The banking sector in Malaysia is exploring the potential of generative artificial intelligence (GenAI) to unlock US$113.4 billion in productive capacity. The Asian Institute of Chartered Bankers (AICB) chairman, Tan Sri Azman Hashim, highlighted the role of GenAI in shaping the future of banking and emphasized the need for future-fit banking talents with AI skills. The AICB will launch courses on environmental, social, and governance, digital, and AI themes to support the industry's capacity-building needs. The Future Skills Framework (FSF), an initiative led by AICB, will be launched on July 22 to foster a future-ready workforce in Malaysia's financial industry.
The Malaysian Banking Conference 2024 drew over 600 delegates from local and international financial institutions. Digital Minister Gobind Singh Deo emphasized the importance of infrastructure, cybersecurity, and upskilling in using new technologies like AI in the banking sector. He also highlighted the government's commitment to cybersecurity and the protection of personal data.
Investments in health have a positive impact on the economy, according to an opinion piece in the New Straits Times. The article highlights that investing in healthcare infrastructure, research and development, and healthcare services can lead to job creation, economic growth, and improved productivity. The author emphasizes the importance of government support and public-private partnerships in driving these investments. The article also mentions the COVID-19 vaccine as an example of a health investment that has had a significant impact on the global economy. The COVID-19 pandemic has demonstrated the critical role of healthcare in safeguarding public health and its interconnectedness with economic development. The article argues that prioritizing investments in health is crucial for both public health and economic development. By investing in health, countries can create a resilient healthcare system, stimulate economic growth, and enhance productivity.
Investing in fundamental research is crucial for both the US and Canadian economies. Research has the power to transform economies and societies, as demonstrated by the role of fundamental scientific research in the development of the Pfizer-BioNTech COVID-19 vaccine. Countries that invest in emerging fields like artificial intelligence and clean energy will reap economic rewards in the long term. However, both countries are facing challenges in funding research. In Canada, there is a talent crunch in the research community due to a lack of funding. The core funding for federal research granting agencies is decreasing, grants for graduate students and postdoctoral fellows have not increased in over twenty years, and the private sector's investment in research is lower than in other countries. In the US, Congress' unfulfilled funding pledge for scientific research threatens the economy. Less than two years after agreeing to invest more in basic research, Congress is already scaling back funding. A recent package of funding bills signed by President Joe Biden cuts the budget for the National Science Foundation (NSF) by over 8% compared to last year. The president's budget blueprint for the next fiscal year also falls short. Underfunding basic research poses a threat to the US' role as a leader in critical technology areas and makes it harder to recruit skilled workers. Disrupting federal research funding affects jobs, businesses, and the economy. Lagging research investment will hurt US leadership in critical technologies and slow economic growth. Congress needs to fulfill its promise to invest more in research to support jobs, innovation, competitiveness, and economic growth.
In a recent article from The Irish Times, Professor Jim Livesey and Rebecca Braun argue for a new approach to research in Ireland. They emphasize the need for creativity, originality, and partnerships in research. The authors discuss the creation of Taighde Éireann – Research Ireland, a new national agency for research and innovation funding that aims to bring together the strengths of the Irish Research Council and Science Foundation Ireland. They highlight the importance of supporting exploratory research and sustaining basic research as the foundation for scientific breakthroughs. The article also emphasizes the need for Ireland to become a research leader to address complex global issues such as AI, green growth, climate change, and political instability. The authors conclude by stating that universities and research funding agencies should focus on developing citizens of the new century rather than creating 'useful' graduates.
According to an article from The Conversation Indonesia, Congress in the United States is failing to deliver on its promise of billions more in research spending, which threatens America's long-term economic competitiveness. While the federal government spends tens of billions of dollars every year to support fundamental scientific research conducted at universities, Congress is falling short of the targets set for research funding. This shortfall could have a negative impact on America's future competitiveness. The bipartisan CHIPS and Science Act, passed in August 2022, promised one of the biggest federal investments in basic science research, but the money still needs to be appropriated by Congress. The current budget proposals fall short of the funding called for in the CHIPS act. Lagging research investment will harm U.S. leadership in critical technologies and disrupt the economy. Federal research funding supports businesses nationwide and contributes to the economic health of communities. Disrupting or decreasing research funding also slows the flow of STEM talent from universities to American businesses. Threats to federal research investments put academic jobs at risk and decrease high-tech entrepreneurship. Lasting stagnation or shrinking investments would have pronounced effects on job candidates, discoveries, and economic growth. Lawmakers need to fulfill their promise to invest more in research to support jobs, innovation, competitiveness, and economic growth.
