Asian Development Bank: Three Actions Governments Can Take to Help to Tackle Climate Adaptation

Impacts of climate change are causing significant economic and social challenges, and there is an urgent need for good fiscal policy to prepare adaptation strategies.

Climate-related disasters in Asia and the Pacific have affected 800 million people and caused $400bn in losses recent years with developing countries the hardest hit.

While progress was made at the 2023 United Nations COP28, data shows that adaptation to climate change is crucial to lives, livelihoods, and economies.

Climate adaptation refers to economic and social adjustments to minimise losses and maximise opportunities. Low-income countries need stronger and better-financed adaptation strategies.

The substantial investments required cannot be a simple add-on to fiscal policy — especially given that countries in Asia and the Pacific are finding their fiscal space squeezed by economic challenges, including higher borrowing costs.

But there are ways that fiscal policy can be used to prioritise adaptation to climate change.

Fiscal risk-assessment must be improved to identify, assess, and disclose the impact of climate and disaster risks via four main channels: macro-economic shocks commodity shocks, infrastructure disruption, and financial sector risks. Other things to be considered include reconstruction costs, the role of state-owned enterprises and public–private partnership liabilities. Adaptation needs, including infrastructure sectoral resilience, must be considered, as must poverty reduction, public healthcare, and education.

The Philippines publishes an annual fiscal risk statement that includes a section on climate disasters. Policy makers should conduct multi-hazard climate- and disaster-risk assessments to analyse the average annual losses due to climate change. These will provide inputs for estimating the costs and benefits of investing in resilience and adaptation, inform investment decisions, and provide guidance on how to mitigate risk (through engineering design) or transfer risk (through insurance).

Fiscal risk management must be strengthened by improving risk identification and management and targeting investment to ensure effective handling of climate- and disaster-related risks through preparedness, reduction, and risk transfer.

Bangladesh, Indonesia, and Nepal have developed climate budgeting systems to help tag climate-related investments. Policymakers should integrate climate risk management into their public investment management systems.

There must be an optimisation of resource allocation, financing, and investment. This allows fiscal policies to mobilise more domestic resources and leverage private finance for investment in climate action. It includes tools such as carbon taxes to generate revenue, the phasing-out of fossil fuel subsidies, and the redesign of sovereign funds. Mongolia is considering allocating a portion of its fund to invest in green bonds.

These actions can be complemented by innovation. Resilient bonds can mobilise finance for investment in climate actions, while special-purpose vehicles can pool funds from multiple sources — including de-risking private investment in climate action and providing concessional capital. Debt-for-climate or debt-for-nature instruments could enable investment in appropriate action.

In Ecuador, a debt-for-nature conversion (a $656m sustainability-linked loan) helped support the effective management of 60,000 square km of marine reserve in the Galapagos, generating $459m in conservation savings and $1.1bn in fiscal savings.

The Philippines mobilised resources for the development of a targeted financing mechanism, the People’s Survival Fund. It provides grants to mainstream adaptation from the national government to local government units and build resilience at all levels of the economy and society.

Policymakers should consider this broad range of instruments to build more climate-adapted economies — but how should they select the best options? All countries need to adapt, and their benefits will be the highest if adaptation is holistically integrated into development plans.

To implement a structured approach, there must be funding and support for projects that target specific issues and provide wider benefits. This includes infrastructure, early warning systems, and new technologies. They should also remove hurdles to private investment by eliminating harmful subsidies, setting proper carbon prices, and sharing knowledge.

Fair redistribution policies should be designed with compensation plans for communities forced to relocate due to rising sea levels.

Once areas of intervention have been defined at the country level, cost-benefit analyses can be applied to adaptation programmes. Attention should be given to the distributional impacts to maximise the impact of spending while balancing efficiency and equity according to societal preferences and risk aversion.

Such a method requires strong knowledge of adaptation solutions, available good-quality data, and support from development finance institutions.

[caption id="attachment_26719" align="aligncenter" width="580"] Authors: Declan Magee is a principal economist in the Climate Change and Sustainable Development Department of the ADB. Agnes Surry is ADBI’s Deputy Head of Capacity Building and Training and Senior Economist. [/caption]

The views expressed are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its board of directors, or its members.


Women and STEM, We Can Do Better

“On International Women’s Day, it is crucial to reflect on the state of women in the technology sector and chart a course for a more inclusive and equitable future. Only one-in-five women and girls are currently working in the fields of science and technology. The statistics on female representation in the science and tech industry, can be aggressively improved with better career mentoring in our schools and encouragement from leaders in all aspects of education and business.

“Despite the remarkable advancements in AI, data and process automation, cloud computing, and a global talent shortage, we continually see so many talented women leaving the tech industry due to lack of career progression opportunities, female role models or company culture.  As AI and other technologies continue to influence the business models enterprises create, a broad mix of developer talent representing the enterprises’ customer base will become even more important.

“The barriers preventing women from accessing opportunities in science, technology, engineering, and math are not due to a lack of skills, but rather to persistent misconceptions and biases. The challenge lies in building a culture that values and supports the success of women in these fields. It is about creating an environment where women can excel in various roles, from research and development to leadership and innovation and take risks that drive high rewards of achievement.

“As the landscape of IT evolves, embracing a new era for sustainability, it is crucial to recognise the skills required are not bound by gender. Women possess a diverse range of talents essential for driving scientific advancements. This year’s UN assembly’s theme for the International Day of Women and Girls in Science, “Think Science ... Think Peace,” prompts us to consider how we can best foster inclusive leadership while contributing to a harmonious and sustainable future.”

Quote from Linda Dotts, Chief Partner Strategy Officer, SS&C Blue Prism


Avatar Influencers are Storming Up the Earnings Charts — and Creators Stand to Make Some Healthy Profits

Virtual and AI personas have the highest earning potential for single Instagram posts...

Digital personas created via AI or software have had a surge in popularity on platforms such as Instagram — leading to significant earnings for their creators.

Enterprise solutions provider SAP.com delved into the earnings potential of the top 60 “human replica” AI influencers — those designed to resemble humans, as opposed to animal or cartoon-based characters.

By analysing follower numbers and using an earnings calculator, the study estimated potential income for each sponsored post, shedding light on a financially rewarding realm of marketing.

Lu do Magalu is the AI influencer raking in the most from a sponsored Instagram post: £26,200.

@magazineluiza, featured on the cover of Vogue Brazil, was created as part of a promotion for iBlogTV by Magazine Luize in 2009 — and has posted to Instagram 80 times in the past 30 days. If monetised, her creators could have made up to £2.09m in a month.

Miquela Sousa ranks second among AI influencers, commanding £4,200 for each sponsored post. Known as @thalasya_ on the platform, she identifies as the “first Indonesian digital human character”.

Having last posted to her main feed 26 months ago, if her creators had maintained a schedule of one sponsored post per month, they could have amassed up to £109,200 by now. That sum equates to 20 years of earnings for the average Indonesian worker.

Leya Love comes in joint fourth and could earn an estimated £4,200 per post. A creation of Cosmiq Universe AG, @leyalovenature blends digital modelling with environmental advocacy. She's even listed as a co-author in the book Life Values: When Dreams Become True, with fellow Cosmiq avatar Aya Stellar.

Love has posted seven times in the past month; had those posts been sponsored, she could have earned around £29,400. That’s how much the average UK worker makes working full-time for 10 months.

The Ten Top-earning Virtual Influencers

Rank | Influencer | Tag | Followers | Earnings per post
1. Lu do Magalu | @magazineluiza | 6,674,629 | £26,200
2. Miquela Sousa | @lilmiquela | 2,717,368 | £16,400
3. Alara X | @iamxalara | 509,238 | £4,600
=4. Thalasya Pov | @thalasya_ | 461,801 | £4,200
=4. Leya Love | @leyalovenature | 458,238 | £4,200
6. noonoouri | @noonoouri | 424,375 | £4,000
7. imma | @imma.gram | 395,432 | £3,800
=8. Shudu | @shudu.gram | 241,420 | £2,600
=8. Kyra | @kyraonig | 238,482 | £2,600
10. Bermuda | @bermudaisbae | 236,890 | £2,500

Noonoouri, in sixth place, could earn up to £4,000 per post. She is recognised for her chic style and advocacy for veganism and sustainability. It is estimated that she could earn up to £16,400 each time.

@lilmiquela’s creators, Trevor McFedries and Sara DeCou, don’t have to rely on sponsored posts — because their creation, Lil Miquela, has been a steady earner for their company, Brud, with collaborations involving BMW, Samsung, and Calvin Klein — which sees the digital influencer share a kiss with Bella Hadid.

Alara X places third and could earn up to £4,600 per post. The profile has posted 32 times in the past year. If monetised, the creators could have generated up to £147,200 since November 2022. That’s 32 percent more than the average salary of a principal software engineer at Microsoft.

IAMX Digital Human created @iamxalara as one of the first human-like digital avatars, with the aim of bringing it into the Metaverse via a “new era of interactive storytelling”.

Thalasya Pov ranks fourth in earning potential, and attracted more than 424,000 followers to her page @noonoouri. Noonoouri, created in 2018 as a Metaverse avatar, has been involved in lucrative endorsement deals with Marc Jacobs and Balenciaga — and was recently signed by Warner Music. Her debut single Dominoes has received more than 660,000 Spotify plays.

Imma ranks seventh, and garners potential earnings of £3,800. @imma.gram's 395,000 followers receive a blend of contemporary fashion and art, making Imma a stand-out influencer. She’s worked with brands such as Porsche Japan, Ikea, and Puma.

