Jochen Werne, is an international Manager, public speaker & NGO-Founder with a track record in business transformation. He also serves as a subject matter expert in public diplomacy & is dedicated to the development of international diplomatic & intercultural relations. He’s a relationship builder & influencer with a large network in politics, technology, and business who can foster change within organization’s leadership team
In the current position as C-Suite Executive Committee member of PROSEGUR Cash Services Germany he’s responsible for the development and implementation of the strategy for the areas Business Development, Innovation, II&S (Innovative Integrated Solutions), Business Process Outsourcing, New Products and International Sales.
Prior to this he has been Head of several Private and Corporate Banking divisions such as business development, marketing, product management, treasury & payment services at Bankhaus August Lenz & Co. AG. He also held CMO / COO / CDO related positions & headed sales departments. He served as CRM expert at Accenture, after working in global investment banking for Bankers Trust Alex Brown International and Deutsche Bank AG. In addition, he was a navigator & trainer in the German Navy, studied economics at the University of Passau, the Goethe University Frankfurt a. M., the Helsinki School of Economics and most recently at Oxford University.
He’s honorary Ambassador & founded several NGO’s dedicated to the development of international diplomatic and intercultural relations. He’s quoted by DIE ZEIT, Wirtschaftswoche, Süddeutsche Zeitung et al. Germany’s largest magazine Focus recognised his achievements recently in its section “The influencers”
He has been awarded for his engagement in supporting international understanding with the “Admiral of the Fleet The Lord Boyce Prize 2019” and the “Ancla d’Oro” of the Asociación para la Investigación y Difusión de la Historia Naval de Cuba.
“For two-thirds of German executives, their future competitive advantage depends largely on the best possible use of AI”
Düsseldorf, 17 September 2024 – The latest research report, ‘Experian | Forrester Research 2024 – Strategies for Growth’, examines the perspectives of decision-makers in four key areas: strategic priorities, data and analytics, technology and risk. Conducted by Forrester Consulting, the study surveyed 1,320 C-level and director-level executives in the financial services and telecommunications industries in ten countries in the EMEA and APAC regions. 147 participants were from Germany. The report clearly shows how executives are particularly using generative AI (GenAI) to consolidate data sets and thus improve their decision-making models. At the same time, customer experience is coming to the fore in order to be optimally prepared for a future characterised by difficult economic conditions, technological disruption and changing customer expectations.
The race to optimise the use of GenAI is in full swing.
The executives surveyed on behalf of Experian identified technological changes as one of the most important external factors that will influence their business in the next two years, and emphasised the race for AI supremacy to improve business efficiency and reduce costs. Accordingly, 68 per cent of all respondents believe that a competitive advantage in the future will be achieved by those companies that make best use of AI. In Germany, the majority (84 per cent) of the technology managers surveyed by Forrester for Experian are already exploring GenAI use cases with the aim of implementing them within the next year, putting them well ahead of the EMEA/APAC average (73 per cent).
62 per cent of German executives believe that GenAI will significantly improve risk assessment. The analysis of alternative data sources using generative AI is considered the most important use case by respondents in the EMEA/APAC region (62 per cent). German executives also rank it among the top use cases – but only after the use case of generating synthetic data to improve the accuracy of forecasting models, which is just ahead at 65 per cent. German companies are focusing their efforts on GenAI’s ability to extract valuable insights from non-traditional data sets, as well as its ability to create better decision models in the future and to obtain a more comprehensive picture of customers.
Technological disruption as a catalyst for better customer experiences
Access to a centralised, cloud-based platform for data, analytics, and software was identified by respondents as a key factor in improving their risk strategies. Almost half (48 per cent) of German respondents expect to experience higher credit defaults due to missed repayments over the next 12 months. At the same time, 54 per cent of the Germans surveyed by Forrester said that their companies had tightened their lending criteria over the past year. Many German risk managers (41 per cent) also stated that their top risk priority was to improve their ability to identify financially vulnerable customers. Today’s ability to gain a more holistic view of borrowers has improved significantly through better linking of data sources, model development tools, deployment and decision software. This also leads to an acceleration of the data-to-insight-to-action process by using AI. Ultimately, this leads to better customer relationships and fairer lending practices.
Consolidating data sets into a single cloud-based platform is key to improving analytical capabilities.
Data and analytics decision-makers prioritise the relocation of data silos to a single platform that combines data sets and analytical methods, as this better supports AI/ML capabilities and enables them to put models into operation in weeks rather than months. Currently, more than half (55 per cent) of respondents in the EMEA/APAC region believe that the development and deployment of AI/ML models takes too long. In Germany, this applies to 41 per cent. 54 per cent of Germans surveyed also said that they are currently updating their models more frequently than ever to adapt to changes in consumer credit behaviour. Alternative data and advanced analytics are crucial to helping companies make more accurate credit decisions, especially as consumer behaviour changes and external economic factors continue to influence them. However, the lack of alternative data sources in this context was cited by all respondents as a significant challenge that limits the success of both analytics programmes and model development. In a cloud platform, the advanced capabilities of AI can be used to efficiently process and analyse alternative or complex unstructured data sets and to gain valuable insights that were previously inaccessible. It is precisely in this context that the implementation of these new technologies should improve the accuracy of predictive models and ultimately enable the creation of more comprehensive analytics and credit risk profiles.
‘This year’s study particularly highlights the importance of two critical competitive factors: firstly, to be at the forefront of the race for AI superiority in order to gain a competitive advantage in one’s own sector. In this AI race, Germany stands out in particular: with 84 per cent of the German companies surveyed, an overwhelming majority is already exploring their options for using AI tools with the aim of implementing them in the next twelve months,’ emphasises Jochen Werne, CEO of Experian DACH. ’Secondly, we see a strong investment focus in the area of analytics tools and data infrastructures. Many companies are still struggling with the high time and effort involved in developing and deploying suitable models. Here, the survey results suggest that companies are increasingly using cloud-based services to better integrate data, analytics and software solutions.‘
’It is encouraging to see that the majority of the executives Forrester surveyed for us are optimistic about the next year and are planning major investments in technology. At the same time, we still face major macroeconomic challenges, with the financial burden on customers being highlighted as a significant concern. AI and ML tools offer an important opportunity to improve the accuracy of credit scoring for new and existing customers, thus protecting vulnerable customers by proactively addressing their needs,’ says Malin Holmberg, CEO EMEA & APAC at Experian.
About the study The ‘Experian | Forrester Research 2024 – Strategies for Growth’ is based on a survey of 1,320 executives in the financial services and telecommunications industries in ten countries, including Australia, Denmark, Germany, India, Italy, New Zealand, Norway, South Africa, Spain and the Netherlands. The research was conducted by Forrester Consulting in August 2020 to understand the collective and individual priorities and challenges at the most senior levels of decision-makers.
About Experian Experian is a global information and technology company that opens up new opportunities for people and businesses worldwide. With our unique combination of data, analytics and software, we have established ourselves as one of the leading service providers for risk, fraud and identity management in the DACH region. Experian enables individuals to access financial services such as loans, insurance, mobile phone contracts and online shopping. We help companies of all sizes and in all industries to make smarter decisions, issue credit more responsibly and protect themselves and their customers from identity fraud and crime. We invest in our talented employees and in new, advanced technologies to harness the power of data and drive innovation. We employ 22,500 people in 32 countries and are a FTSE 100 company listed on the London Stock Exchange (EXPN). Our head office is in Dublin, Ireland. Further information can be found at www.experian.de, www.experian.at, www.experian.ch.
Press contacts: Experian DACH Young-In Sun (Senior Team Lead PR & Communications) + 49 211 5066 5126 young-in.sun@experian.com AxiCom GmbH Nikolaus Schreck Agency contact + 49 176 15800 908 nikolaus.schreck@axicom.com
Please find original article written in German and the original source by clicking on this LINK. Translation into English made with DeepL.com. Photo Sources: ChatGPT, CloudComputingInsider, JochenWerne
Imagine a world in which companies can make more accurate predictions and work more efficiently by using cloud-based artificial intelligence. Despite this promising prospect, many companies are hesitant to take this step.
But why is the cloud crucial for the use of scalable AI applications? Many financial service providers and telecommunications companies are looking for ways to improve the accuracy of their credit risk and fraud models by using AI, for example. The cloud plays an important role here. The efficiency gains offered by AI are based on the fast and secure linking of data from diverse sources. Cloud technology makes it easier to connect data streams and enables different internal teams to work securely with information from different systems. The cloud can also provide the computing power needed to efficiently process and manage the large amounts of data required for AI and machine learning (ML). It offers the flexibility and scalability needed to develop, deploy and operate the software capabilities that ultimately enable the integration of AI into the loan decision process.
