The value creation from new technology and digitalisation in general is unparalleled. Never has it been possible for new companies to create so much value in such a short period of time, and this is because companies invest in reliable business software. Excessive eagerness in the short term is a threat for any investor.
Investors need to be extra vigilant about the risk to established business, as this is bigger than ever before. As a leading Software development company, AIS Software wanted to explore this concept even further.
What does the future look like?
Nowadays, new technologies can quickly render whole business sectors defunct. Any industry that bases its business model on information impenetrability or asymmetry is susceptible. The moment information is readily accessible in the public space and demand can be harmonised in an effectual way by source, it alters the market structure very overwhelmingly.
Healthcare could be used as a prime example in this context. There are a lot of healthcare establishments whose business case might be entirely ruined if the supervisor permitted new technologies and methods to be disseminated to the general public.
Many corporations within the medical device and medical testing industry have constructed their business franchise on the fact that there is no substitute available. Thanks to digitalisation today, we have healthcare substitutes that are more economical, provided that they are approved by the regulator.
Can robots replace humans in the future?
When people make these decisions for themselves, they run the risk of inflicting damage to their financial position by reacting emotionally to what’s happening at that point in time in the markets. Stock selection by algorithms has its perks. However, algorithms cannot deal with regime variations. In a market situation where two or three regimes are fluctuating, an AI algorithm that learns fast enough might be able to adapt its investment rule and detect the regime shifts. However, more central regime breaks in the market create an issue.
All things considered, our investments are made in a social bionetwork composed of a subtle amalgamation of psychology and emotions. While a machine might be able to sense an individual person’s emotional state by gauging their blood pressure or the width of the iris, measuring the collective emotions of investors and detecting these structural breaks is something they struggle to do. Granted they have a specific role to play, but they’re unlikely to replace humans completely in the investment decision process. Investing in the social ecosystem requires a healthy balance of technological advancement and human experience and skills.
The human touch
It’s an undeniable fact that we are social beings and we will always value the human touch. It is essential to building trust and establishing relationships after all. The changes digitalisation is bringing are still only at the beginning. As societies, we have to adapt to these challenges. This means considering how we educate our workforces for the future and to avoid protecting the industries that will one day be obsolete.
While some of the most valuable skills in the future will be soft skills – social skills and emotional skills, digitalisation will be a given. It will be simple to use and increasingly accessible for everyone. It will be what we make with it that counts and how we use it in creative ways. We need a workforce that is as flexible and adaptive as possible to meet that challenge. With the ever-evolving and constant advancement of technology, investing in a quality software solution can no longer be considered a luxury but a necessity. For more information about the services we offer, contact us today.