Shudu and Kyra share the eighth position. Shudu, the self-proclaimed world’s first digital supermodel, has amassed more than 240,000 followers at @shudu.gram. That allows a charge of up to £2,600 per post, and Kyra, @kyraonig — the self-proclaimed first virtual influencer in India — has over 237,000 followers which justifies a charge of up to £2,600.

Bermuda rounds out the top 10 with potential earnings of £2,500. @bermudaisbae, created by designer Christian Guernelli, has amassed 236,000 followers and is known for edgy and provocative content.

A spokesperson from SAP said the study revealed the earning potential of AI-generated influencers. As they gain followers, they become “an increasingly important aspect of social media marketing that brands cannot overlook”.

Advances in AI image-generation are “democratising the field of influencer marketing”. Virtually anyone could create a digital avatar, the spokesperson said, “which opens up opportunities for brand collaborations that were once exclusive to traditional celebrities and early social media influencers”.


Defining Client Expectations — and  Quietly Exceeding Them — is the XM Philosophy That’s Proving a Winner

There are plenty of brokers out there — but there aren’t many like XM — a powerhouse that harnesses innovation to create tailored, lightning-fast trades.

New brokers are entering the online trading world every day, but some names tend to stand out. XM is one of those names. Amassing over 10 million clients since it was founded in 2009, XM’s meteoric rise has taken it to true global status - and it has firmly established itself as a respected industry leader. XM has earned that reputation for reliability and trustworthiness. Achieving that has required a unified policy of business principles, and XM’s first focus was to prioritise client needs. That dedication is evidenced in its products, services, and the dedication of its customer experience teams. The broker delivers unparalleled trading products and services to keep up with — and stay ahead of — diverse global demand. It not only achieves that, it does so while offering personalised services that suit the individual needs of every trader.

"The broker delivers unparalleled trading products and services to keep up with — and stay ahead of — diverse global demand."

XM offers over 1,000 trading instruments, including some 50 currency pairs and CFDs on metals, energies, and stock indices - with the spreads as low as 0.0. It offers low-cost accounts that can be tailored to meet the multilevel needs of all traders.
These products are built on a solid technological foundation. XM uses its cutting-edge equipment and expertise to continue a tradition established over a decade ago — pioneering lightning-fast execution, and a strict “no re-quotes and no rejections” policy.

Almost all trading orders — over 99 percent of them — are executed in less than a second. This means traders can rely on the swift and reliable execution so essential in the top echelons of online trading.
One of the firm’s crowning glories is the wealth of education and learning resources that it bestows on traders — at no charge. Free webinars, live trading sessions, offline workshops and tutorials help traders of all levels to improve their skills and achieve their goals. Education is key, and XM delivers just that through expert, experienced trainers. The company’s specialists are standing by to instantly provide traders with the real-world tools and resources needed for success.

Underpinning XM’s entire offering is that uncompromising commitment to its customers. The firm takes pride in going above and beyond to meet the unique and variable needs of every trader. Communication is another key to success, and with a support team versed in 30 languages — backed by 900 professionals with years-long experience in the financial industry, XM is a broker that delivers. Traders understand that, and are putting their trust in the firm they know will deliver for them — no matter where they are, or how long they’ve been trading.


Get Your Motor Running — and Dial the Time Machine Back a Few Decades to Find Perfection

When cool is king, you can’t beat two wheels — and the golden era of motorcycling conjured up some gems that are still with us, in spirit and in style.

If the motorcycle revolution started, as many contend, in the 1970s, where exactly was ground zero? The introduction of the Earth-shattering Honda CB750 four, or the Kawasaki Z1 that swiftly followed its tyre tracks?

Both share distinct silhouettes, typical of the 1970s and 1980s. In that alone, they are sensory delights, reverberations from a pivotal era that extend to the roar of engines uncompromised by EU and UK noise- and pollution controls — at least to the ear of the enthusiast. You can tell the bikers in a crowded room; they’re the ones who break away from what they’re doing and cock their heads as a bike blasts past outside, trying to deduce the make, or at least the engine layout.

We’re talking about a time that prized freedom and an air of rebellion, and bikes became cultural icons of that mood. They were engineering marvels of their time, from Harley-Davidson’s thumping Shovelhead models to the Japanese “rice rockets”, as they were disparagingly referred to by rednecks when they hit the international market.

The lasting charm of older bikes lies in their design as much as their engineering achievements — and their role in defining the temporal zeitgeist. They shaped popular culture via cinema, music, fashion, and social movements.

Let’s take a look at the models and brands that epitomised the age and have had an enduring influence on bikers — and the machines they ride in the 2020s.

A Golden Era

Motorcycles suddenly moved from transport options to icons of a burgeoning subculture. These were decades of radical experimentation.

For Europe, the UK and the US, the bikes that first struck a chord with the public were either American or British. Harley-Davidson, BSA, Royal Enfield and Triumph — all still going strong in 2023 — were the go-to marques.
But the Japanese had been quietly building a two-wheeled empire they were about to unleash. Honda, Yamaha, Suzuki, and Kawasaki — the "Big Four" —rocked the world with machines that didn’t just change the game; they started a whole new one.

The bike most credited for this revolution is the Honda CB750, introduced in 1969. It was the first "superbike", with an overhead cam inline four engine, disk brakes, and electric start — rare for the day — as a standard feature. (Manufacturers wisely continued to fit manual kick-start levers to their bikes in these days, giving riders a fall-back option if the starter or battery died.)

In the 1980s, more changes were ushered-in — all of them exciting. This was the dawn of models like the Suzuki GSX-R series and Kawasaki Ninja, which brought near-racetrack performance to the road. This period may be notable for its tech advances, but progress was not always even. The engines, sometimes liquid-cooled by the ‘80s, were bursting at the seams with horsepower and torque. Unfortunately, the frames and brake systems often lagged performance.

The push for power might have made marketing sense, but it gave bikes a bad name. Some riders discovered, to their cost, that you can get too much of a good thing. Wobbles, weaves and other disasters could accompany high-speed thrust, and quickly take the fun out of ton-up blast.

Today, electronic rider aids — on top-range, high-power models, anyway — include lean-sensitive traction control, ABS, Bluetooth compatibility and navigation systems. The introduction of digital ignition and fuel injection systems marked a significant shift to electronic integration.

Motorcycles were gaining mainstream appeal, and the biker image evolved from “outsider” to emblem of enchanting possibilities. Each brand contributed to what we may as well continue to call the Golden Era. Harley-Davidson's Evolution engine took over from the notoriously unreliable shovelhead; it was night and day in terms of reliability and performance. Honda stayed true to four-cylinder powerplants, from the little 350 onwards, and upwards. These engines were a clockmaker’s delight, smooth, grunty, and rugged. Kawasaki, Yamaha and Suzuki followed, with Kawasaki the rising star. Its Z1 was perfectly styled, perfectly named, and followed by the equally cool Z1000J.

BMW's R series of boxer (horizontally opposed) twins won buyers over with their ability for trouble-free, long-distance touring. While Yamaha did enter shift to multicylinder engines, one of its twins — the XS650 — was once the one winning hearts. It has been described as “a Triumph that actually starts and runs” (British bikes were developing a bad reputation, back in the day). The vertical twin had the Brit-bike feel with Japanese precision. It also lent itself to customisation, as did Harleys. That was a niche to nurture — and modern twins from Royal Enfield, Triumph, born-again BSA and Norton feature styling that goes all the way back, tugging at the heartstrings and wallets of enthusiasts from the day.

The unexpected arrival of the GSX-R Series from Suzuki pumped up the performance stakes, in terms of horsepower and handling. Kawasaki’s GPz900 Ninja flew its own flag with pride, becoming synonymous with speed and agility.

Engineering Marvels and Innovations

The shift to liquid-cooled engines, electronic ignition and fuel injection were key moments in motorcycle engineering. There were also, thankfully, advances in frame design, braking and suspension systems to tame the power that was being unleashed. A focus on aerodynamics and rider-centric designs led to more comfortable and efficient machines.

Modern motorcycles stand on the foundational technologies of the ‘70s and ‘80s. The integration of digital technology is just the most recent frontier to be breached.

The Collector Scene

Old bikes are having a moment. What was once a cheap banger is now an “appreciating classic”. The lure of big money has attracted enthusiasts of another stripe.

Restoration combines mechanical skill and historical appreciation; do it right, with the right model, and you’re onto a good thing. An original, good condition Z1 can easily fetch a five-figure sum. Shows and club events provide platforms for showcasing these vintage machines — as do auction halls. Lucky restorers, originally keen only to preserve a piece of motoring history, have come some into staggering windfalls.

Where to Now?

Today's designs pay homage to their predecessors with BMW R9Ts, Triumph Bonnevilles, Speed Twins and Thruxtons and Enfield Interceptors blending modern tech and production standards with classic aesthetics. Ducati, Benelli, and even Kawasaki offer “period piece” models with all the perks of modern engineering.

The motorcycles of the ‘70s and ‘80s live on, literally in the case of cherished older bikes, and figuratively in the seeds sown by their ancestors. Classic DNA has proven enduring. Yes, there are new performance and safety benchmarks — some bikes now churn out over 200 horsepower, and have a power-to-weight ratio of 1bhp:1kg. That’s F-1 territory. Does anyone really need that?

Probably not, and the future of motorcycling is all the better for that realisation. Rebellion? Sure, there’s still a touch of that. But outsider or outlaw status is no longer the price of entry.

For most, cool still is. The Golden Era bikes have that in spades.