Harness the power of AI with the cloud
According to a survey conducted in autumn 2023 by Experian together with Forrester, which polled almost 900 international executives from the financial services and telecommunications sectors, 79 per cent of decision-makers from EMEA and APAC region are prioritising investment in software-as-a-service (SaaS) and cloud technology – with the same proportion of decision-makers surveyed in Germany prioritising the cloud (79%).
This is hardly surprising given the benefits of the cloud, such as improved security, faster processing speed, lower maintenance costs and elastic flexibility. While these benefits are widely recognised, there are still some challenges to adopting the cloud in the areas of AI and credit risk management. The resulting hurdles are causing some companies to hesitate to benefit from cloud deployment in this area of business as well – but these concerns can be overcome on closer inspection.
Those who already use the cloud
Our research shows that cloud adoption is already well established internationally: the executives surveyed report that 71 per cent use external cloud providers for their credit risk software (in Germany: 72 per cent), 69 per cent use them for identity and fraud risk management (in Germany: 65 per cent) and 70 per cent use the cloud for analytics platforms (in Germany: 66 per cent). The study highlights that, although there are differences, most countries deviate only slightly from the average. According to our research, India has the highest rate of adoption of cloud technology, and Italy the lowest. Both countries are more than ten per cent above or below the average.
Analytics processes – without the cloud
The trend is clear: the transition to the cloud seems inevitable. Nevertheless, in most of the countries surveyed, around a quarter of companies have not yet taken the plunge into the cloud in this area of business. What are the reasons for this? Naturally, the adoption of the cloud varies depending on the segment, size and maturity of the company. The traditional view is that fintechs, for example, are far better able to use cloud-based services more broadly and quickly, while larger banks must first overcome the challenges of migrating from legacy systems and decoupling complex infrastructures. In this context, it is therefore very interesting to note that the main reasons cited by the decision-makers surveyed in our study for why their companies have not (yet) adopted the cloud are relatively evenly distributed across the entire spectrum of company sizes. We took a closer look at the five hurdles identified by decision-makers in the study.
1. Regulatory concerns
Many companies see security as a limiting factor when it comes to using the cloud for credit risk assessments: 47 per cent (see figure) of the international executives we surveyed believe that cloud-based services are not secure enough to meet all regulatory requirements. However, given the widespread use of the cloud in many business areas, this view apparently reflects a subjective attitude or can be traced back to a very specific business risk in the companies concerned.
However, cloud technology is already an integral part of risk management in corporate IT, similar to other technologies. And in addition to general data protection regulations such as the GDPR, there are therefore well-established regulatory guidelines for the use of the cloud for risk management, particularly in the financial services sector, including the EBA guidelines on outsourcing agreements. Understanding these guidelines is therefore an important step in addressing potential concerns about compliance with regulatory requirements. Reputable cloud services today are designed to meet regulatory requirements. This includes third-party validations and continuous updates to ensure compliance with these regulations. This reduces the effort required to continuously maintain regulatory compliance, as cloud providers adapt their services as needed.
Cloud providers are increasingly expanding their services to offer local facilities and to address concerns about the storage and transmission of sensitive data across territorial borders. For example, Amazon Web Services (AWS) has announced the introduction of a European sovereign cloud. This independent cloud infrastructure is located and operated within the EU, thus solving the data residency issue. Another regulatory obstacle that has recently come under greater scrutiny concerns on-site audits and inspections. However, some cloud providers have also recognised that such audits are unavoidable in some jurisdictions and now offer eligible customers the option of conducting on-site inspections of their facilities through special audit programmes.
2. Level of control
Another reason, also mentioned by 47 per cent of the decision-makers surveyed, is concerns about the level of control when using cloud-based services. However, this concern can also be alleviated by understanding the shared responsibility model in the cloud. The key to this, however, is an informed decision about which cloud services to use. In the shared responsibility model of the cloud, control and responsibility are combined.
For example, companies seeking comprehensive control can opt for an Infrastructure-as-a-Service (IaaS) model that allows them to control both the use of computing resources and the operating system itself. However, this also requires that companies take full responsibility for managing these resources and the software running on them. By contrast, the choice of a software-as-a-service (SaaS) model reduces control over the computing resources used, but also transfers operational responsibility for them to the cloud provider. Companies must therefore take a close look at the shared responsibility model and understand the respective conditions in order to carry out a suitable cost-benefit analysis and thus select a service model that best suits their needs.
3. Internal infrastructure policy
Obstacle number three for 44 percent of the executives surveyed is an organisational policy that requires all software to be operated on the internal infrastructure. Although there may be other reasons for this decision that we cannot go into here, another reason probably plays a role here: some companies may not fully understand the advantages and far-reaching effects that the introduction of cloud-based services could have for their business. In addition to cost-effective scalability and the ability to scale as needed, the cloud can help companies break down data silos and improve the accuracy of their decision-making. As digital customer experience becomes an increasingly critical competitive advantage, companies that delay the move to the cloud in the credit risk environment risk falling behind in the long term. Already today, competitors who are consistently taking advantage of the cloud and AI are able to significantly improve their customer experience.
4. Concerns about the transition from on-premises to cloud
The fourth hurdle, cited by 42 per cent of the decision-makers surveyed, concerns concerns about the approach and timeframe for the transition from on-premises services to cloud-based applications. And of course, changes of this magnitude don’t happen overnight, but require careful planning and a step-by-step implementation.
However, the transition to the cloud has recently become much easier – especially when companies work with experienced partners. However, the long-term benefits that companies gain from the cloud make the transition more a matter of ‘when’ rather than ‘if’. If companies are aware of this, they can usually mobilise the necessary resources for such a change.
5. Security concerns
The fifth reason cited by 40 per cent of the executives surveyed as delaying the adoption of the cloud in their companies relates to security. They believe that cloud-based services are not yet secure enough to fully meet their companies’ internal security policies. This view may have been justified in the past, but it is outdated: the physical and digital security offered by cloud providers today is on a completely different level. Organisations can now access the latest security features from their cloud providers faster and more cost-effectively than ever before.
There are no longer any arguments against the cloud
Many companies that deal with credit risks have made the switch from private to public clouds because of the advanced and often even industry-specific security features that cloud providers offer them today. They rely on the highest standards of data encryption with multiple layers of protection. They also have a choice when using external cloud providers for their credit risk management: they can either manage their security keys themselves or leave this to a specialised third-party provider if they wish. Many of the concerns that decision-makers still have about using the cloud in this sensitive area of business can be significantly mitigated – especially in view of the great benefits of using the cloud. The reason is simple: cloud providers are judged by their customers precisely on the level of data protection and data security that they offer as standard. This means that companies in data-sensitive business areas can also engage with the cloud with confidence.
* The author Jochen Werne is CEO of Experian DACH. He was named one of the 50 most influential Germans in the Tyto PR Ranking 2020. A member of Chatham House and a former navigator in the German Navy, he is a passionate advocate of international diplomacy and has founded several NGOs. His efforts have been recognised by top international publications and earned him awards for promoting global understanding and environmental awareness.
It was an absolute pleasure to be interviewed by Felicia Shakiba for her podcast. Felicia’s exceptional friendliness, profound competence, and visionary approach made the entire experience both enriching and enjoyable. Her illustrious career, spanning nearly two decades and impacting over 130,000 employees, speaks volumes about her dedication and expertise in people strategy. As the Founder and Podcast Host of CPO PLAYBOOK Consultancy and a respected figure on the Advisory Board for Y-Combinator company Extern, Felicia’s insights are both enlightening and inspiring.
Felicia’s ability to explore complex ideas and empower organizations to become sustainable, balanced, and high-performing powerhouses is truly remarkable. Her background, which includes leadership roles in multinational giants like WPP and a solid educational foundation from Stanford Graduate School of Business, underpins her deep understanding of organizational dynamics. Her quote, “I love exploring ideas, empowering organizations to become sustainable, balanced, high-performing powerhouses,” perfectly encapsulates her passion and vision.
I am honored to share my insights on leading transformation and cultural integration and I hope our discussion offers valuable lessons for those navigating similar challenges.
