industry respondents felt most encouraged about the positive impact AI and industry—except executives automation would have on their own competitiveness, from the crisis-plagued financial ranking it 4 out of 5. Once again, the optimism from respondents in retailing, ITC, and manufacturing service industry industries was higher than the average—while sentiment from the financial service industry was noticeably lower. Tellingly, respondents were even more inclined to The relative caution and pessimism among see positive benefits from AI for their own industry: financial sector respondents could have to do with most industry participants ranked the impact of past experiences. The 2007 global financial crisis AI on their own sector higher than the average. may not have started in Asia or hit the region’s banks Respondents from one sector, however, were actually and financial institutions as hard as it did elsewhere, more pessimistic: those from the financial service but the fallout, and the lingering regulatory and industry on average saw AI as a positive influence, compliance burden it created, plague Asian banks yet many also felt that automated processes and to this day. Moreover, mini-crises fomented by new machine-based transactions would destroy value in technologies constantly punctuate the industry their industry. landscape; “flash crashes,” for example, are fast, Banking industry fears of artificial intelligence’s sharp stock market plunges brought about by the destructive potential were also revealed when combination of human error and algorithmic trading. respondents were asked to rate the impact that Financial industry respondents may have these events these technologies would have on Asia’s industrial, in the back of their minds when considering what policy, and competitive landscape. Overall, survey artificial intelligence means for their future. respondents felt that advances in artificial intelligence Modest reticence from finance respondents would significantly boost Asia’s competitiveness as a aside, AI has the potential to affect a number of manufacturing and service center, benefit government Asia’s development challenges, from food security policy makers in their attempts to boost innovation, to public safety, transportation networks, and health and increase overall industry growth prospects. The care. Lin Yuanqing, the director of the Institute of Figure 2: AI’s impact on Asia’s business landscape What degree of impact will advancements in AI and robotics have over the next five years? (1 being least positive, 5 being most positive) 5 4 3.7 3.9 3.9 4 3 3.5 2 1 Asia’s manufacturing Asia’s service Asia’s tech and innovation My industry’s My company’s competitiveness industries government policies growth prospects competitiveness Source: MIT Technology Review © MIT Technology Review, 2016. All Rights Reserved.