World Bank: How to Accelerate Growth and Progress in Developing Economies

Amid a barrage of shocks during the past four years, the global economy has proved to be surprisingly resilient. Major economies are emerging mostly unscathed after the fastest rise in interest rates in 40 years—without the usual scars of steep unemployment rates or financial crashes. Global inflation is being tamed without tipping the world into a recession. It is rare for countries to bring inflation rates down without triggering a downturn. But this time a “soft landing” seems increasingly possible.

Yet beyond the next two years, the outlook is dark. The end of 2024 will mark the halfway point of what was expected to be a transformative decade for development—when extreme poverty was to be extinguished, when major communicable diseases were to be eradicated, and when greenhouse-gas emissions were to be cut nearly in half. What looms instead is a wretched milestone: the weakest global growth performance of any half-decade since 1990 with people in one out of every four developing economies poorer than they were before the pandemic.

[caption id="attachment_26740" align="aligncenter" width="582"] Authors: Indermit Gill Chief Economist and Senior Vice President for Development Economics at the World Bank & M Ayhan Kose Deputy Chief Economist and Director of the Prospects Group at the World Bank[/caption]

The World Bank’s latest Global Economic Prospects forecasts imply that most economies—advanced as well as developing—are set to grow more slowly in 2024 and 2025 than they did in the decade before COVID-19. Global growth is expected to slow for a third year in a row—to 2.4 percent—before ticking up to 2.7 percent in 2025. Those rates, however, would still be far below the 3.1 percent average of the 2010s. Per-capita investment growth in 2023 and 2024 is expected to average just 3.7 percent—barely half the average of the previous two decades. Without corrective action, global growth will remain well below potential for the remainder of the 2020s.

"If each developing economy that engineered such an investment boom in the 2000s and 2010s were to repeat the feat in the 2020s, prospects for developing economies would move a third of the way closer to their full economic potential."

Our forecasts may seem dismal. Yet the policy analysis provides hope.

Global Economic Prospects includes the first systematic assessment of what it takes to generate the most desirable kind of investment boom—one that comes with an increase in per-capita income growth, a step-up in productivity, and a reduction in poverty. Since the 1950s, countries across the world have managed to generate nearly 200 windfall-producing investment booms—episodes in which per-capita investment growth accelerated to 4 percent or more and stayed there for more than six years. The secret sauce for sparking such episodes was a comprehensive policy package: consolidation of government finances, expansion of trade and financial flows, stronger fiscal and financial institutions, and a better investment climate for private enterprise.

If each developing economy that engineered such an investment boom in the 2000s and 2010s were to repeat the feat in the 2020s, prospects for developing economies would move a third of the way closer to their full economic potential. If all developing economies also repeated their best 10-year performance to improve health, education, and labor force participation, they would close most of the remaining gap. In other words, the potential growth in developing economies in the 2020s would be similar to what it was during the 2010s.

For the two-thirds of developing economies that rely on commodity exports, an additional avenue is open. They can do better simply by applying the Hippocratic principle to fiscal policy: first, do no harm. These economies are prone to debilitating boom-and-bust cycles because commodity prices can rise or fall suddenly, and their fiscal policies tend to make matters worse. Fiscal procyclicality is 30 percent stronger in commodity-exporting developing economies than it is in other developing economies. Fiscal spending among commodity exporters also tends to be 40 percent more volatile than in other developing economies.

The result is a chronic drag on their growth prospects. The drag can be reduced by—among other things—putting in place a fiscal framework to discipline government spending, adopting flexible exchange-rate systems, and avoiding restrictions on international movements of capital. If instituted as a package, these policy measures could help commodity exporters in developing economies increase per capita GDP growth by 1 percentage point every four or five years.

The 2020s have so far been a period of broken promises. Governments across the world have fallen short of the “unprecedented” goals they promised to meet by 2030: “to end poverty and hunger everywhere; to combat inequalities within and among countries;…and to ensure the lasting protection of the planet and its natural resources.” But 2030 is still more than a half-decade away. That is long enough for emerging markets and developing economies to regain some of the lost ground—if their governments act now.


Easter Eggs - Big Business for Egg Farmers?

Easter is traditionally a period of heightened activity for egg farmers, as the demand for eggs surges due to the holiday's customs and culinary traditions. This seasonal spike can indeed translate into big business for egg producers, but it's also a period that highlights the broader economic, environmental, and ethical challenges facing the egg farming industry.

Economic Impact

The period leading up to Easter sees a significant rise in egg prices, reflecting the increased consumer demand. In recent years, egg prices have climbed substantially around the Easter season. For instance, a dozen large Grade A eggs reached $2.01 compared to $1.60 per dozen the previous year, marking a 25.5% increase. This trend is a boon for egg farmers, who can capitalise on the higher prices. However, the industry is also facing challenges from the ongoing threat of avian influenza, which has led to the culling of millions of commercial chickens and turkeys, including egg-laying hens, in efforts to control the spread. Such outbreaks can devastate egg production capacity and lead to even higher prices due to reduced supply, underscoring the vulnerability of egg farmers to disease outbreaks.

Environmental Considerations

The transformation of the egg industry from small-scale operations to large, intensive farms has raised significant environmental concerns. The United States, for example, produced 5.4 million tons of eggs, with India, Japan, and Mexico also contributing millions of tons to the global supply. This massive production scale is achieved through technological advancements and a push for efficiency but comes at a cost to the environment.

The environmental footprint of intensive egg production includes the emission of greenhouse gases such as methane, nitrous oxide, and ammonia from manure waste. Ammonia, in particular, can cause water and land toxicity when not properly managed. Moreover, the production and transportation of chicken feed contribute significantly to carbon dioxide emissions, further exacerbating the environmental impact.

Ethical and Welfare Concerns

Intensive farming practices have also raised concerns about the welfare of laying hens. The majority of egg-laying hens in the United States are kept in battery cages, which restrict their movement and can lead to stress and physical health problems. Despite some farms adopting free-range housing systems, the cramped conditions of battery cages remain prevalent. The European Union banned the use of battery cages in 2012, highlighting the ethical concerns associated with intensive egg farming.

The Way Forward

As consumers become more aware of the environmental and ethical implications of egg production, there is a growing demand for eggs from free-range and organic systems. These systems are perceived as more humane and environmentally friendly, although they also come with higher production costs. To mitigate the environmental impact of egg production, the industry is exploring environmental technologies and sustainable practices. Consumers can play a role in supporting more sustainable egg farming practices by choosing eggs from sources that prioritise animal welfare and environmental sustainability.

In conclusion, while Easter represents a significant opportunity for egg farmers to capitalise on increased demand, it also brings to the fore the complex challenges facing the industry. From economic vulnerabilities due to disease outbreaks to environmental and ethical concerns, the egg farming industry is at a crossroads. The path forward will likely involve a balance between meeting consumer demand, ensuring animal welfare, and mitigating environmental impact.


Movie Review - Napoleon: Flawed but Fascinating Historical Tribute to an Enigmatic Emperor

Ridley Scott’s Napoleon gets the mood just right, captures all the emotion and torment ... but sometimes takes liberties with the truth.

This historical epic directed by Ridley Scott is a masterful depiction of the French emperor's rise and fall.

Joaquin Phoenix excels in the title role, conveying Bonaparte’s charisma, ambition, and cruelty with nuance and complexity. The film follows his story, from modest beginnings as a Corsican military officer to his rapid rise to power, eventual exile, and death.

Phoenix's performance is the epic's heart and soul. With pleasing subtlety, he conveys the emperor's personality. It’s a challenging role; Phoenix adapted his physique to accommodate Napoleon's known mannerisms and speech patterns. It’s a portrayal that is both sympathetic and disturbing, revealing the paradoxes that created such a fascinating individual.

Phoenix is well-supported, and Vanessa Kirby, as Josephine, gives an enthralling performance. She communicates the character’s fortitude, perseverance, and devotion, even as their relationship deteriorates. Jodie Comer is outstanding as Napoleon's sister, Élise Bacciocchi, who was a bright and fiercely independent woman, as devoted to her brother as Josephine.

"The acting, camerawork, lighting, and colour capture the essence of Napoleon Bonaparte — and that of Josephine, the love of his life."

The marriage is a turbulent one, defined by passion and conflict. The couple’s bond is electrifying from the start, fired by mutual admiration and a shared sense of ambition. Napoleon is charmed by her beauty and refinement, while Josephine is captivated by his magnetism. Their marriage, initially a political arrangement, soon transforms into a true love affair.

An affair riddled with tension and insecurity, though. Napoleon's unquenchable ambition and unrelenting quest of power detract from his personal life, leaving Josephine feeling neglected. Her socialite status — and Napoleon's inability to sire an heir — put further strain on things.

Love persists; even when the emperor explores other relationships, he remains emotionally committed. Josephine reciprocates with love and support, even when her partner’s actions cause her pain.

The relationship could be seen as a microcosm of the French Revolution and the Napoleonic Wars, times of enormous upheaval and change. The couple’s relationship progresses from love to a complex and difficult alliance.

The tale is ultimately a tragic one. Napoleon annuls the marriage due to concerns about that missing heir, and a need for stability. Josephine dies heartbroken. Despite this finale, the sense of romance endures. This is a story about passion, ambition, treachery, and undying love.

Scott's direction is superb, with magnificent battle scenes and grand panoramas. The set design is exquisite, and the costumes are beautiful. While Napoleon is visually gorgeous and emotionally moving, it takes some artistic licence with historical facts.