According to an article from Asia Times, the US Congress has not delivered tens of billions of dollars in funding that is essential for keeping up technologically with China. A package of funding bills recently passed by Congress and signed by President Joe Biden on March 9, 2024, cuts the current fiscal year budget for the National Science Foundation (NSF) by over 8% relative to last year. The president's budget blueprint for the next fiscal year, released on March 11, would still leave the NSF a total of $15 billion behind the plan Congress laid out to help the US keep up with countries such as China that are rapidly increasing their science budgets. The underfunding of basic research poses a threat to the US' role as a leader in critical technology areas, forestalls innovation, and makes it harder to recruit skilled workers. Disrupting or decreasing research funding also slows the flow of STEM talent from universities to American businesses. Over time, this could lead to slower economic growth and decreased competitiveness in the age of AI.
According to an article from the American Enterprise Institute, the National Science Foundation (NSF) received only $9 billion under the latest spending deal, which is 42 percent below the target set by the CHIPS and Science Act. Federal R&D investment as a share of GDP is at its lowest since the Space Age. Reduced public R&D investments coincide with the slowdown in US productivity growth. Government-funded R&D plays a crucial role in US productivity. Public policy that advances human capital is a crucial driver of innovation. Importing talent through immigration is critical, as US immigrants patent more often and make up a disproportionate share of the science and engineering workforce. Since the COVID-19 pandemic, US student mathematics performance has significantly declined, while the enrollment of international graduate students in science and engineering at US institutions has surged. Foreign-born individuals comprise 19 percent of STEM workers. Women and minorities remain underrepresented in STEM. The underfunding of science and missing talent threaten the US economic competitiveness. Education and immigration are key elements in American innovation.
In Canada, the federal government has allocated $50 million over four years in the federal budget to support workers who may be impacted by artificial intelligence (AI). The investment is part of a larger $2.3 billion initiative to boost the adoption of AI and the AI industry in Canada. The funding will be used to provide skills retraining for workers in potentially disrupted sectors and communities through the Sectoral Workforce Solutions Program. The budget identifies the creative industries as an affected sector, but other sectors and types of jobs may also be covered. The impact of AI is expected to be felt across all industries, with around 40% of all working hours potentially impacted. The federal government has used AI in nearly 300 projects and initiatives. Critics argue that the $50 million investment is insufficient given the scale of the transformation and suggest additional resources and measures such as unconditional income support and contributions from AI companies.
The National Science Foundation (NSF) is piloting a public-facing AI chatbot for grant opportunities. The chatbot aims to make the process of looking for NSF grants easier by providing information about grants based on user inputs. It was trained using NSF's proposal guide. The pilot is also a test for the agency to experience rapid implementation of an AI capability. The chatbot is NSF's first pilot of a commercial platform and first for a public-facing tool. The first three months of the pilot are wrapping up, and the agency is gathering feedback and further training the model. The chatbot will be particularly useful for people outside larger universities who do not have access to dedicated grant offices. NSF plans to do more pilots to explore additional capabilities of the technology. The agency is also working on a journey map of data and AI initiatives across federal agencies to allow better insight and collaboration.
The Australian government has unveiled a National Robotics Strategy to encourage the growth of a local robotics and automation industry. The government plans to invest from the National Reconstruction Fund, the Industry Growth Program, and a clean energy fund to support this initiative. The National Robotics Strategy was announced by Science and Industry Minister Ed Husic at The Australian Financial Review Artificial Intelligence Summit in Sydney. The goal of the strategy is to position Australia as a global leader in robotics and automation, driving economic growth and job creation. The government aims to leverage the country's research and development capabilities to develop and commercialize robotics and automation technologies. The strategy will focus on areas such as healthcare, agriculture, manufacturing, and defense. It will also support the development of skills and talent in the robotics and automation industry. The government's investment in the robotics and automation industry is part of a broader effort to drive innovation and technological advancement in Australia.
Nobel laureate Paul Romer believes that the AI industry is currently in a bubble and may soon reach a limit in terms of productivity gains. He argues that foreign direct investment (FDI) is the key to economic growth, as it provides opportunities for workers to gain new skills and knowledge. Romer also highlights the limitations of AI in predicting and understanding rare events. However, Bill MacCartney, a computer science professor, suggests that current AI technologies can address these limitations through continued innovation. Romer emphasizes the importance of competition between the US and China in FDI, but suggests that projects like China's Belt and Road Initiative should focus on sustainable areas like real estate. He believes that the US and China should compete to build up cities in developing markets, spurring growth based on merit and benefiting the world. Romer also criticizes the idea of protecting infant industries and emphasizes the need for countries to let investors find the best opportunities in their markets. He expresses concerns about the bifurcation of technological spheres of influence between the US and China and calls for competition that makes the world better off.
Circle CEO Jeremy Allaire believes that the combination of AI and crypto innovations can boost GDP. He highlights the movement of value in the economy and how AI and crypto can introduce efficient risk intermediation. However, regulatory challenges remain a hurdle. Circle has secured an important license that may advance the role of USDC and stablecoins in the region. Allaire believes that AI and crypto will fuel GDP growth, but it may take time. He emphasizes the need for continued innovation and integration of AI into various sectors.