The rapid advancement of artificial intelligence (AI) is transforming industries and reshaping the global economy, bringing opportunities alongside challenges.
David Barrett, CEO of EBC Financial Group (UK) Ltd, addressed these dynamics in a recent interview with TVBS News, offering his perspective on AI’s influence on labour markets, its role in driving innovation, and the hurdles to realising its full potential.
Barrett’s remarks come at a time when AI adoption is accelerating across industries.
According to the latest McKinsey Global Survey on AI, 65 percent of organisations are now regularly using generative AI tools, nearly double the figure from just ten months ago.
The survey also reveals that three-quarters of respondents anticipate generative AI to cause significant or disruptive changes in their industries in the coming years.
Barrett described AI as a tool for growth and transformation, not a threat to employment, while advocating for responsible innovation to unlock its long-term benefits.
AI as a driver of growth, not disruption
Barrett sought to dispel fears of widespread job losses due to AI adoption, emphasising the technology’s role in driving industrial growth.
“The tech sector is in a race to remain competitive during this AI boom, heavily investing in data centres, talent, and cutting-edge chip technologies,” he explained.
These investments, he said, are opening up new opportunities in fields like advanced manufacturing and data infrastructure.
Barrett also highlighted that AI is in its early stages of adoption. Rather than causing disruptions in the labour market, the global economy is experiencing a cycle of innovation and expansion. “This is a young sector,” he noted. “The current phase is about expansion and innovation, not the negative impacts often speculated.”
Challenges in AI’s early development
While recognising the transformative potential of AI, Barrett acknowledged the challenges of its early development. He discussed issues stemming from rushed implementations, including compromised quality in certain applications.
“AI technology is still in its early stages and often lacks the nuance required for complex or technical topics,” Barrett explained.
As an example, he cited a U.S. legal case in which a lawyer relied on AI-generated references that turned out to be incorrect, leading to the dismissal of the case.
“AI excels in general information retrieval but struggles with nuanced, technically complex topics. It’s a reminder that this technology is still in its growing stages,” he stated.
Despite these limitations, Barrett expressed optimism about AI’s ability to address such shortcomings as it matures.
The AI boom: parallels with the dot-com era
Barrett drew parallels between the current AI surge and the early days of the internet boom, noting both the technology’s potential and the risks of overinvestment. “Mass adoption is crucial for AI to justify its current level of investment,” he said.
“Without widespread integration, many firms—especially those with smaller balance sheets—will struggle under the weight of significant upfront costs and delayed returns,” Barrett explained.
He also addressed the challenge of monetising AI applications, stressing the importance of scalable solutions and sustainable growth.
While some comparisons to the dot-com bubble are apt, Barrett emphasised that AI’s long-term potential is undeniable, provided the industry remains focused on collaborative innovation and responsible practices.
The Asia-Pacific: a hub for AI’s growth and sustainability
Barrett pointed to the Asia-Pacific region as a critical area for AI’s growth, particularly in the semiconductor and electronics industries.
He argued that these innovations could drive significant economic expansion while also advancing sustainability goals in the region.
“By sharing expertise and integrating AI solutions, the Asia-Pacific can establish a resilient, competitive ecosystem that sets a global benchmark,” he stated. Barrett highlighted the importance of cross-border collaboration in achieving these objectives.
These observations align with findings from the IDC Data and AI Pulse: Asia Pacific 2024 study, which reveals a surge in AI investment across the region.
Nearly half (43%) of APAC organisations plan to increase their AI budgets by more than 20% in the next year, aiming to drive revenue growth, boost operational efficiency, and improve profitability.
However, the study also underscores a significant divide between AI Leaders—organisations with clear strategies driving transformational change—and AI Followers, who focus on experimentation but lack a long-term vision.
This growing disparity highlights the need for businesses to align AI investments with defined strategic goals to realise sustainable and impactful outcomes in an increasingly competitive and fast-evolving technological landscape.