Although cinematic cannonballs are fired at the Egyptian pyramids, there is no proof that such an attack took place. In another lapse, Napoleon is shown witnessing Marie Antoinette's execution in 1793. He was stationed in Toulon at the time — and did not arrive in Paris until after the event. In Scott’s account, Napoleon and the Duke of Wellington met in person — but their sole meeting was at the Battle of Waterloo, and they didn’t meet face-to-face. The cinematic Napoleon is visibly younger than Josephine, but the real age difference between them was just six years. The idea that he came from a modest background is also misleading; his family came from Corsican nobility.

But the emperor's military operations are creatively and faithfully depicted. The chaos and horror of conflict are plain to see. The filmic wars feature a huge cast of extras (some of them CGI, no doubt), and Napoleon's army's tactics and methods are well represented. There is no skimping on the violence and brutality of war.

Some of the conflicts are shown as more exciting and frightening than they may actually have been. Napoleon's personal experiences on the battlefield sometimes eclipse the larger backdrop of the conflicts in which they took place. But who cares? At its heart, this film is a celebration of an emotional, if often frightening, marriage. Josephine’s name is never far from Napoleon's lips.

Martin Phipps' musical soundtrack is melancholy but evocative, and perfectly matches the generally gloomy tone of the epic. The soundscape combines symphonic elements and Corsican folk music — and makes good use of silence. Phipps avoids orchestral flourishes and sticks to his restrained and subtle style. This generates a sense of intimacy, allowing the viewer to interact with the emotional heart of the picture. The music perfectly underscores the grim events, and the resulting ambiance of gloom. It's haunting and moving, and will linger after the final credits have rolled.

The photography is also superb, capturing the sweeping grandeur of Napoleonic France as well as an intimate and emotional portrayal of the emperor. Polish born cinematographer Dariusz Wolski deploys a range of techniques, such as wide vistas and extended takes, to convey that sense of grandeur. There is no shortage of intimate and personal moments. Close-ups and handheld camerawork bring us closer to Napoleon, allowing us to almost feel his emotions and sense his flaws.

Lighting is effectively handled, with dramatic contrasts of light and shade. Wolski uses a subdued colour palette that reflects the grim tone — and the national mood of Napoleonic France. Napoleon is framed in a way that accentuates his solitude and loneliness, while emphasising his power and authority.

Overall, this is an outstanding accomplishment that propels the art of film to new heights. The acting, camerawork, lighting, and colour capture the essence of Napoleon Bonaparte — and that of Josephine, the love of his life.


The Most In-Demand Office Amenities Around Europe

Privacy appears to be front-of-mind for office workers globally, with conference rooms, private office space and lockers prioritised.

Health and privacy are key concerns for workers in Europe — standing desks are this year’s surprise office amenity, with a search volume of over 50,000. Meeting and event space is also in high demand, with a combined UK search volume of 4800.

Well-designed office space incorporating suitable features can significantly impact employee satisfaction. To enable employers to understand the global workforce’s most in-demand office amenities, office design and fit-out firm Studio Alliance researched search trend data.

The Five Most Popular Office Amenities Globally

Office Amenity/ Features - Search Volume

Conference Rooms - 49,500
Private Offices - 5,400
Lockers - 4,400
Phone Booths - 4,400
Ergonomic Furniture - 1,900

Privacy has emerged as a key concern for the global workforce. Conference rooms, private offices and lockers are the top three office amenities. Employees have spoken out on their desire for private meeting spaces, in addition to space for personal belongings.

The drive for privacy and security at work is probably a result of the rise of open-space layouts that favour flexibility and a fluid structure.

"Conference rooms are still popular, as they provide a dedicated space for collaborative meetings and discussions, fostering communication."

Office lockers are a simple way to provide security and organisation options and support flexible working, reduce clutter and prevent theft. They also promote a sense of autonomy and privacy, data show.

Health is at the top of the list for European workers.

Across the UK, France, Italy, Poland and Belgium, demand for standing desks is higher than all other office amenities. This suggests a new emphasis on health and wellbeing. The desks offer ergonomic benefits, reducing the risk of sedentary issues and promoting better posture. They can also enhance energy and focus, contributing to improved productivity.

In the UK, the search volume for conference rooms and event spaces totals 4,800, while globally, private offices and conference rooms together generate a search volume of 54,900. There’s a growing preference among employees for diverse workspaces promoting productivity, enhancing collaboration, and providing a sense of freedom.

Conference rooms are still popular, as they provide a dedicated space for collaborative meetings and discussions, fostering communication.

Event spaces are invaluable and versatile areas for meetings, presentations, and team-building activities. Particularly crucial in the context of a post-Covid, hybrid-working world, well thought-out spaces help maintain a strong company culture by offering a change of environment, reducing monotony, and facilitating team interaction.


A Simple Man with a Simple Plan: Saving the World Via Commitment to a Greener, Cleaner, Future…

The head of Thai group Bangchak, Chaiwat Kovavisarach, speaks to CFI.co about his vision for the future of clean energy

[caption id="attachment_26755" align="alignright" width="229"] Group Chief Executive Officer and President: Mr Chaiwat Kovavisarach[/caption]

As the Bangchak Group marks its 40th anniversary in 2024, embarking on its fifth decade of operation, the Thai company remains fully committed to its position as a leader in the field of energy transition.

“We recognise the importance of addressing and balancing the ‘energy trilemma’ in shaping the future of our industry,” says Group CEO and president Chaiwat Kovavisarach.

Bangchak knows well that navigating the complexities of the energy-transition space demands significant time, investment, and strategic R&D. “We are dedicated to fostering a sustainable business and ecosystem that integrates clean-energy development, carbon management, and future fuel solutions.”

Mr Chaiwat says his company vision – Crafting a Sustainable World with Evolving “Greenovation" –   encapsulates a commitment to driving innovation and transformative change for a more sustainable world.

“With our BCP 316 NET Plan, Bangchak Group spearheads the transition towards a low-carbon society,” the CEO says. “Our targets are to achieve carbon-neutrality by 2030, and net-zero greenhouse gas emissions by 2050.”

This plan has four strategic dimensions.

Breakthrough performance (efficiency and process improvement of 30 percent)

Conserving Nature and society (green and blue carbon – 10 percent)

Proactive business growth and transition (Green Portfolio, future technology, and carbon offset – 60 percent).

“We’re advancing our clean energy initiatives through BCPG, encompassing solar, wind, hydro, natural gas, energy transmission, and storage,” says Mr Chaiwat. “Our bio-based products are being developed through BBGI. We are set to start commercial production of sustainable aviation fuel (SAF) derived from used cooking oil.”

The company is dedicated to supporting the net-zero target, including business and the promotion of accompanying policies, standardisation, and engaging with stakeholders. This will include:

Providing low-carbon fuels and services through BFPL to reduce transport emissions

Introducing an EV motorcycle-rental service with an automatic battery-swapping network

Co-founding the Carbon Markets Club to facilitate carbon credit-trading, and elevate public awareness of climate change and mitigation strategies

In 2023, BCPG launched the Carbon Footprint of Organisation Calculator (CFO) for its members, which can be used to conduct self-assessment of emissions to support emission reduction.

Last year was a historic one for Bangchak Group, with some stand-out developments. “We strengthened our business by acquiring the common shares of Bangchak Sriracha Public Company Ltd (formerly Esso Thailand),” says Mr Chaiwat. “This strategic acquisition enriched our asset base with an oil refinery, oil terminal network, and service stations nationwide, reinforcing our position in the energy sector.”

The group also pioneered Thailand’s first SAF-production unit. Once SAF is ready for commercial operations (anticipated for Q1/2025), it is likely to pave the way for a “Book and Claim” system that supports eco-friendly travel.

Bangchak prides itself on being at the forefront of the eco-revolution, pioneering various initiatives. It was the first to commercialise renewable energy (gasohol and biodiesel) in the Thai market. It also built Thailand’s first solar-power plant in Ayutthaya province, paving the way for future expansion.

Bangchak was the first Thai company to invest in lithium mining, an essential element for battery production.

Bangchak Phra Khanong Refinery has transformed into a complex eco-refinery for Thailand’s first and only sustainable aviation fuel (SAF) producer, derived from used cooking oil. SAF has the potential to significantly reduce CO2 emissions by up to 80 percent. There has been expanded synthetic biology (“SynBio”) competency, with the construction of South East Asia’s first large-scale biotechnology plant (CDMO).

ESG is an integral part of Bangchak's business practices. The company is committed to developing sustainable innovations in harmony with the environment – and society.

Bangchak emphasises balance within these principles, being accountable to all stakeholders, and taking responsibility for environmental protection while upholding good corporate governance.

The development of biofuels – Gasohol and Biodiesel – form an exciting path for the group. Blending petrol or diesel with ethanol and methyl-ether produced from agricultural crops reduces the volume of imported crude oil, and supports the livelihoods of sugarcane and cassava farmers.

SAF production aligns with the Bio-Circular-Green or BCG Economy Model, while the Winnonie-EV motorcycles service platform provides access to clean mobility solutions.

And powering vehicles is only part of it. There is also the Bio-Cup from Inthanin Coffee. This is Bangchak Group’s coffee brand introduced in compostable cups to reduce single-use plastics.

“Bangchak Group faces several mid- to-long-term challenges as we navigate the evolving landscape of the energy sector,” the CEO admits. “A primary concern is sustaining the momentum of our initiatives while effectively balancing the energy trilemma.

“We are committed to fostering technological innovations that can significantly enhance operational efficiency and resilience. We remain vigilant and adaptable, prepared to respond to disruptive developments that may emerge unexpectedly.”

The group’s diverse business portfolio presents opportunities – and challenges. “We are focused on fostering synergy and synchronisation across this diverse portfolio to optimise efficiency and mitigate potential disruptions.”