Interview Highlights summarised by the podcast host
Today, we’re joined by Jochen Werne, CEO of Experian DACH, who shares his insights on leading transformation and cultural integration following Experian’s recent acquisition.
Jochen Werne’s Background and Influence of Navy Experience
Jochen Werne’s journey began in the Navy at 19. Coming from a small village in southern Germany, he ventured into the world, embracing the Navy’s promise: “Join the Navy, see the world.” This disciplined, structured environment taught him invaluable lessons. As a navigator, he learned to plan and adapt, often without relying on instruments. These experiences ingrained a sense of discipline, precision, and adaptability—skills that proved essential in his business career.
Navigating the seas on a sail training ship, Jochen faced the formidable forces of nature, fostering a deep respect for teamwork and resilience. These formative years shaped his leadership style, emphasizing perseverance, precision, and the ability to thrive in challenging environments.
Overcoming Challenges and Building Trust
Jochen Werne joined Experian in August 2023, amidst the ongoing integration process triggered by Experian’s acquisition of several companies from Arvato Bertelsmann in March 2020. This integration involved approximately 300 employees across multiple companies. However, the timing coincided with the onset of the COVID-19 pandemic, presenting unique challenges.
The pandemic necessitated remote integration, a daunting task without face-to-face interactions. Despite these obstacles, Experian aimed to establish a substantial footprint in the DACH region. The goal was to replicate the success of Experian’s well-known services in the United States and other regions, bringing similar capabilities to Germany.
Amidst all these rapid changes, Werne’s immediate focus was on creating success together with his new team. Trust, as he emphasizes, is built through actions, not just words. His approach involved clear communication and delivering on promises. This fostered trust and confidence among the team.
The integration process required a shift in mindset, particularly during the pandemic when physical presence was limited. Jochen’s leadership emphasized creating a supportive environment where employees felt valued and motivated. By setting clear goals and achieving tangible results, he instilled a sense of trust and commitment.
Major Changes and Cultural Integration
The integration involved several key changes:
1. Awareness and Communication: Creating awareness of the new organizational culture and continuously communicating the changes were crucial. Jochen emphasized the importance of understanding the local culture and adapting the global strategy to fit the local context.
2. Mindset Shift: A significant challenge was shifting the mindset of employees. Jochen highlighted the need to change how the market was approached and how Experian was perceived. Building brand awareness and demonstrating the advantages of being part of a global group was essential.
3. Security and IT Infrastructure: Integrating IT systems and ensuring data security were vital. While this required additional effort, Jochen stressed the importance of convincing employees about the benefits of these changes for the overall security and efficiency of the organization.
Creating a Unified Vision
Jochen’s leadership focused on aligning the diverse cultural backgrounds within the organization. Experian’s global presence and the local roots of the acquired companies required a delicate balance. Jochen aimed to leverage the strengths of both, fostering a culture of innovation and collaboration.
He recognized that while Experian’s international rules and standards were essential, understanding and respecting the local culture were equally important. By combining the best of both worlds, Experian could thrive in the DACH region.
Lessons Learned and Future Directions
Jochen Werne’s experience underscores the significance of cultural integration in successful mergers and acquisitions.
His approach, rooted in discipline, adaptability, and trust-building, has been instrumental in navigating the complexities of integration. The journey is ongoing, but the foundation of trust, communication, and a unified vision positions Experian for continued success in the DACH region.
In conclusion, Jochen Werne’s insights highlight the importance of understanding and respecting cultural differences, clear communication, and building trust through actions. His leadership journey, influenced by his Navy experience, provides valuable lessons for anyone navigating the challenges of business transformation and cultural integration.
In today’s interconnected world, the concept of social responsibility is more crucial than ever. Social responsibility refers to the ethical framework which suggests that individuals and organizations must act for the benefit of society at large. This concept extends beyond mere philanthropy; it encompasses ethical behavior, sustainable practices, and proactive engagement in addressing societal challenges.
As someone deeply involved in various social and corporate initiatives, I have seen firsthand the transformative power of social responsibility. My journey, both personal and professional, has been driven by the conviction that we all have a role to play in creating a better world. This belief has guided my engagements and is a cornerstone of my work at Experian, a company that exemplifies corporate responsibility on a global scale.
Personal Engagements and Corporate Responsibility
Throughout my life, I have participated in numerous initiatives that underscore the importance of giving back to society. Whether it’s organizing events supporting international understanding, promoting educational programs for underprivileged children or participating in environmental conservation efforts, my experiences have shown me the profound impact that dedicated individuals can make.
One of the most rewarding aspects of my role at Experian is witnessing the company’s commitment to social responsibility. Experian’s global engagements are a testament to the positive change that corporate entities can drive. From financial literacy programs that empower individuals with essential skills to environmental sustainability projects that help preserve our planet, Experian’s initiatives align perfectly with the principles I hold dear.
Experian’s Global Engagements
Experian’s dedication to creating opportunities and fostering a better future is evident in its various global initiatives. The company’s efforts span a wide range of fields, including education, financial literacy, and environmental sustainability.
For instance, Experian’s financial education programs are designed to help individuals and communities understand and manage their finances better. By providing resources and training on financial literacy, Experian empowers people to make informed decisions, ultimately leading to improved economic stability and personal well-being.
Moreover, Experian’s commitment to environmental sustainability is reflected in its numerous green initiatives. From reducing carbon footprints to promoting sustainable business practices, the company is actively contributing to the fight against climate change.
Experian DACH’s Local Impact
Closer to home, Experian DACH has made significant strides in supporting local communities. One of our recent initiatives involved donating dozens notebooks to the ObU Neofit Rilski School in Bulgaria. This school is dedicated to providing equal access to high-quality education and inclusion for nearly 200 children. By enabling access to modern technology, we hope to enhance their educational opportunities and contribute to their future success.
“We thank Experian and all the people involved in this generous donation. You are making a difference and that is what matters!” said teacher Daniel Simeonov, reflecting the heartfelt gratitude of the school community.
In addition to supporting education, Experian DACH employees are engaged in various fields, from firefighting to childcare. These diverse contributions highlight the multifaceted approach our team takes towards making a positive impact. Our commitment to education, in particular, is driven by the belief that it is a fundamental pillar for societal progress. Ensuring that children have access to the tools and resources they need to succeed is essential for building a brighter future.
The Importance of Education, Data Literacy, and Financial Literacy
Education is the foundation upon which societies build their future. It is through education that individuals gain the knowledge and skills necessary to navigate the complexities of the modern world. At Experian, we recognize that fostering education goes hand in hand with promoting data literacy and financial literacy.
In today’s data-driven society, understanding data is crucial. Data literacy equips individuals with the ability to interpret and use data effectively, enabling them to make informed decisions in both their personal and professional lives. Similarly, financial literacy is vital for empowering people to manage their finances, plan for the future, and achieve financial independence.
By investing in these areas, we at Experian are not just contributing to individual empowerment but also to the overall advancement of society. Our goal is to create a ripple effect that leads to more informed, capable, and resilient communities.
Conclusion
Social responsibility is not just a buzzword; it is a call to action for individuals and organizations alike. At Experian, we take this call seriously, striving to make a positive impact through our global and local initiatives. As we continue to support education, data literacy, and financial literacy, we are proud to contribute to a more equitable and prosperous world.
I am proud to be part of a company that values social responsibility as deeply as I do. Together, we can make a difference, one initiative at a time, and help build a better future for all.
Join the Global Offshore Sailing Team (GOST) aboard the Black Sea Dragon on an enlightening voyage exploring the critical role of maritime routes in global food security. This remarkable expedition has successfully accomplished its goals, shedding light on the essential nature of these oceanic highways in facilitating the transport of crucial foodstuffs, linking continents, and supporting millions who face the daily threat of hunger.
The Fragile Interconnectedness of Global Food Systems
Throughout the journey, the crew encountered and overcame numerous challenges, including the harrowing Suez Canal blockage. Such events starkly reveal the fragile interconnectedness of our global food system and the dire consequences of disruptions in these vital sea routes. The expedition underscores the pressing need for resilient infrastructure and international cooperation to maintain the flow of goods essential for global food security.
African Nations and the Dependence on Imported Wheat
A key focus of the expedition was the dependence of African nations on imported wheat. Many African countries rely heavily on imports to meet their food needs due to local production shortfalls caused by various factors such as climatic conditions, political instability, and economic challenges. The Black Sea Dragon’s journey highlighted how disruptions in maritime transport can exacerbate food insecurity, leading to shortages and spikes in food prices.
