Oz, a fully autonomous farming robot made by Naio Technologies, during a media preview event at CES 2022 in Las Vegas, Nevada. Reuters
Oz, a fully autonomous farming robot made by Naio Technologies, during a media preview event at CES 2022 in Las Vegas, Nevada. Reuters
Oz, a fully autonomous farming robot made by Naio Technologies, during a media preview event at CES 2022 in Las Vegas, Nevada. Reuters
Oz, a fully autonomous farming robot made by Naio Technologies, during a media preview event at CES 2022 in Las Vegas, Nevada. Reuters

60% of people expect artificial intelligence to improve their daily lives, WEF finds


Alkesh Sharma
  • English
  • Arabic

While six in 10 people globally expect artificial intelligence to revolutionise their daily lives, a majority are concerned about its potential impact on fundamental freedoms and rights, a report by the World Economic Forum showed.

About 60 per cent of respondents said that products and services using AI will make their lives easier, but 40 per cent admitted that the use of this technology makes them nervous.

Only 37 per cent of those surveyed expected AI to improve their situation when it comes to freedom and legal rights.

To trust AI, people must know and understand exactly what the technology is, what it is doing and its impact, Kay Firth-Butterfield, head of AI and machine learning at the WEF, said.

.
.

“Leaders and companies must make transparent and trustworthy AI a priority as they implement this technology … we are focused on multi-stakeholder collaboration to optimise accountability, transparency, privacy and impartiality to create that trust,” Ms Firth-Butterfield said.

The WEF report is based on the findings of a 28-country survey conducted by Ipsos that interviewed 19,504 adults under the age of 75 between November 19 and December 3 last year.

The Shanghai Bistro robot server named Jonny 5 delivers food and sings a surprise happy birthday song. AP
The Shanghai Bistro robot server named Jonny 5 delivers food and sings a surprise happy birthday song. AP

Globally, the AI market is booming as governments invest in technology to drive efficiency and savings in the post-pandemic era.

The UAE, the Arab world's second-largest economy, is projected to benefit the most in the Middle East from AI adoption. The technology is expected to contribute up to 14 per cent to the country’s gross domestic product — equivalent to $97.9 billion — by 2030, a report from consultancy firm PwC showed.

Overall, investors poured money into AI-focused companies at a historic rate during the Covid-19 pandemic, a separate study by Stanford University showed.

Total global AI investment — including private investment, public offerings, mergers and acquisitions, and minority stakes — increased by 40 per cent in 2020 for a total of $67.9bn, compared with a 12 per cent jump from 2018 to 2019, the Stanford study said.

For this survey, AI was defined as computers and robots doing things that usually require human intelligence. Almost two thirds of respondents claimed that they have a good understanding of what AI is, based on this definition, but only half said that they knew which types of products and services use AI.

The WEF report also highlights a clear divide between high-income and emerging economies in attitudes towards AI, with optimism higher in emerging economies.

.
.

Some 80 per cent of respondents in China and Saudi Arabia expected AI to change their lives, but less than half said the same in Canada, Germany, France, the UK and the US.

hen asked whether AI would make their lives easier, respondents were more likely to be optimistic in less economically developed countries. For example, 70 per cent of those surveyed in Peru agreed that AI would have more benefits, as opposed to only 31 per cent in France, 32 per cent in Canada and 35 per cent in the US.

Children work in a classroom while a pupil at home is connected with a 'Buddy' tele-education robot at Jules Ferry Elementary School in Ormesson-sur-Marne, near Paris. AFP
Children work in a classroom while a pupil at home is connected with a 'Buddy' tele-education robot at Jules Ferry Elementary School in Ormesson-sur-Marne, near Paris. AFP

The areas that people expect to change the most due to AI are education and learning (35 per cent), safety (33 per cent), employment (32 per cent), shopping (31 per cent) and transport (30 per cent).

Only half of respondents said they trusted companies that use AI at the same level as those that do not, with trust in companies that use AI highly correlated with reported familiarity with the technology, the WEF said.

A majority of respondents in emerging countries said they trusted companies that use AI as much as other companies, most notably in China (76 per cent) and India (68 per cent), whereas, only about one third of survey respondents in many high-income countries, including Canada, France, the US and Australia, trusted AI-powered companies.

Palestinian students interact with a locally made educational robot during a science class at a private school in Gaza city. AFP
Palestinian students interact with a locally made educational robot during a science class at a private school in Gaza city. AFP

“With the ability to solve many of society’s pressing issues, we are focused on accelerating the benefits and mitigating the risks of AI and machine learning,” said Ms Firth-Butterfield.

“Only then can we gain public trust and benefit from the rewards of emerging tech like AI.”

Good understanding of AI ranged from lows of 41 per cent in Japan and 42 per cent in Italy, to highs of 78 per cent in South Africa, 76 per cent in Chile and 75 per cent in Russia.

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
Fixtures

Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs

Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms

Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles

Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon

Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon

MATCH INFO

Euro 2020 qualifier

Fixture: Liechtenstein v Italy, Tuesday, 10.45pm (UAE)

TV: Match is shown on BeIN Sports

Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Neo%20Mobility%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20February%202023%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Abhishek%20Shah%20and%20Anish%20Garg%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Delta%20Corp%2C%20Pyse%20Sustainability%20Fund%2C%20angel%20investors%3C%2Fp%3E%0A

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: January 06, 2022, 11:31 AM