To ensure the transition to clean, renewable, and sustainable energy, the group makes substantial investments in R&D. “Energy Storage is critical,” says Mr Chaiwat, “and the future of energy will be one of diversity, as no single solution can meet the growing demand.

“We anticipate considerable volatility in energy prices during this transformative phase. Such fluctuations pose challenges in maintaining a balanced energy trilemma.

Mr Chaiwat is inspired by the interconnectedness of global business, which underscores the universal need for energy and collective responsibility to address climate change.

“The availability of sustainable energy solutions signifies a promising future,” he adds. “It's only a matter of time before we integrate these solutions. As a large corporation, we can make meaningful contributions in driving this transition and shaping the future of energy.”

The transformative potential of generative AI, which could revolutionise the energy sector and various other industries, is also part of the game plan. “AI is a powerful tool that can help us achieve what may seem impossible.

“The fast-paced and dynamic nature of the business world requires the continuous evolution of the energy sector – and our ongoing adaptation and innovation efforts.”

In the dynamic and challenging business landscape, Bangchak seeks to maintain its success through effective management that drives performance and aligns with broader societal and environmental goals.

“From very early on, we have been committed to sustainable business innovation in harmony with the environment and society, and always stay ahead of the curve.”

Like many company leaders, Mr Chaiwat sees people as his group’s greatest strength. “Our employee culture is to be virtuous, knowledgeable, and to contribute to others.” Core Values include innovation, agility, mobility, boldness, customer empathy, passion, and ownership.

“At the helm of Bangchak, I am tasked with crafting a compelling, forward-looking vision that resonates with our team and inspires them to strive for excellence,” says the president and CEO. “Bangchak’s core values were revised to embrace a forward-thinking, can-do mindset.

“Agility and mobility are critical values in today's dynamic business environment. To drive innovation, a leader must accommodate boldness, creativity, experimentation, and continuous development – and provide necessary support, incentives, and opportunities.

“Most importantly, effective leadership hinges on inspiring and uniting others. A corporate leader must be adept at rallying the team and cultivating a sense of unity and enthusiasm that drives collective efforts toward achieving shared goals and realising the organisational vision.”


How Will Artificial Intelligence Affect the Economy?

Artificial intelligence (AI) is the name given to the broad spectrum of technologies by which machines can perceive, interpret, learn, and act by imitating human cognitive abilities.

Automation was created to better fulfill repetitive tasks, increasing productivity. AI, with its impressive rate of evolution, can produce new content: texts, images, new computational codes, possibly medical diagnoses, interpretations of data, and so on. It is no coincidence that an AI-based technological revolution is predicted.

I like the way Jesús Fernández-Villaverde of the University of Pennsylvania illustrates the differences between automation and AI:

“Artificial intelligence is not designing a robot that will put a screw in a car on a production line when the time comes, but designing a robot that knows how to interpret that the car arrived crooked to the left or that the screw is broken, and that will be able to react sensibly to this unexpected situation.”

AI will have consequences in areas beyond the economy, including national security, politics, and culture. In the economy, it promises to reshape many professional functions, as well as the division of labor, and the relationship between workers and physical capital. While the impact of automation has been on repetitive work, the impact of AI tends to be on tasks performed by skilled labor.

What effect will AI have on productivity and economic growth, and on social inclusion and income distribution? The impact on work processes and the labor market will be a key element in answering these questions.

It can be anticipated that, in segments of the work process where human supervision of AI will continue to be necessary, the trend will be a substantial increase in productivity and demand for work. In other segments, AI could lead to significant displacements or the simple elimination of jobs. As Daron Acemoglu and Simon Johnson put it in an article in the December edition of the International Monetary Fund’s Finance and Development magazine, “to support shared prosperity, AI needs to complement workers, not replace them”.

The systematic increase in aggregate productivity could, in principle, reinforce economic growth and, thus, underpin increases in aggregate demand, generating employment opportunities that would compensate for the destruction of jobs. This evolution could also lead to the emergence of new sectors and professional functions, while others disappear, in a dynamic that will go beyond mere intersectoral reallocation.

In addition to the effects on employment and wage-income distribution, income distribution will also depend on the impact of AI on capital income. This will tend to grow in activities that create and leverage AI technologies or have stakes in AI-driven industries. Depending on the implications in terms of the ‘market power’ of firms, there will be effects on the distributions of capital income and between capital and labor.

On January 14, the IMF released the results of exploratory research into the impacts of AI on the future of work . An estimated 60% of jobs in advanced economies will be affected, with the percentage falling to 40% in emerging economies, and 26% in low-income countries, because of differences in their current employment structures (Figure 1).

[caption id="attachment_26761" align="aligncenter" width="558"] Figure 1[/caption]

The report estimated that half of the jobs impacted will be affected negatively, while the other half may see increases in productivity. The lesser impact on emerging and developing countries will tend to lead to fewer benefits in terms of increased productivity.

The report highlighted how a country’s level of preparedness for AI will be relevant when it comes to maximizing the benefits and dealing with the risks of the technology’s negative effects. The report included an index to measure the state of preparation of countries, taking into account digital infrastructure, economic integration and innovation, levels of human capital and labor market policies, and regulation and ethics.

In a set of 30 countries evaluated in detail, Singapore, the United States, and Germany appear in the top positions, while middle-income countries appear alongside low-income countries at the bottom (Figure 2). Increasing each country’s level of AI preparedness should clearly be considered a policy priority.

[caption id="attachment_26762" align="aligncenter" width="540"] Figure 2: Cross-Country AI Preparedness Dimensions: Selected Countries. Source: IMF (2024).[/caption]

Originally published at Policy Center for the New South

Otaviano Canuto, based in Washington, D.C, is a former vice president and a former executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development.


Attitudes Towards Remote Working: Employer vs Employee Perspectives and Economic Implications

The landscape of the workplace has been irreversibly transformed by the rise of remote working, a shift accelerated by the COVID-19 pandemic. This transformation has generated diverse opinions from both employers and employees, shaping new economic dynamics. Understanding these perspectives is crucial for businesses and policymakers alike.

Employer Perspective

Employers initially regarded remote working as a temporary necessity during the pandemic but have since recognised its long-term benefits and challenges. A significant share of employers now views remote work positively, attributing improved efficiency to this model. Research indicates that a supportive attitude towards remote working can enhance organisational support mechanisms such as providing additional office equipment and training, which in turn boosts work efficiency from remote locations (MDPI).

However, embracing remote work also comes with managerial challenges. These include maintaining oversight and productivity without the traditional in-person interactions. Employers are now investing in digital tools and collaborative software to manage these challenges, with the collaborative software market projected to grow significantly, reaching nearly $18 billion by 2025 (Exploding Topics).

Employee Perspective

From the employee standpoint, remote work offers unprecedented flexibility, leading to enhanced job satisfaction and work-life balance. The ability to work from anywhere has been particularly beneficial, allowing individuals to save on commuting time and costs, thereby improving their overall quality of life (CIPD).

Employees also appreciate the autonomy and flexibility in managing their work schedules, which has been shown to increase productivity. Surveys suggest that many employees feel more productive when working remotely compared to in-office settings (Exploding Topics). Despite these benefits, remote work can also lead to challenges such as difficulty unplugging after work and a sense of isolation, which are significant concerns that employers need to address to maintain employee well-being and productivity (Exploding Topics).

Economic Implications

On the economic front, remote work has both micro and macroeconomic implications. At the micro level, businesses can reduce costs on real estate and utilities, while also tapping into a broader talent pool unrestricted by geographical boundaries. This flexibility can be particularly advantageous in addressing skill shortages in certain sectors (CIPD).

At the macro level, the widespread adoption of remote work can lead to significant shifts in urban planning and transportation needs, potentially reducing traffic congestion and pollution as fewer people commute daily. Furthermore, it could lead to economic redistribution as workers opt to live in less expensive areas, potentially revitalising rural economies (ZDNet).

However, these benefits also come with challenges. The shift to remote work could lead to a decline in demand for commercial real estate and impact businesses that rely on foot traffic in business districts. Thus, while remote work presents opportunities for cost savings and increased productivity, it also requires strategic adjustments from both businesses and urban planners (ZDNet).

Conclusion

Both employers and employees have found value in remote work, albeit with distinct perspectives and experiences. For employers, the challenge lies in managing remote teams effectively and harnessing the benefits of increased productivity. For employees, the key benefits include flexibility and a better work-life balance, though challenges like isolation need to be managed.

Economically, remote work could potentially lead to significant cost savings and efficiency gains but requires careful consideration of broader impacts on urban planning and the commercial real estate market. As the world continues to adapt to this model, the success of remote work will depend on continuous learning and adaptation to optimise both individual and collective benefits.


The Evolution of Online Search: The Role of Artificial Intelligence

The integration of artificial intelligence (AI) into online search engines is redefining the accessibility and efficiency of information retrieval, profoundly impacting how we interact with the digital world. With advancements from major tech companies and changing user behaviors, AI's influence is reshaping search engine dynamics, enhancing business operations, and altering the legal and financial landscapes.

Enhanced Search Functionality

Google's recent innovations, such as "Circle to Search" and AI-powered multisearch capabilities, exemplify AI's transformative impact on search functionalities. These features allow users to interact with their devices in more intuitive ways, such as using gestures to initiate searches directly from any screen or combining text and images to refine search queries (blog.google).

Ensuring Content Quality

The advent of AI in content creation has prompted search engines to prioritize high-quality, human-generated content. Google's March 2024 Core Update, for example, specifically targets and deindexes low-quality and AI-generated spam to improve the quality of information presented in search results, demonstrating a significant shift towards valuing authenticity and relevance in content (Search Engine Journal).