The Impact of Maritime Transport on Food Security
Maritime transport is the backbone of global food security, enabling the efficient and cost-effective movement of large quantities of food commodities from surplus regions to areas facing deficits. For example, wheat, a staple food for over 35% of the world’s population, is predominantly transported by sea. Any disruptions in these routes can have severe repercussions, particularly for nations heavily reliant on imports.
The Suez Canal Blockage: A Case Study
A vivid example of the impact of blocked sea routes on global food security is the Suez Canal blockage caused by the container ship Ever Given in March 2021. The blockage, which lasted six days, delayed the passage of over 300 ships, including vessels carrying critical food commodities. This incident highlighted the canal’s crucial role in stabilizing global food prices and availability, underscoring the vulnerability of our food systems to logistical disruptions.
GOST’s Initiative and Its Global Impact
Celebrating its 25th anniversary, the Global Offshore Sailing Team (GOST) leveraged the “Black Sea Dragon” expedition to raise awareness about the importance of open sea routes for food security. “We aim to underscore the significance of uninterrupted sea routes not only for food security but also for fostering international understanding,” stated Jochen Werne, GOST co-founder.
Through the expedition, GOST illustrated how essential stable and secure maritime corridors are to global peace and prosperity. This journey symbolizes hope and a shared responsibility in fostering a just and equitable world.
The Strategic Significance of the Bosporus and Turkey’s Role
The Bosporus Strait is a critical segment of the Turkish Straits, serving as a vital route for the transport of oil, natural gas, and agricultural products. Turkey’s role in maintaining the safety and openness of the Bosporus is paramount, contributing significantly to global trade, energy security, and food accessibility worldwide. By ensuring the efficient flow of goods through this strategic passage, Turkey plays a crucial role in the broader goal of achieving global food security.
Collaborative Efforts in Advancing SDG Goal 2: Zero Hunger
Programs like the World Food Program (WFP) and the Africa First Network play pivotal roles in advancing SDG Goal 2: Zero Hunger. These organizations work tirelessly to address the multifaceted challenges of hunger and food insecurity through initiatives such as emergency food aid, school feeding programs, and improving food security in regions affected by conflict and natural disasters. Their efforts demonstrate the power of global and regional cooperation in moving closer to achieving Zero Hunger.
Conclusion
The integrity of maritime transport routes is not merely an economic issue but a cornerstone in the battle against global hunger. Disruptions in sea routes can lead to severe food shortages, affecting nutritional health, educational outcomes, and economic productivity. International cooperation and stable geopolitical relations are essential to safeguard these lifelines. By maintaining these vital connections, the international community moves closer to fulfilling the basic human right to food, ensuring no one goes hungry and promoting equitable resource distribution worldwide.
We encourage individuals, communities, and organizations worldwide to draw inspiration from GOST’s legacy and engage in their own acts of peaceful diplomacy. Join us in advocating for a world where maritime routes continue to serve as lifelines for global prosperity.
If you find this journey impactful, please like and share this article to spread awareness about the importance of maintaining open sea routes for a food-secure world!
The Wirtschaftstag 2024, held on June 11 and 12 at the JW Marriott Hotel in Berlin, brought together high-profile speakers from business and politics. Germany stands at a crossroads, and now more than ever, bold market-economy ideas are needed for a strong Germany and Europe. The Social Market Economy is a centennial idea, inviting all who cherish freedom, believe in the creativity and inventiveness of citizens, respect property, and strive for performance and equal opportunity with social balance. However, the 75-year history of the Social Market Economy is also a constant battle to defend, maintain, and shape the economic order.
In this context, strong signals of shared responsibility from both business and politics are crucial to keeping the economy on track. These impulses have been set at the Wirtschaftstag 2024.
Key Highlights and The Role of Experian at Wirtschaftstag 2024
At Experian DACH, we were delighted to participate in this important event. As a subject matter expert in data and data insights, Experian played a significant role in the panel discussion on “Digitalization and AI – Transformation Opportunities for Business and Politics”. This participation underscores our commitment to leveraging data analytics to drive digital transformation, benefiting both businesses and society.
The esteemed panel participants were: Dr. Volker Wissing (Minister for Digital & Transport – MdB), Jochen Werne (CEO Experian DACH), Prof. Dr. Kristina Sinemus (Minister for Digital & Innovation, State Hesse – MdL), Petra Justenhoven (Speaker of the Board, PWC Germany) Marcel de Groot (CEO Vodafone Germany), Dr. Wolfgang Dierker (Managing Director Microsoft Germany), Hui Zhang (Managing Director NIO Europe), Carola Wahl (CEO DACH Nexi Group)
“We’re thrilled to make a joint contribution to the digital transformation journey and thereby strengthen Germany as a business location. We sincerely thank the Economic Council for this great opportunity!”
Jochen Werne, CEO Experian DACH
Perspectives and Gratitudes
A heartfelt gratitude has to go to to the organizers at the Wirtschaftsrat, especially Astrid Hamker and Wolfgang Steiger, for their dedication and leadership. Their efforts were instrumental in making Wirtschaftstag 2024 a resounding success and bringing together distinguished speakers as Friedrich Merz, MdB, Robert Habeck, MdB, Christian Lindner, MdB, Boris Pistorius, Bettina Stark-Watzinger, MdB, Dr. Volker Wissing, MdB, Dr. Marco Buschmann, MdB, Omid Nouripour, MdB, Dr. Carsten Linnemann, MdB, Alexander Dobrindt, MdB, Christian Sewing, René Obermann, Dr. Jens Weidmann
The international perspective was enriched by contributions from: Milojko Spajić, Prime Minister of Montenegro, Prof. Dr. Martin Kocher, Federal Minister for Labour and Economy of Austria, Aušrinė Armonaitė, Minister of Economy and Innovation of Lithuania
Personal Reflections
As I reflect on the Wirtschaftstag 2024, I am filled with a profound sense of gratitude and optimism. This year’s event, coming shortly after the European elections, carried a special significance. It served as a powerful signal of unity and forward-thinking, bringing together leaders from across the business and political spectrum to focus on the critical tasks ahead for a strong Germany and Europe.
A Platform for Meaningful Dialogue
The Wirtschaftstag 2024 was not just another event; it was the one of the largest Business and Politics gatherings in Germany. It provided an unparalleled platform for high-profile thought leaders and decision-makers to discuss and develop actionable recommendations for the future. The timing added an extra layer of importance, highlighting the need for bold market-economic ideas to secure the economic strength of Germany and the European continent.
The two days at the #Wirtschaftstag 2024 in Berlin have been a tremendous success, also for Experian. Engaging with high-profile participants from leading organizations and decision-makers from Germany’s business and political sectors has been truly inspiring.
Looking Forward
2024 marks several significant milestones: 75 years of the Grundgesetz and the Social Market Economy, over 30 years of the European Single Market, and the dawn of a new legislative period for the EU Parliament and Commission. These next few years will be crucial for the future competitiveness and viability of Europe.
I’m sure we all look forward to continuing this important dialogue and working together towards a prosperous future for Europe and beyond.
One of the most pressing objectives outlined in the United Nations Sustainable Development Goals (SDGs) is Goal 2: Zero Hunger. It aims to end all forms of hunger and malnutrition by 2030, ensuring that all people—especially children—have sufficient and nutritious food all year round. This article explores the importance of maintaining open sea routes for the delivery of essential food supplies like wheat, especially to regions like Africa, and how disruptions in these channels can severely impact the progress towards achieving this goal. The article also links to the noteworthy contribution of the Global Offshore Sailing Team (GOST) in raising awareness about this vital issue during their 25th anniversary expedition, “Black Sea Dragon.”
Facts to the Sustainable Development Goal 2
The United Nations states: “Goal 2 is about creating a world free of hunger by 2030.The global issue of hunger and food insecurity has shown an alarming increase since 2015, a trend exacerbated by a combination of factors including the pandemic, conflict, climate change, and deepening inequalities.
By 2022, approximately 735 million people – or 9.2% of the world’s population – found themselves in a state of chronic hunger – a staggering rise compared to 2019. This data underscores the severity of the situation, revealing a growing crisis. In addition, an estimated 2.4 billion people faced moderate to severe food insecurity in 2022. This classification signifies their lack of access to sufficient nourishment. This number escalated by an alarming 391 million people compared to 2019.
