Director Of Finance SPRING 2017 | Page 7

NEWS | The Big Stories BESToftheREST What the top columnists are saying about Brexit Britain MAY THE MANAGER IBM Watson replaces 34 staff at Japanese insurance firm H ardly a day goes by without some story or another about robots taking over the world. When they were doing the dirty or dangerous work – digging for coal, checking on high-altitude electrical connections – the robots were welcomed by most. Now, though, they are taking on jobs which are neither dirty nor dangerous and which, it can be argued, are an increasing threat to how our world works today. One recent example comes out of Japan where an insurance company is replacing 34 of its staff with an artificial intelligence system. The computer – at Fukoku Mutual Life Insurance – will calculate how much policyholders should be paid out. Until now, it was a job done by people but will soon be done by a computer based on IBM’s Watson Explorer, a technology which learns to think and act like a human. According to reports in Japanese newspapers, the computer will be able to understand medical certificates and the length of hospital stays. It will also be able to understand a patient’s medical history and surgical procedures and then work out how much people should be paid. The company reckons this switch will help them save about £1 million a year. The system itself will cost £1.4 million with annual £100,000 maintenance costs. dofonline.co.uk It is true that Japan, unlike many countries, has to deal with a shrinking and ageing population but that won’t stop other companies adopting the technology if, as Fukoku Mutual expects, the investment in robots starts to pay off in two years. But the march of AI in Japan has not been without its problems. At the end of 2016 attempts to develop a robot able to pass the entrance exam for Tokyo University were abandoned. “AI is not good at answering the type of questions that require an ability to grasp meanings across a broad spectrum,” said Professor Noriko Arai from the National Institute of Informatics. It is not only the financial service sector that will be altered by AI. According to Deloitte, all sectors of the UK economy will be affected by automation in the next 20 years, with 74% of jobs in transportation and storage, 59% of jobs in wholesale and retail, and 56% of jobs in manufacturing facing a high chance of being automated. The research concluded that around 16% of the UK’s public sector jobs could be automated by 2030. Q How artificial intelligence is set to transform the accounting industry. See pages 42-43 Theresa May displays strong management skills. Since taking office, she has clearly focused on processes and procedures to execute the short-term project with which she was entrusted: Brexit. She appears to be a great pragmatic and meticulous doer and planner. But you never hear her described as a visionary, as empathetic or inspiring. She has been criticised for her inability to craft a long-term vision for the country after Brexit. This is deeply troubling. She is leading the country through what has been described as one of the biggest changes since World War II but she lacks many of the skills of a transformational leader… Brexit is a complex task and to succeed it needs a complex leader. Thankfully these skills can be learned; hopefully May will learn them. Zahira Jaser, The Conversation A GREAT OPPORTUNITY The UK government needs to recognise that many other European financial centres see Brexit as a great opportunity. The UK should acknowledge that the City has no special right to dominate European financial services business, and recognise that Europe has a legitimate interest in ensuring that the major financial services centre for Europe (and the euro) is not “offshore”, as London will shortly become. The UK has chosen to leave the EU, and should be open about the fact that doing so will have consequences. Rob Moulton, City AM BRITAIN REBORN British democracy is reborn and the yoke of Brussels will soon be gone. Reaching this stage has been beset by pitfalls, entrenched opposition and dirty tricks to keep the United Kingdom in the European Union, but at last the festal day arrives and it is worth considering how we came to be here. Jacob Rees-Mogg, The Telegraph BIRTH PANGS If Britain suffers financial trauma in the coming years, Brexiteers will claim it is the birth pangs of a wondrous new era, to be suffered stoically. If the freedom dividend still doesn’t arrive, it will be because severance is incomplete. The prime minister will be accused of obstructing prosperity by compromising too much with Brussels; foreigners will be charged with sabotage. The problem will always be too little Brexit, never too much. Rafael Behr, The Guardian DIRECTOR OF FINANCE 7