Expanding Beyond Google

The scope of search is expanding beyond traditional engines like Google, with platforms such as TikTok, YouTube, Pinterest, and Reddit increasingly being used as alternative search sources. This diversification necessitates a broader approach to search engine optimization (SEO) and content strategy, encouraging marketers to engage with a wider array of digital platforms to reach their audiences (Moz).

AI in Business Operations

In the business sector, Bloomberg has harnessed AI to enhance the functionality of its Terminal, offering AI-powered summaries of earnings calls that help analysts quickly gather and process complex financial data. This not only saves time but also provides deeper insights, allowing users to maintain a competitive edge in financial analysis (Yahoo Finance) (Institutional Investor).

AI's Impact on Legal and Financial Fields

In the legal domain, Bloomberg Law has integrated AI to streamline legal research and workflow, offering comprehensive, AI-powered tools that assist in legal operations. This integration signifies a broader trend of AI's penetration into specialized professional services, reshaping how professionals access information and manage their workflows (Bloomberg Law).

In finance, BloombergGPT represents a significant advancement, a powerful AI model designed specifically to handle complex financial data. This tool underscores the growing importance of AI in financial analytics, enabling more accurate and timely decision-making processes (Unite.AI).

Future Outlook

As AI continues to evolve, its integration into online search and other business operations is expected to deepen, bringing more sophisticated tools and functionalities that further enhance user experiences and professional efficiency. The ongoing development of AI technologies promises not only to enhance the capabilities of search engines but also to transform business operations across various industries, driving innovation and productivity.

In summary, AI's integration into online search is not just enhancing the efficiency and effectiveness of searches but also transforming business models and professional practices across industries. As we continue to harness this powerful technology, the landscape of online information retrieval and business operations will continue to evolve, offering unprecedented opportunities for growth and innovation.


Paolo Sironi, IBM: Regenerating Banking via Bots — AI Has Our Full Attention

Financial services specialists — like professionals in so many sectors — are embracing the radical technology, to great effect...

Generative AI has seized the world’s attention like no technology before it. Executives are either dazzled by bright futures or dismayed by dystopian scenarios, and boardroom discussions have become polarising.

The financial services sector is not immune to all this.

Banking executives are brainstorming the best ways to assess and prioritise the technology’s economic potential, estimate the access costs, and manage the attendant risks that come with it.

The real power of large language models (LLMs), which underpin generative AI, lies in speed and affordability. Foundational models enable multiple solutions to be derived from one base.

The most widespread application thus far is to shape compelling narratives and conversations. Without underestimating business and ethical imperatives to control bias or “hallucination” risks, generative AI can help to redefine a bank’s competitive edge in client relationships by taking communication to new levels of personalisation. This empowers financial institutions to capitalise on long-term investments in Cloud and AI tech, paving the way for customised and digitalised client interactions.

Smartphones allowed digital banking to mature as a primary engagement platform. A global survey of 12,000 consumers was conducted by IBM Institute for Business Value. Of the respondents, 62 percent were using a mobile app, and 12 using a bank website. While branches still have a crucial role to play in banking intermediation, their numbers have been shrinking since 2012.

In Italy, figures are down 38 percent; stands at 32 percent in Germany, 23 percent in Australia, and 10 percent in France and the US. This is primarily due to intense M&A activity — chivvied along by declining demand and revenue pressures from the low-interest rates over the past 10 years. Branch networks are growing in some advanced and emerging economies, along with economic wealth, the earning capacity of banks, and the provision of services to previously unbanked citizens. Service provision has risen by 53 percent in India, 19 percent in China, and eight percent in Indonesia.

In the short term, the recent hike in interest rates is boosting global banking profits. But given clients’ enthusiasm for the convenience and efficiency of digital banking, a return to branch network expansion is unlikely.

How have banks responded to this increasing digital adaptation, and the need to shift from branches to mobile contact points? Banks have focused on three strategies supporting customer service. Each phase corresponds to a different investment focus in their tech portfolio (see Figure 1).

[caption id="attachment_26773" align="aligncenter" width="1000"] Figure 1: Evolving with exponential tech. Three technology pillars to build better customer service. Source: IBM Institute for Business Value[/caption]

Clients, accustomed to managing their personal and business lives via mobile apps, are reshaping the landscape. Already, 16 percent of global consumers are comfortable with a branchless, fully digital proposition — and that figure is significantly higher in advanced and emerging economies. In Brazil, 29 percent of respondents report holding a primary account with a neobank — a firm offering applications, software, and other technologies — to streamline banking experiences.

But providing digital access doesn’t automatically translate to personalised, frictionless digital services. Apps can’t capture the same “soft” information about clients as human branch managers, but machine learning offers new avenues to determine client preferences and needs via their transactions.

Advantages notwithstanding, insights and new information alone have failed to drive a comprehensive shift in client intermediation. Mobile, being demand-driven, is effective for users who can self-direct — but most banking revenues originate from offers. Bank officers typically offer products to clients who rely on them to make informed financial decisions.

Without sufficient conversational touchpoints, many might pivot to digital banking before resolving important financial decisions. While 69 percent of consumers prefer to execute investments online, financial advisors are 29 percent more likely to trigger investment decisions than factors such as access to planning tools, mobile support, or timely news.

First-generation chatbots, powered by natural language processing (NLP), provided rudimentary conversational capabilities to assist clients — but rarely provided an adequate conversational experience. This restricted their capability to handle relationships in a confined, rule-based set of domains.

[caption id="attachment_26774" align="alignright" width="178"]<img class=" wp-image-26774" src="https://cfi.co/wp-content/uploads/2024/04/IBM-AI-2-jpg.webp" alt="Figure 2: Almost 8 in 10 institutions are tactically implementing generative AI for at least one use case. 8% take more systematic, enterprise-wide approach. Q: What is you institution's approach to implementing generative AI for each use case presented? Note: For a list of domains and use cases, please see page 44 of IBM 2024 Global Outlook for Banking and Financial Markets." width="178" height="423" /> Figure 2: Almost 8 in 10 institutions are tactically implementing generative AI for at least one use case. 8% take more systematic, enterprise-wide approach.
Q: What is you institution's approach to implementing generative AI for each use case presented? Note: For a list of domains and use cases, please see page 44 of IBM 2024 Global Outlook for Banking and Financial Markets.[/caption]

As generative AI matures, this barrier is dissolving. While chatbots answer questions, generative AI engages clients and employees by assisting them in task management — with potential impact on productivity and financial performance.
The 2024 Global Outlook for Banking and Financial Markets, published by IBM Institute for Business Value, investigated what’s really going on via a global survey of 600 banking executives worldwide (see Figure 2).

It found 86 percent of banking organisations are in production, or preparing to go live, with at least one generative AI use-case. Eight percent are taking a systematic approach, covering all business domains: client engagement, risk and compliance, information technology, and other support functions. On the reverse side, 14 percent of organisations have no immediate plans to work with generative AI.

No typical starting point or implementation pattern has emerged. The 78 percent of institutions using a tactical approach work on a small number of use-cases or domains — without significant preference. Yet, they reveal more traction in the risk and compliance space, as well as client engagement.

Will generative AI’s potential to transform businesses and boost productivity scratch the surface of these economic models? Or will it help to course-correct their financial performance? The industry average has proved disappointing since the Global Financial Crisis. This requires meticulous assessment.

Banks’ investments in tech are not confined to user interfaces; they also address the need to redesign architectures end-to-end. In 2022, tech outlay in the banking sector averaged seven percent of total operating expenses. Besides technology, total operating expenses include workforce and real estate. Correlating the impact of spending on technology to financial performance is not straightforward.

More than other industries, traditional banking business models strongly depend on macro-economic conditions — and regulation defines application. Most importantly, the total spend does not determine outcomes. It’s the use of technology that holds greater significance. An effective technology spend can increase the value of services that motivate a willingness to pay for superior experiences, protect economic value from cyberattacks, and embed ecosystem interactions into non-banking platforms.

Research commissioned by the ECON Committee of the European Parliament has revealed some banks with a lower IT spend outperformed higher-spending counterparts, emphasising the importance of efficient IT use. Cost-to-income dynamics indicate that many banks struggle to translate efficiency-orientated initiatives into structural gains. Similarly, investments in innovation did not achieve expected productivity outcomes.

While total operating expenses have been growing over the past 15 years, the percentage directed to technology changed less than other domains. Workforce costs increased by almost five percent of the total amount, whole technology and communication expenses by 0.6 percent.

To significantly impact financial performance, tech investment must concurrently address automation and augmentation to re-balance bankers’ contributions to the bottom line, and generate more business value per workforce unit. This cannot happen tactically, but requires investments in platforms and an enterprise-wide strategy grounded on clear AI governance.

That engenders trust — not an easy task as new risks emerge (intellectual property considerations across the AI value chain, for example) and best practices are still shaping risk management.

Generative AI can be configured as a risk-management tool while alleviating the burden of compliance management. But it also presents challenges for financial organisations as they navigate the balance between value, innovation, and risk on platforms that must be both open and trusted. A pragmatic approach is indispensable, guiding institutions through continuous needed to guide the application of this new technology. And this gets personal: every employee must be not only be a risk manager, but also an AI-risk manager.

While the precise impact on productivity is yet to be realised, fully exploiting the benefits is likely to require a human response. What is required is a collaborative effort from industries and regulators, and a wholesale reimagining of business models and workflows. i

For more information, visit: ibm.co/2024-banking-financial-markets-outlook

About the Author

[caption id="attachment_25777" align="aligncenter" width="900"] Author: Paolo Sironi[/caption]

Paolo Sironi is the global research leader in banking at IBM, the Institute for Business Value, and he is author of business literature. His latest Banks and Fintech on Platform Economies has been Amazon bestseller in banking books worldwide.