The persistent surge in hunger and food insecurity, fueled by a complex interplay of factors, demands immediate attention and coordinated global efforts to alleviate this critical humanitarian challenge. Extreme hunger and malnutrition remains a barrier to sustainable development and creates a trap from which people cannot easily escape. Hunger and malnutrition mean less productive individuals, who are more prone to disease and thus often unable to earn more and improve their livelihoods.
2 billion people in the world do not have regular access to safe, nutritious and sufficient food. In 2022, 148 million children had stunted growth and 45 million children under the age of 5 were affected by wasting.”
Importance of Open Sea Routes for Food Security
Open sea routes are vital arteries for the global food supply chain. They enable the efficient and cost-effective transportation of large quantities of food commodities from surplus regions to areas facing deficits.
For example, wheat is a staple food for over 35% of the world’s population, and a significant portion of it is transported by sea. According to the Food and Agriculture Organization (FAO), major wheat exporting nations rely heavily on maritime transport to ship their grains to different parts of the world, including Africa.
The Impact of Disrupted Sea Routes on Africa
Africa is particularly vulnerable to disruptions in sea routes. Many African countries depend on imports to meet their food needs due to local production shortfalls caused by various factors such as climatic conditions, political instability, and economic challenges.
For instance, North African countries like Egypt, Algeria, and Morocco are among the world’s largest wheat importers. Closure of key maritime passages like which serve as a critical link between continents, can delay shipments, leading to shortages and spikes in food prices. This not only exacerbates food insecurity but also heightens economic instability.. When e.g. wheat deliveries are delayed or halted, the immediate effect is a shortage of staple food items, leading to increased prices and reduced accessibility for the poorest populations. This can have cascading effects on nutritional health, particularly for children, who are most vulnerable to malnutrition. The long-term impact extends beyond health, affecting educational outcomes and economic productivity, thereby hindering comprehensive development.
Impact of the Suez Canal Blockage on Global Food Security
A vivid example of how blocked sea routes can affect global food security is the incident involving the container ship Ever Given, which became lodged in the Suez Canal in March 2021. The Suez Canal is one of the world’s busiest waterways, facilitating approximately 12% of global trade. The blockage created by the Ever Given halted the flow of goods, including significant quantities of food commodities, affecting supply chains worldwide.
The blockade, which lasted six days, delayed the passage of over 300 ships, including vessels carrying livestock and perishable goods bound for various parts of the world. According to Lloyd’s List, approximately $9.6 billion worth of goods passes through the canal each day. The delay affected the delivery of about 13 million barrels of oil to Europe from the Middle East, but also critical agricultural commodities such as grains and vegetable oils from major exporting countries, destined for Africa and Asia.
For instance, Syria, which relies heavily on wheat imports through the Suez Canal, had to ration its existing grain supplies due to delays. Similarly, the blockage disrupted the supply chains of livestock feed components like soybeans and corn, essential for meat production in many European and Asian countries. This disruption highlighted the canal’s crucial role in stabilizing global food prices and availability. The event underscored the vulnerability of global food systems to logistical disruptions and the ripple effects that can emerge from a single point of interruption in a key maritime route.
Navigating recent Vulnerabilities of Global Food Supply Chains
The ongoing crisis in the Red Sea highlights the precarious nature of global food supply chains and the cascading effects that disruptions can have on food security, particularly for economically vulnerable countries in Africa and Asia. According to Joseph Glauber and Abdullah Mamun from IFPRI, the duration and extent of the Houthi attacks will critically determine the scale of impact on shipping, market prices, and the availability of food. Although the Red Sea routes account for a smaller fraction of overall agricultural trade, persistent disruptions could force dependent importing nations to seek costlier alternatives or new suppliers. This shift could depress prices for producers, illustrating a ripple effect across global agricultural markets. The Red Sea conflict serves as a potent reminder of the fragility of supply chains and underscores the importance of maintaining flexible sourcing strategies for food imports to enhance resilience against such disruptions. This situation calls for international cooperation and strategic planning to safeguard food security amid geopolitical and logistical challenges.
GOST’s Initiative and Its Global Impact
Celebrating its 25th anniversary, the Global Offshore Sailing Team (GOST) is leveraging its “Black Sea Dragon” expedition, departing from Varna, Bulgaria, and passing through the Bosporus to Istanbul, to spotlight the importance of these issues.
“We aim to underscore the significance of uninterrupted sea routes not only for food security but also for fostering international understanding,” stated Jochen Werne, GOST co-founder.
Jochen Werne, co-founder of GOST
“Through the ‘Black Sea Dragon’ expedition, we strive to illustrate how essential stable and secure maritime corridors are to global peace and prosperity. This journey symbolizes our dedication to strengthening the bonds between nations and enhancing mutual reliance through shared challenges.”
Guido Zoeller, co-founder of GOST
Creating awareness is a powerful tool in the realm of people’s diplomacy, fostering peace and understanding by educating and engaging diverse populations on global issues. The Global Offshore Sailing Team (GOST) has harnessed this approach effectively over its 25-year history, particularly through high-visibility expeditions like the “Black Sea Dragon”, “Antarctic Blanc” or “Navigators Heritage”. These ventures serve not only as adventures but also as platforms to raise public awareness about critical global challenges such as the importance of open sea routes for food security and international cooperation.
GOST’s expeditions are emblematic of how peaceful people’s diplomacy can be conducted through the universal language of maritime travel. By navigating international waters and connecting different cultures, GOST embodies the spirit of collaboration and mutual understanding. Their journeys highlight how sustained, peaceful engagement can build bridges between nations, fostering a shared commitment to addressing global challenges.
The “Black Sea Dragon” expedition underscores the continuity of this mission of not only traversing geographic boundaries but also cultivating a deeper awareness among global citizens about the interconnectedness of our world. This voyage illustrates the critical role that safe and open sea routes play in global stability and food security, emphasizing how these waterways are arteries of international diplomacy and economic vitality.
The Strategic Significance of the Bosporus and Turkey’s Role in Maritime Security
The Bosporus Strait, a narrow, natural strait that forms part of the continental boundary between Europe and Asia, is not only a crucial segment of the Turkish Straits but also one of the world’s most significant maritime passages for international navigation. It connects the Black Sea to the Sea of Marmara, and further to the Mediterranean, serving as a vital route for the transport of oil, natural gas, and agricultural products. This strait is especially critical for all Black Sea nations, which rely on it as their primary avenue to the global markets.
Turkey’s role in maintaining the safety and openness of the Bosporus is paramount. Governed by the 1936 Montreux Convention, the management of the strait allows for the free passage of civilian vessels in peacetime while limiting the passage of naval ships not belonging to Black Sea states. Turkey, responsible for the strait’s management, plays a pivotal role in ensuring that this vital artery remains open and safe for navigation. This is crucial not only for economic reasons but also for food security, particularly for nations that depend heavily on agricultural imports that transit through these waters.
The strategic importance of the Bosporus is amplified by its challenging navigation conditions, which require precise handling and extensive local knowledge, underscoring the need for expert maritime management. Turkey’s investment in the surveillance and traffic management of the strait reflects its commitment to safeguarding this essential route. This ensures the efficient flow of goods and energy resources, which is indispensable for maintaining the stability of global markets and securing food and energy supplies to various regions.
Furthermore, Turkey’s diplomatic relations and its strategic position as a bridge between East and West play a critical role in the geopolitical landscape surrounding the Bosporus. By keeping the Bosporus open and secure, Turkey contributes significantly to the broader global objective such as the United Nations SDG Goal 2: Zero Hunger. Thus, Turkey’s management of the Bosporus is not merely a regional concern but a matter of global importance, impacting international trade, energy security, and food accessibility worldwide.
Collaborative Efforts in Advancing SDG Goal 2: Zero Hunger
There are numerous impactful programs like the World Food Program (WFP) or the Africa First Network that play pivotal roles in advancing SDG Goal 2: Zero Hunger through their dedicated initiatives. These organizations work tirelessly to address the multifaceted challenges of hunger and food insecurity around the globe.
The World Food Program, a leading humanitarian organization fighting hunger worldwide, implements a variety of programs aimed at ensuring that everyone can access the food they need for a healthy life. The WFP’s efforts include emergency food aid, school feeding programs, and improving food security in regions affected by conflict and natural disasters. By maintaining and securing open sea routes for food delivery, the WFP not only manages direct assistance but also supports local agriculture and infrastructure, which are crucial for long-term sustainability.
