Report: AI and Blockchain Technologies to Reshape Industries and Create New Markets
Summary:
Artificial intelligence (AI) and blockchain technologies are set to reshape industries and create new markets, according to a report by Moody's Investors Service. These transformative technologies will shrink established sectors while driving the emergence of new ones. AI will boost productivity and economic growth, while blockchain will foster financial inclusion. However, these benefits may take time to materialize. The report also highlights the need to address financial, regulatory, and cybersecurity risks to maximize the potential of AI and blockchain.
AI and blockchain technologies have reached a significant turning point, according to a report from Moody's Investors Service. These technologies are expected to disrupt established industries while creating new ones. The impact of AI and distributed ledger technologies (DLTs), such as blockchain, will go beyond corporate balance sheets and reshape entire sectors. While some industries may shrink or disappear, new markets will emerge. The report suggests that AI could drive the growth of new sectors like content generation, mobility, education, and healthcare. DLT has already led to the emergence of cryptocurrencies and decentralized finance, although their track record has been uneven. AI is also expected to boost economic growth by increasing productivity, while DLT can foster financial inclusion and modernize payment systems. However, these benefits are not likely to materialize before the next decade. In terms of global financial markets, AI and DLT are expected to improve process efficiency and create new products, thereby enhancing credit profiles for financial firms. However, proper attention must be given to financial, regulatory, and cybersecurity risks. The report emphasizes that the transformation brought by these technologies will bring both opportunities and risks. It states that the interaction of risk and opportunity will impact debt issuer credit profiles through various channels. Measures of credit risk, including business strategy and implementation, financial performance, governance and risk management, and industry and economy-level changes will be influenced by AI and DLT. The overall economic and financial effects of technological changes are expected to be positive, but the distribution of costs and benefits among people, companies, and countries may vary significantly.
Published At
9/7/2023 4:15:00 PM
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