Financial services specialists — like professionals in so many sectors — are embracing the radical technology, to great effect...

Generative AI has seized the world’s attention like no technology before it. Executives are either dazzled by bright futures or dismayed by dystopian scenarios, and boardroom discussions have become polarising.

The financial services sector is not immune to all this.

Banking executives are brainstorming the best ways to assess and prioritise the technology’s economic potential, estimate the access costs, and manage the attendant risks that come with it.

The real power of large language models (LLMs), which underpin generative AI, lies in speed and affordability. Foundational models enable multiple solutions to be derived from one base.

The most widespread application thus far is to shape compelling narratives and conversations. Without underestimating business and ethical imperatives to control bias or “hallucination” risks, generative AI can help to redefine a bank’s competitive edge in client relationships by taking communication to new levels of personalisation. This empowers financial institutions to capitalise on long-term investments in Cloud and AI tech, paving the way for customised and digitalised client interactions.

Smartphones allowed digital banking to mature as a primary engagement platform. A global survey of 12,000 consumers was conducted by IBM Institute for Business Value. Of the respondents, 62 percent were using a mobile app, and 12 using a bank website. While branches still have a crucial role to play in banking intermediation, their numbers have been shrinking since 2012.

In Italy, figures are down 38 percent; stands at 32 percent in Germany, 23 percent in Australia, and 10 percent in France and the US. This is primarily due to intense M&A activity — chivvied along by declining demand and revenue pressures from the low-interest rates over the past 10 years. Branch networks are growing in some advanced and emerging economies, along with economic wealth, the earning capacity of banks, and the provision of services to previously unbanked citizens. Service provision has risen by 53 percent in India, 19 percent in China, and eight percent in Indonesia.

In the short term, the recent hike in interest rates is boosting global banking profits. But given clients’ enthusiasm for the convenience and efficiency of digital banking, a return to branch network expansion is unlikely.

How have banks responded to this increasing digital adaptation, and the need to shift from branches to mobile contact points? Banks have focused on three strategies supporting customer service. Each phase corresponds to a different investment focus in their tech portfolio (see Figure 1).

[caption id="attachment_26773" align="aligncenter" width="1000"] Figure 1: Evolving with exponential tech. Three technology pillars to build better customer service. Source: IBM Institute for Business Value[/caption]
Clients, accustomed to managing their personal and business lives via mobile apps, are reshaping the landscape. Already, 16 percent of global consumers are comfortable with a branchless, fully digital proposition — and that figure is significantly higher in advanced and emerging economies. In Brazil, 29 percent of respondents report holding a primary account with a neobank — a firm offering applications, software, and other technologies — to streamline banking experiences.

But providing digital access doesn’t automatically translate to personalised, frictionless digital services. Apps can’t capture the same “soft” information about clients as human branch managers, but machine learning offers new avenues to determine client preferences and needs via their transactions.

Advantages notwithstanding, insights and new information alone have failed to drive a comprehensive shift in client intermediation. Mobile, being demand-driven, is effective for users who can self-direct — but most banking revenues originate from offers. Bank officers typically offer products to clients who rely on them to make informed financial decisions.

Without sufficient conversational touchpoints, many might pivot to digital banking before resolving important financial decisions. While 69 percent of consumers prefer to execute investments online, financial advisors are 29 percent more likely to trigger investment decisions than factors such as access to planning tools, mobile support, or timely news.

First-generation chatbots, powered by natural language processing (NLP), provided rudimentary conversational capabilities to assist clients — but rarely provided an adequate conversational experience. This restricted their capability to handle relationships in a confined, rule-based set of domains.

[caption id="attachment_26774" align="alignright" width="178"] Figure 2: Almost 8 in 10 institutions are tactically implementing generative AI for at least one use case. 8% take more systematic, enterprise-wide approach.
Q: What is you institution's approach to implementing generative AI for each use case presented? Note: For a list of domains and use cases, please see page 44 of IBM 2024 Global Outlook for Banking and Financial Markets.[/caption]
As generative AI matures, this barrier is dissolving. While chatbots answer questions, generative AI engages clients and employees by assisting them in task management — with potential impact on productivity and financial performance.
The 2024 Global Outlook for Banking and Financial Markets, published by IBM Institute for Business Value, investigated what’s really going on via a global survey of 600 banking executives worldwide (see Figure 2).

It found 86 percent of banking organisations are in production, or preparing to go live, with at least one generative AI use-case. Eight percent are taking a systematic approach, covering all business domains: client engagement, risk and compliance, information technology, and other support functions. On the reverse side, 14 percent of organisations have no immediate plans to work with generative AI.

No typical starting point or implementation pattern has emerged. The 78 percent of institutions using a tactical approach work on a small number of use-cases or domains — without significant preference. Yet, they reveal more traction in the risk and compliance space, as well as client engagement.

Will generative AI’s potential to transform businesses and boost productivity scratch the surface of these economic models? Or will it help to course-correct their financial performance? The industry average has proved disappointing since the Global Financial Crisis. This requires meticulous assessment.

Banks’ investments in tech are not confined to user interfaces; they also address the need to redesign architectures end-to-end. In 2022, tech outlay in the banking sector averaged seven percent of total operating expenses. Besides technology, total operating expenses include workforce and real estate. Correlating the impact of spending on technology to financial performance is not straightforward.

More than other industries, traditional banking business models strongly depend on macro-economic conditions — and regulation defines application. Most importantly, the total spend does not determine outcomes. It’s the use of technology that holds greater significance. An effective technology spend can increase the value of services that motivate a willingness to pay for superior experiences, protect economic value from cyberattacks, and embed ecosystem interactions into non-banking platforms.

Research commissioned by the ECON Committee of the European Parliament has revealed some banks with a lower IT spend outperformed higher-spending counterparts, emphasising the importance of efficient IT use. Cost-to-income dynamics indicate that many banks struggle to translate efficiency-orientated initiatives into structural gains. Similarly, investments in innovation did not achieve expected productivity outcomes.

While total operating expenses have been growing over the past 15 years, the percentage directed to technology changed less than other domains. Workforce costs increased by almost five percent of the total amount, whole technology and communication expenses by 0.6 percent.

To significantly impact financial performance, tech investment must concurrently address automation and augmentation to re-balance bankers’ contributions to the bottom line, and generate more business value per workforce unit. This cannot happen tactically, but requires investments in platforms and an enterprise-wide strategy grounded on clear AI governance.

That engenders trust — not an easy task as new risks emerge (intellectual property considerations across the AI value chain, for example) and best practices are still shaping risk management.

Generative AI can be configured as a risk-management tool while alleviating the burden of compliance management. But it also presents challenges for financial organisations as they navigate the balance between value, innovation, and risk on platforms that must be both open and trusted. A pragmatic approach is indispensable, guiding institutions through continuous needed to guide the application of this new technology. And this gets personal: every employee must be not only be a risk manager, but also an AI-risk manager.

While the precise impact on productivity is yet to be realised, fully exploiting the benefits is likely to require a human response. What is required is a collaborative effort from industries and regulators, and a wholesale reimagining of business models and workflows. i

For more information, visit: ibm.co/2024-banking-financial-markets-outlook

About the Author

[caption id="attachment_25777" align="aligncenter" width="900"] Author: Paolo Sironi[/caption]
Paolo Sironi is the global research leader in banking at IBM, the Institute for Business Value, and he is author of business literature. His latest Banks and Fintech on Platform Economies has been Amazon bestseller in banking books worldwide.


Breaking Down Biden's 2025 Capital Gains Tax Proposal: What's Really in Store

In President Biden's proposal for the Fiscal Year 2025 Budget of the United States Government, one of the most talked-about components is the suggested increase in capital gains rates. The headline number of 44.6% has drawn significant attention and debate. If enacted, this would be the highest formal federal capital gains rate since its inception. However, as with any policy proposal, the reality behind the number is more complex than it appears (Tax Foundation) (PwC).

[caption id="attachment_26777" align="alignright" width="300"] President Joe Biden[/caption]

Understanding Capital Gains Capital gains refer to the profit made from the sale of assets such as stocks, real estate, or businesses. The federal capital gains tax rate varies based on income level, asset type, and holding period. Long-term capital gains, those on assets held for more than a year, are generally taxed at a lower rate than short-term gains. Currently, the top rate is 20% for long-term gains, but the proposed budget aims to change that (Welcome to Mondaq).

Biden's Proposal: A Closer Look President Biden's budget proposal for Fiscal Year 2025 suggests raising the top long-term capital gains rate to 39.6%. With the addition of the 3.8% Net Investment Income Tax (NIIT) designed to fund the Affordable Care Act, and the additional Medicare tax, the total capital gains rate could reach 44.6% (Moneywise). This increase targets high-income earners, specifically those with annual earnings over $1 million. However, these proposed changes contain many caveats and exclusions, affecting their practical application.

Potential Impact Raising the capital gains tax rate could have several effects on the economy and financial markets. Higher rates might encourage investors to hold onto assets longer to avoid triggering taxable events, reducing market liquidity and affecting businesses' ability to raise capital. On the other hand, it could lead to increased government revenue, allowing for more significant investments in public goods and social programs (PwC).

Criticisms and Concerns Critics argue that higher capital gains taxes could stifle investment and entrepreneurship. They also highlight that capital gains represent a form of double taxation since the underlying assets were likely subject to corporate taxes. Moreover, some suggest that this proposal could lead to capital flight, with investors seeking tax-friendly jurisdictions outside the United States (Tax Foundation).