Similarly, the Africa First Network collaborates with local and international partners to bolster food security across African nations. This initiative focuses on enhancing agricultural productivity, building efficient supply chains, and advocating for policies that support sustainable food systems. Through education, technological innovation, and infrastructure development, the Africa First Network seeks to empower African communities to achieve self-sufficiency and resilience against food crises.
Together, these programs demonstrate the power of global and regional cooperation in moving closer to achieving Zero Hunger. Their comprehensive approach to tackling food insecurity includes not just immediate relief but also long-term strategies that address the root causes of hunger, ensuring sustainable change and progress towards SDG Goal 2.
Conclusion
The integrity of maritime transport routes is not merely an economic issue but a cornerstone in the battle against global hunger. The ramifications of disrupted sea routes extend far beyond immediate food shortages, affecting nutritional health, educational outcomes, and economic productivity. International cooperation and stable geopolitical relations are essential to safeguard these lifelines. By maintaining these vital connections, the international community moves closer to fulfilling the basic human right to food, ensuring no one goes hungry and promoting equitable resource distribution worldwide.
We encourage individuals, communities, and organizations worldwide to draw inspiration from GOST’s legacy and engage in their own acts of peaceful diplomacy. Whether through educational outreach, participating in cultural exchanges, or supporting initiatives that promote international understanding, every effort counts. Join us in championing the causes that matter most for our global community’s prosperity and peace. Together, let’s navigate towards a future where diplomacy and awareness pave the way for a harmonious world.
Sources: World Food Programme https://www.wfp.org, IFPRI https://www.ifpri.org, GOST, United Nations https://sdgs.un.org/goals, Pixabay, Africa First Network https://africafirst.net, FAO https://www.fao.org/
published on May 8, 2024 the below article in the original German version. Find the link HERE. Pictures used here are from private sources and Pixabay. Translation made by DeepL.com.
Throughout human history, transformative technological innovations have repeatedly led to impressive leaps in development that have reshaped our societies, economies, politics and daily lives in previously unimaginable ways.
The printing press developed by Johannes Gutenberg in the 15th century is a particular example of the far-reaching power of technological innovation. It was not only a tool for the mass production of books, but also ushered in the age of universal literacy. It has changed the world of work by making typists redundant and creating new professions in publishing and literature. Artificial intelligence (AI) is said to have a similarly revolutionary potential, and not just since large language models (LLM) such as OpenAI’s ChatGPT were established for the public to see. The extensive and immediately usable possibilities – such as the simplification of text generation or summarisation, coding – are inspiring. AI is about to fundamentally change the way we work today. But how do we deal with it?
The revolution through large language models: decoding their magic
At the forefront of this AI transformation are LLMs such as GPT-4. To truly understand their complex structure, one must dive deep into the underlying technologies, unravel the multitude of practical applications they enable and critically evaluate the challenges they pose. The range of applications of LLMs has already left an indelible mark on a wide variety of sectors. For example, LLMs are already creating new clarity in the confusing world of research through optimised summaries and presentations of key findings. LLMs are also leading to a paradigm shift in our understanding of work dynamics. The research report “Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality” describes this change and shows that the use of AI in a real-world work environment can lead to a significant increase in productivity: In this case, to 12.2 per cent more completed tasks and a 25.1 per cent reduction in processing time. These are impressive figures that illustrate the transformative power of AI even at today’s stage of development.
Utilisation of LLMs: Best practice approach
As a data insights company, Experian recognised the transformative essence of information early on. With the help of machine learning (ML), we gain important insights from data that companies can use to make informed decisions. In a recent video interview, Alex Lintner, CEO of Experian Software Solutions, explains the evolving role of AI in the financial sector and highlights the unprecedented opportunities that exist, particularly with carefully constructed large-scale language models.
Alex Lintner, CEO of Experian Software Solutions
Lintner explains the scalability of such technologies and the potential of using machine learning in monitoring market trends and anticipating credit risk. Technological advances are enabling machines to independently ask questions of decision makers, automate routine model monitoring processes and even predict which variables should be included in models in the future, allowing humans to focus their resources elsewhere.
In addition, Lintner highlights the enormous potential of AI for financial services, in particular agile risk detection and the associated ad hoc response management. As always, with great opportunity comes great responsibility: strict compliance, governance and transparency measures are urgently needed to ensure the ethical and sustainable use of AI. It is important to understand that the use of LLM’s is not just about improving back-end processes, but more importantly about equipping the workforce for the future. It is therefore mandatory for all Experian employees worldwide to complete the internal GenAI training programme. We see this – as well as all the other activities of our own Experian GenAI Academy – as important measures to keep our corporate culture in line with the wave of digital transformation rolling across industries.
Harmonisation of AI, business and society
Large-scale language models are now at the forefront of the AI revolution and have the ability to understand, generate and augment text, sound, images and video on a previously unimaginable scale. This has particular implications for all companies operating in data-centric industries, whose job it is to extract actionable insights from big data. Companies that utilise these opportunities for new data usage most effectively will gain market share in the future. For us, the integration of machine learning and large-scale language models in particular is not just a technological upgrade, but a comprehensive transformative strategy to reshape the future of our industry.
Innovation has always changed societies and had a lasting impact on the course of human progress. AI today represents the latest frontier where the complex interaction between humans and technology can be explored and refined. We therefore need to understand that our future most likely lies in the balance of harmonising AI and humans – a harmonisation that goes beyond mere coexistence: it involves collaboration and synergies that can merge human intuition and computing power into a powerful force that can drive profound change in all aspects of our lives.
To achieve this harmonisation, several key principles must be followed. Ethics come first. The development and use of AI must be based on a solid ethical foundation that ensures fairness, transparency and accountability. Prejudice and discrimination must be carefully avoided and it must be ensured that AI benefits all of humanity and excludes no one.
Second is education and skills. With the increasing integration of AI into our daily lives, it is important that individuals have access to the knowledge and skills they need to use this new technology. Education is key to realising the potential of AI while mitigating the associated risks. After all, collaboration is the key to success. Governments, businesses, researchers and citizens must work together across borders and sectors to realise its full potential. Interdisciplinary collaboration can pave the way for breakthroughs that benefit society as a whole.
With a strong focus on ethics, education and collaboration, we are able to create a future where AI and humans work in harmony and reach a new level of progress. This is a technological challenge, but also a societal one.
Mastering the Power of AI and Large Language Models for Business Success and Positive Social Impact
By Jochen Werne
Düsseldorf, 6 April 2023.
Throughout human history, transformative technological innovations have heralded new eras, reshaping our societies, economies, politics, and daily lives in ways previously unimaginable. The printing press, introduced by Johannes Gutenberg in the 15th century, serves as a profound testament to the sweeping power of innovation. Not just a tool for mass-producing books, the printing press birthed the dawn of widespread literacy, transforming workplaces as manual scribes became obsolete and creating new vocations in publishing and literature.
The press also catalyzed a socio-political upheaval. As literacy rates surged, so did the empowerment of the masses. Ideas, once confined to the elite, became accessible to many, seeding the Renaissance, and later, the Reformation. Niall Ferguson, in his seminal work, “The Square and the Tower,” eloquently captures this revolution, asserting that the printing press restructured historical hierarchies and networks, shifting power dynamics in unprecedented ways.[1]
In economic terms, the press laid the foundation for capitalist markets. As information became accessible, trade routes expanded, local businesses thrived, and a burgeoning middle class began to wield economic influence. On the societal front, with the proliferation of ideas came the Enlightenment, propelling societies towards principles of liberty, fraternity, and equality.
Fast forward to the close of the 20th century, and another innovation emerged as a harbinger of transformation: the internet. Much like the printing press, the internet redefined workplaces, rendering some jobs obsolete while spawning new professions in digital technology, e-commerce, and online content creation. The globalized economy we witness today, underpinned by intricate supply chains and instantaneous communication, owes its existence to the digital revolution.
Politically, the internet has both empowered and challenged established structures. Grassroots movements, from the Arab Spring to global climate change campaigns, have harnessed online platforms to mobilize support and challenge the status quo. However, it’s also provided a breeding ground for misinformation, deepening societal divides in certain instances.
Yet, as we stand on the cusp of the AI revolution, it’s crucial to reflect on lessons from our past. Both the printing press and the internet came with their boon and bane. Their essence wasn’t inherently good or bad; it was humanity’s application of these tools that rendered them so. As we navigate the realms of AI and Large Language Models (LLM), this adage holds truer than ever: Technology and technological inventions are neither good nor bad – it’s the way we use them that bestows upon them such attributes.
