Fred Razak, Chief Trading Strategist at CMTrading, comments.

Johannesburg, 12 July 2023: The emergence of Artificial Intelligence (AI) has begun to make significant waves in stock trading and global economies. According to Goldman Sachs, AI has the potential to boost global output by a staggering 7%, equivalent to approximately US$7 trillion, over the next decade. This astonishing figure surpasses the combined size of India and the United Kingdom's economies.

Moreover, the World Economic Forum predicts that nearly 25% of all jobs will transform within the next five years due to the influence of AI, digitisation, and other economic advancements. The world is on the cusp of dramatic change. Fred Razak, Chief Trading Strategist at CMTrading, shares his insights on the anticipated transformations and highlights areas future employees and investors may consider for more stability.

Identifying Areas of Disruption

"When we examine the application of AI and the impact on certain job sectors, it becomes clear that jobs with recurring, or repetitive, tasks  - such as data entry, account reconciliation, report preparation accounting, data processing, basic programming and more  - are among the first to be affected. Consequently, there will be an increasing demand for talent with customised value. Artisans, who have historically been undervalued, may find their skills becoming highly sought-after in the future, as there will be a need for unique, personalised customisation," explains Razak.

Regarding the beneficiaries of AI, Razak emphasises that companies will undoubtedly gain a competitive edge. Automating the workforce, for example, reduces overhead costs. This will, however, impact the commercial real estate sector once again as the need for office space diminishes due to a reduced workforce.

Razak raises a vital question: "What will the displaced workers do?" This remains an unanswered query that the world must address. The transition to this new era will have significant implications for high-skilled professionals who have invested years in their education and training. Suddenly finding themselves under-skilled and potentially unemployable, these individuals face uncertain futures. The world must prepare for this reality and explore viable solutions.

Anticipating Social Upheaval

While immediate unrest may not be imminent, Razak predicts that social upheaval is inevitable over the coming years. Many individuals will lose their jobs and must seek employment in new industries. However, Razak highlights that the markets have yet to fully account for these impending changes.

Reskilling and adaptation will be essential for those affected by the AI revolution. Razak suggests that individuals should consider exploring unconventional career paths and skills outside the traditional office workspaces, focusing on talents that may become unique and highly valued in the evolving job market. As AI becomes more standardised in the workplace, these distinct skills will have the greatest impact for those who have honed alternate or more aligned offerings to employers. 

Navigating the Landscape

"Investment firms will seek protection by heavily investing in AI, with companies like Microsoft, Apple, Google, and others leading the race to the finish line. Similar to the internet age, some companies will thrive by being the first to adapt, while others will overshadow established players by offering superior AI solutions," states Razak.

On an individual level, the options for avoiding the fallout from AI are limited. The full extent and implications of this transformative technology are still uncertain. Individuals may need to consider reskilling themselves, engaging with AI, or developing skills that may prove valuable in a future devoid of traditional office culture.

As the world braces for the disruptive force of AI, CMTrading remains committed to providing cutting-edge trading solutions and guiding investors through these evolving market dynamics.

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CMTrading is the brand name of Global Capital Markets Trading Ltd (A Seychelles company, company no. 104785)