What's Next? President Biden's proposal is just that—a proposal. For it to become law, it must navigate the complex legislative process, including approval by both houses of Congress. Given the current political climate and the narrow margins in the House and Senate, significant changes are likely before any final version of the budget is passed (Moneywise).

As the discussion unfolds, it's crucial for investors, business owners, and the public to stay informed and understand how these changes might affect them. This includes considering investment strategies, exploring potential tax planning options, and staying updated on legislative developments.

Conclusion President Biden's proposal to raise capital gains rates has ignited debate and speculation. While the headline rate of 44.6% is eye-catching, the full impact of the proposal depends on a range of factors, including income thresholds, exemptions, and legislative outcomes. As always, when it comes to tax policy, the devil is in the details. Investors and businesses should take a measured approach, seeking professional advice to navigate the potential changes ahead (Welcome to Mondaq).


Mitsuko Tottori: Flying High at Japan Airlines

Mitsuko Tottori, a name synonymous with resilience, dedication, and a groundbreaking ascent in the aviation industry, has become the first female CEO of Japan Airlines (JAL). Her appointment in April 2024 marks a pivotal moment for JAL and Japanese business culture, shattering glass ceilings and paving the way for a more inclusive future.

[caption id="attachment_26782" align="aligncenter" width="853"] President and Chief Executive Officer of Japan Airlines: Mitsuko Tottori[/caption]

From Cabin Crew to Leadership Chair

Tottori's remarkable journey began in 1985 as a flight attendant. This seemingly ordinary beginning was marked by a defining experience – JAL's worst accident just four months into her role. This tragedy instilled in her an unwavering focus on safety, a principle that would guide her future leadership decisions.

Over two decades, Tottori gained invaluable firsthand experience in customer service and the intricate workings of airline operations. Her dedication propelled her through the ranks, culminating in her promotion to Director of Cabin Service in 2015.

A Unique Perspective

Tottori's leadership style stood out from that of the traditional JAL executive. Unlike her predecessors with backgrounds in finance or operations, her strength stemmed from a deep understanding of the human element.  She championed departments like cabin crew and customer service, fostering a company culture that looked first to passenger experience and employee well-being.

Her expertise in cabin safety further added to her reputation. As Director of Cabin Safety (2013-2015), her determined focus on safe operations became a cornerstone of her leadership philosophy.

Leading Through Crisis: A Compassionate Approach

Tottori's strong leadership qualities were further tested during the unprecedented challenges of the COVID-19 pandemic.  As Senior Vice President of the Cabin Attendants Division in 2020, she spearheaded initiatives to support JAL's cabin crew during a period of immense uncertainty.  Her ability to motivate and guide her team through crisis, while focusing on safety and employee well-being, added to her reputation as a capable and compassionate leader.

Steering JAL Towards a New Era

Tottori's appointment as CEO recognises her exceptional abilities and unwavering dedication to JAL.  She inherits leadership at a crucial juncture, with the airline industry still navigating the post-pandemic landscape. However, her diverse experience, from cabin crew to senior management, positions her exceptionally well to understand the multifaceted challenges JAL faces.

Looking ahead, Tottori's focus likely encompasses several key areas:

Ensuring JAL's financial health post-pandemic.

Seeking out innovation and technological advancements to enhance the passenger experience and optimise operations.

Maintaining a commitment to a positive and supportive work environment for JAL's employees.

A Symbol of Progress and Diversity

Tottori's historic appointment aligns with the Japanese government's ambitious target of having women hold a third of leadership positions at major businesses by 2030.  Her success story underscores the benefits of shattering glass ceilings – not just for individuals, but for companies as well. Research consistently shows that diverse leadership teams foster innovation, improve decision-making, and strengthen a company's overall performance.

Beyond the Title: An Inspiration for All

Mitsuko Tottori is more than just the CEO of Japan Airlines. Her story is a testament to resilience, dedication, and a commitment to excellence.  Her journey from cabin crew to the pinnacle of leadership at JAL is an inspiration for anyone who dares to dream big and strives to make a positive impact. With her extensive experience, unwavering focus on safety, and commitment to JAL's employees and customers, Mitsuko Tottori is poised to lead the airline into a new era of sky-high success.


Privacy is a Right, Not a Luxury – and it’s Worthy of Protection

Data-harvesting, monitoring, ad-targeting and even industrial espionage are threats for modern Internet users – and one company has a practical solution.

Tech advances of the past 20 years have forever changed the way people communicate, work and live. The number of people using smart phones this year is expected to reach seven billion.

Mobile devices, emails, messaging services, social networks and video calls are how we stay in touch – with those far from us, or perhaps sitting just across the table.

The internet and AI have “brought the world into our homes” as never before. From armchair travel or chatting with a friend in another country to shopping, watching a movie or learning, all this can take place in the comfort of your sitting room.

Since the pandemic and the emergence of flexible- and remote working, even being employed no longer requires a daily commute. The freedom of information is great, and seductive. We don’t even question whether the services of Google, Yahoo, Meta or Amazon come at a price.

But they do.

As the old adage has it, there is no such thing as a free lunch – and it’s a harsh economic reality. Everything comes with a price tag. In this case, it’s our personal privacy and security. It’s no secret that user-data is collected, analysed, and ultimately monetised by corporations, who own 80 to 95 percent of the market.

We would really like to be reassured that it’s possible to still be a “private individual” – respectful of the rights of others, but away from the public eye and political scrutiny – able to think, act, speak, shop, or learn without our actions being monitored and analysed. But each time we go online, somebody, somewhere, is watching.

And that matters, even if we have nothing to hide. It’s a matter of principle. Academics, economists and intellectuals increasingly share the view that networked computer databases are a threat to personal privacy. Billions of people have little or no knowledge of how their information is being harvested, collected, stored – and used.

Cyprus-based Aloha Browser is one company that feels strongly about these issues. It is a mobile and desktop private web browser that allows users to maintain online privacy, and have full control of their personal data.

Aloha does not use, collect, or monetise user data. Instead of selling data to advertisers, the firm generates revenue via premium and VPN services subscriptions. The core philosophy is that digital privacy is a right, not a privilege, and internet users must have access to the net and maintain total control over their personal data and privacy.

Aloha offers free and paid-for options for a range of services. It gives users that freedom – and has found alternative ways to remain profitable and continue to grow without stooping to the data-mining and individual tracking common to many IT companies.

It achieves the highest levels of privacy by mixing all finger-printing data in a way that a single user can’t be distinguished from the masses. If millions of images are piled on top of each other, it will be impossible to identify a single one. In the same way, Aloha users will be invisible among the millions of other users. It will be impossible to establish who is performing which specific action.

First launched in the EU in 2015, Aloha has seen steady user growth in Europe, North America and Asia. Consumers globally are increasingly aware of their privacy options, and more companies are hitting the headlines for breaches of privacy.

The EU enacted the Digital Markets Act, or DMA, this year. This increased user protection and loosened the grip corporate giants like Google and Apple have had on mobile device browsers, making it easier for users to find alternate browsers. Since the introduction of this Act, Aloha has seen average user rates rise by 250 percent in Europe – in the first month alone.

Aloha’s priority remains that of giving users the right to be private, which is crucial for all internet users, now and in coming years, particularly with the adoption and integration of AI into so many aspects of our lives.

The overall approach is to provide simplicity and accessibility while meeting consumer needs and expectations. Modern users have choices for browsers, and often have more than one installed on their device. We dream of a better, more secure future for our customers – but we are realists. We believe Aloha can become the go-to option for people who realise that they need privacy for a particular transaction, search, or interaction.

[caption id="attachment_26785" align="alignright" width="278"] Author: Andrew Frost Moroz, Founder of Aloha Browser[/caption]

Another goal is to make the complex matter of privacy as simple as possible. It works right out of the box, without the need for advanced set-up or fiddling with extensions or complicated switches. Even non-tech-savvy users can benefit from it. Building complex products is hard, but building simple ones that can do the same thing is infinitely harder. This is where Aloha comes into its own.

Consumers and users spend an average of three hours and 15 minutes each day on mobile devices. It’s crucial to have some degree of control over who is monitoring that activity, and what that information is being used for. A browser that can limit your exposure is quite simply part of that right to privacy.

Remember the 1998 film with Will Smith and Gene Hackman, Enemy of the State? Many wonder if it was based on a true story. It wasn’t – but the tech that looked so far-fetched then is now becoming reality.

Despite the overall dominance of the sector by Google and Apple, Aloha still has a strong share of followers, with more than 250 million users worldwide, 10 million of them each month. These numbers have been growing more since the EU’s recent rulings made such choices easier to attain.

This growth shows that there is a large, but still not fully-served, population that wants control of all their personal data.

Owing to technology advances, access to the Internet has never been easier. The flip side is that the higher the number of access points, the higher the number of opportunities for a cyberattack. More Internet users are becoming concerned about their privacy, and the fact that a lack of it can be a real threat should personal data end up in the wrong hands.

At Aloha, we are not only protecting our users from the annoyance of cookies, cross-device tracking, browser fingerprinting, or bombardment by ads while visiting certain websites. We are looking further ahead.

The AI era brings more urgency to the issues of privacy and personal data. It has already taken over many aspects of home and work life, and one should be able to benefit from it without compromising privacy and avoiding phishing, spyware, and identity fraud.

Aloha is pioneering AI privacy to protect users from today’s threats – as well as emerging ones. We’re working hard to ensure privacy rights, and looking ahead to stay abreast of coming challenges.