Chronicles of Code – Decoding the Magic Behind Large Language Models
The realm of artificial intelligence is undergoing rapid metamorphosis, and Large Language Models, such as GPT-3 and GPT-4, stand out as the front-runners in this transformation.[2] To truly appreciate the intricate tapestry of LLMs, one must delve deep into their foundational technologies, unravel the plethora of practical applications they enable, and critically evaluate the challenges they pose.
At the nucleus of LLMs is their technological backbone. These models owe their prowess to deep learning and, more specifically, the transformer architecture.[3] This intricate design enables them to sift through colossal amounts of data, synthesizing human-like text that often mirrors our nuanced thought processes. The primary education of these models stems from vast datasets spanning the breadth of the internet, but their true finesse is achieved when they’re fine-tuned using more focused datasets, enabling them to excel in specialized domains.[4]
When it comes to their application spectrum, LLMs have left indelible marks across sectors. In the labyrinthine world of research, where professionals are inundated with vast pools of data and intricate academic papers, LLMs emerge as lighthouses, offering clarity by summarizing and presenting key insights.[5] Language translation, a domain that’s been historically challenging due to the nuances and subtleties of human language, has seen remarkable enhancements with LLMs. They’ve added a layer of contextual depth that was previously lacking in traditional translation tools.[6] The educational sphere is undergoing a renaissance, thanks to LLMs. Their capabilities in offering personalized content, adapting to individual learning curves, and providing immediate feedback promise a future where learning is both tailored and transformative.[7]
Yet, every silver lining has a cloud. The inherent challenges of LLMs are subjects of extensive discourse. Their reliance on training data can be their Achilles’ heel — biases in training data can lead to prejudiced outputs, a significant concern given the widespread influence of AI.[8] Additionally, their textual outputs, while sophisticated, can sometimes lack true human understanding, leading to contextually skewed results.[9] The broader societal implications of LLM adoption, especially the potential displacement of jobs and questions of ethical accountability, are pressing concerns that demand attention.[10]
The tapestry of LLMs in real-world scenarios paints a vivid picture of their transformative potential. Customer service has seen an overhaul, with AI tools streamlining interactions and enhancing user experiences.[11] The corridors of journalism echo with the influence of LLMs, aiding in content creation, editing, and even pioneering new forms of storytelling.[12] The legal world, often bogged down by voluminous documents, benefits immensely from AI’s precision in document reviews, bringing efficiency and reducing human errors.[13]
As we segue into “Redefining Workflows: The Profound Influence of LLMs on the Modern Workforce,” we’ll delve deeper into the myriad ways LLMs are reshaping our professional landscapes.
A New Work Paradigm: LLMs’ Crucial Contribution to Contemporary Business Achievements
The release of Large Language Models has initiated a paradigm shift in our understanding of the workforce dynamics. The ground-breaking research presented in the paper titled “Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality,” authored by the illustrious team of researchers including Fabrizio Dell’Acqua, Edward McFowland III, Ethan Mollick, Hila Lifshitz-Assaf, Katherine C. Kellogg, Saran Rajendran, Lisa Krayer, François Candelon, and Karim R. Lakhani, brings forth significant insights into this transformation.
Praise is due to this team of researchers for conducting a well-structured, extensive experiment involving 758 consultants from the global management consulting firm, Boston Consulting Group (BCG). Their analysis offers invaluable insights into the applications and limitations of AI in knowledge-intensive tasks. The concept of a “jagged technological frontier” introduced in their paper signifies the nuanced capabilities of AI. It underscores the notion that while AI excels in certain tasks, others that might seem similar in complexity can be beyond its scope.
Their findings show that when consultants utilized AI in the realm of its capabilities, there was a noticeable uptick in productivity, with tasks being completed 12.2% more and 25.1% faster. The quality of results also soared, witnessing an impressive increase of over 40%. These figures paint a vivid picture of the transformative power of AI when applied within its domain of expertise. Yet, it’s essential to note that outside this domain, relying on AI may lead to counterproductive results.
The paper also identifies two distinct ways in which consultants engaged with AI. Some consultants acted as “Centaurs,” seamlessly dividing and delegating tasks between themselves and the AI, while others emerged as “Cyborgs,” integrating their workflows with the AI in an ongoing symbiotic interaction. Such observations are pivotal as organizations strive to harness the optimal potential of AI, while also understanding its limitations.
LLMs like ChatGPT, as highlighted in the research, have redefined the frontiers of automation, demonstrating capabilities in areas previously reserved for the most educated, creative, and highly paid workers. The research suggests that these models are more than mere tools; they are evolving entities with vast yet unpredictable capabilities. Their potential to transform workflows and elevate the quality of work output in the consulting realm, and possibly across other industries, is profound.
Yet, for all their potential, the research astutely underscores the risks associated with the blind adoption of LLMs. Misplacing trust in these systems for tasks outside their capabilities can lead to inaccurate results and compromise the integrity of the work. The inherent opacity of these models further complicates this dynamic. Without a clear understanding of their strengths and weaknesses, professionals may be navigating a minefield without a map.
The “jagged technological frontier” metaphor therefore poignantly encapsulates the ever-evolving landscape of AI capabilities. This invaluable research serves as a compass, guiding professionals and organizations on how to integrate LLMs efficiently into their workflows, optimize productivity, and elevate the quality of outputs. The ripple effects of LLMs on the workforce are profound, and as we traverse this technological frontier, it is paramount to tread with both enthusiasm and caution. The dedication and rigor of the research team in shedding light on this complex subject deserve commendation. Their work has undoubtedly laid a solid foundation for further exploration in the transformative world of AI and its implications on the workforce.[14]
The importance of discerning the “jagged technological frontier” concept is crucial. While some tasks may appear similarly intricate on the surface, not all can be executed efficiently by AI. Drawing from own research and the extensive studies by the German AI platform “Plattform Lernende Systeme“, it’s pivotal to distinguish which tasks are best tackled with human-AI collaboration.[15]
Harnessing the Power of LLMs: Best Practice approach from a global data insights market leader
Experian[16], as a global data leader, recognizes the transformative essence of information. Through AI and Machine Learning, Experian gleans significant insights from data, empowering businesses to make enlightened decisions. Additionally, the principle of ‘data for good’ resonates profoundly with the philosophy. By responsibly channeling data, the company not only catalyze economic progress but also mitigate societal challenges.
Experian has not only acknowledged the transformative potential of Machine Learning and Large Language Models but also fervently acted upon it.
Alex Lintner,[17] CEO of Experian Software Solutions, recently provided insights into the evolving role of artificial intelligence (AI) in the financial sector during a video conversation.[18] Lintner emphasized how AI, especially carefully constructed large language models, offer an unprecedented opportunity for the industry. He elucidated the scalability of such technologies, noting the potential to leverage machine learning for monitoring market trends and preempting credit risks as market circumstances change. This technological evolution allows machines to autonomously create prompts for decision makers, automate routine model monitoring processes, and even forecast variables that should be included in models in the future, thus enabling humans to channel their resources towards creating innovative solutions and supporting strategic initiatives.
Moreover, Lintner shed light on the vast potential of AI in financial services. He highlighted the importance of agile risk detection and swift response mechanisms, indicating that this is just scratching the surface. Experian alone has pinpointed over 200 potential use cases. However, the immense capabilities of AI also beckon significant accountability. Lintner underscores the paramount need for rigorous compliance, governance, and transparency measures to guarantee AI’s ethical and judicious application.
On the ethical front, Lintner asserted, “Protecting data and ensuring responsible use of generative AI is not just a priority; it’s an imperative.” Given Experian’s pivotal role in handling sensitive financial information, establishing and maintaining trust is of utmost importance. Therefore, integrating stringent ethical standards, principles, and methodologies is crucial to the successful and responsible rollout of AI technologies.
As for steering the future, Lintner offers a clear roadmap: focus on acquiring talent in the AI domain, consistently gather customer feedback, and astutely prioritize opportunities. He believes that truly innovative solutions emerge from a profound understanding of customer necessities—a philosophy that resonates deeply in his perspectives.
In data companies globally every decision, every product, every innovation stems from the intricate understanding of the numbers. As the vast amounts of data they manage continue to grow, there’s an increasing need for more sophisticated ways to handle, analyze, and extract insights from it. Enter Machine Learning (ML) and, more specifically, Large Language Models (LLMs).
Ahead of the Curve: Cultivating a Workforce Fit for the Future
It’s important to understand that the use of LLMs isn’t just about improving backend processes; it’s especially about equipping the workforce for the future. When I took the helm on August 1st, 2023 as the new CEO of Experian DACH, one of the first directives on day one – inspired by the example of other Country Managers within the group – was to motivate all employees in Germany, Austria and Switzerland to undergo the corporate GenAI training. This wasn’t just a nod towards technological advancement; it was a strategic move to ensure that the very culture of the company was aligned with the digital transformation wave sweeping across industries.
By doing so, Experian isn’t merely training its employees on a new tool; it was nurturing a mindset of innovation and adaptability. With hands-on experience from the GenAI training, employees were encouraged to conceptualize practical roll-out use cases. For example, marketing professionals can incorporate insights from LLMs into their engagements, delivering more personalized and impactful messages to clients. In the meantime, the sales teams were able to use LLM-generated insights to identify potential markets or niches that had not yet been tapped – today, the vast majority of Experian employees worldwide are not only trained, but use GenAI in their daily work and develop new use cases on the fly.
Training and Learning is not just about immediate benefits. It is a forward-thinking strategy to ensure that new technologies, as LLMs continue to evolve and their applications grow, the company’s workforce would not be left behind. It is about fostering a culture of continuous learning, adaptability, and leveraging cutting-edge technology to stay ahead in highly competitive industries.
Redefining an Industry’s Future
Large Language Models (LLMs) like GPT-4 are at the forefront of the AI revolution, harnessing the capability to understand, generate, and augment human-like text at a scale previously unimaginable. This progression in AI has significant implications for businesses, especially for data-centric industries that are looking to derive actionable insights from vast data volumes.
One of the key challenges for data-centric companies is extracting meaningful insights from massive data sets. Traditional methods are often cumbersome, and while they can yield valuable results, the increasing volume, velocity, and variety of data have made these methods less efficient. Machine Learning offers a solution to this challenge. By leveraging algorithms that can learn from and make decisions based on data, ML has revolutionized the way companies interpret complex data structures.
Therefore, as data continues to be the backbone of our digital age, companies that can harness its power most effectively will lead the charge. For data insights giants like Experian, integrating Machine Learning, and especially Large Language Models, isn’t just a technological upgrade; it’s a transformative strategy to redefine their industry’s future.
Conclusion: The Harmonization of AI and Humanity
Throughout history, innovations have undeniably transformed societies, leaving a lasting impact on the course of human progress.[19] Whether we consider the revolutionary impact of the printing press or the transformative power of the internet, each technological leap has reshaped our world and the way we live. In the face of these profound changes, humanity has consistently demonstrated its ability to adapt, evolve, and harness these tools for our collective betterment.[20] In this context, artificial intelligence and with-it large language models emerges as the latest frontier where the intricate interplay between humans and technology is being examined and refined.
Rather than surrendering to the allure of extreme narratives, such as an AI-dominated dystopia or a utopian world of boundless prosperity, it is imperative to acknowledge that the future most likely rests within the delicate equilibrium of harmonizing AI and humanity.[21] This harmonization goes beyond mere coexistence; it encompasses collaboration and synergy, merging human intuition and the computational prowess of AI to create a potent force capable of driving profound transformations in all aspects of our lives.
As we venture further into this uncharted territory, the wisdom of great thinkers continues to guide us. Albert Einstein once remarked, “Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating progress, giving birth to evolution”.[22] In the context of AI and humanity, this sentiment resonates profoundly. Our imagination and creativity serve as the catalysts for progress, and AI serves as the tool that can amplify and expedite our ability to transform imaginative ideas into reality.
The future may indeed be obscured by uncertainty, but it is unquestionably a future that we, as a collective humanity, possess the power to shape.[23] It is a canvas waiting for us to paint our hopes and aspirations upon, guided by principles of meticulous consideration and ethical responsibility.[24] The horizon of AI’s potential is expansive, and the possibilities it presents are as vast as the human imagination itself.
To achieve this harmonization, several key principles must be prioritized. First and foremost is ethics.[25] The development and deployment of AI must be grounded in a robust ethical framework that ensures fairness, transparency, and accountability. We must diligently guard against biases and discrimination, guaranteeing that AI benefits the entirety of humanity, leaving no one marginalized.[26]
Second, education and empowerment are paramount.[27] As AI becomes increasingly integrated into our daily lives, it is essential that individuals have access to the knowledge and skills necessary to navigate this new landscape. Education empowers us to harness AI’s potential while mitigating its associated risks.
Lastly, collaboration forms the linchpin of success.[28] Governments, businesses, researchers, and individuals must collaborate, transcending borders and sectors to harness the full potential of AI. Interdisciplinary collaboration can pave the way for breakthroughs that benefit society as a whole.
The harmonization of AI and humanity offers a promising path forward.[29] It is a journey that requires us to draw upon the wisdom of the past, the imagination of the present, and the ethical considerations of the future.[30] As we navigate this uncharted waters, we must remember that the power to shape our destiny resides within our collective hands.[31]
With knowledge, responsibility, and a harmonious integration of AI with human expertise, the future horizon is indeed one filled with promise and potential. It is a future where the partnership between humans and AI can lead to a brighter and more equitable world for all.
[1] Ferguson, N. (2018). The Square and the Tower: Networks and Power, from the Freemasons to Facebook. Penguin Press.
[2] Brown, T. B., et al. (2020). “Language Models are Few-Shot Learners.” OpenAI
[3] Vaswani, A., et al. (2017). “Attention is All You Need.” NeurIPS
[4] Devlin, J., et al. (2018). “BERT: Pre-training of Deep Bidirectional Transformers for Language Understanding.” Google AI
[5] Chui, M., et al. (2018). “Notes from the AI frontier: Tackling Europe’s gap in digital and AI.” McKinsey Global Institute
[6] Hale, S. A. (2016). “Commercial Applications of Machine Translation.” The Oxford Handbook of Translation Studies
[7] Luckin, R. (2017). “Towards artificial intelligence-based assessment systems.” Nature Human Behaviour
[8] Bender, E. M., & Gebru, T. (2021). “On the Dangers of Stochastic Parrots: Can Language Models Be Too Big?” Proceedings of FAccT.
[9] Lipton, Z. C., & Steinhardt, J. (2018). “Troubling Trends in Machine Learning Scholarship.” arXiv preprint
[10] Russell, S. (2019). “Human Compatible: Artificial Intelligence and the Problem of Control.” Viking
[11] Huang, M. H., & Rust, R. T. (2018). “Artificial Intelligence in Service.” Journal of Service Research
[12] Graefe, A. (2016). “Guide to automated journalism.” Tow Center for Digital Journalism, Columbia University
[13] Surden, H. (2014). “Machine Learning and Law.” Washington Law Review
[14] Dell’Acqua, F. et al. (2023). Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality. Harvard Business Review.
Every week, passionate ocean lover Christian Weigand interviews a different passionate ocean lover in his BLUE AWARENESS PODAST “HEROES OF THE OCEANS”. I had the pleasure and honour of being his guest. You can listen to our inspiring conversation in German by following this LINK TO THE ORIGINAL PAGE.
Christian writes: “This episode features Jochen Werne, a “people diplomat” who organises sailing expeditions to commemorate historic moments, bring people together and deliver important messages. He receives support from well-known personalities such as Prince Albert II and the Queen of England.
Jochen discovered his passion for the sea as a navigator in the navy, where he himself was an instructor on the Gorch Fock. Although his professional career brought him back to land, he is still an enthusiastic sailor. He founded the GOST (Global Offshore Sailing Team) @expeditionblueocean, in which people from different nationalities set off on expeditions to raise awareness for sustainability and peace”
Fascinating stories of the ocean adventure. The heroes of the seas inspire you in an interview with Christian Weigand with their unique experiences at sea. Dive into the world of water sports enthusiasts, researchers, explorers, adventurers and conservationists and be inspired!
You can find pictures and further information on Instagram at @Helden_der_Meere
“A Life for the Ocean” is a book that accompanies the podcast. It tells 10 stories about the heroes of the oceans and is visually stunning in its enthusiasm for the ocean. You can order it at www.ein-leben-fuer-den-ozean.de.
by Jochen Werne
published on May 8, 2024 the below article in the original German version. Find the link 
