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.
Update of the Interview held by MONACŒCOART® founder Maurizio Abbati Interview with Jochen Werne, Co-Founder & Expedition Leader at Global Offshore Sailing Team & CEO at Experian D/A/CH.
Find the original interview and much more here at MONACŒCOART®
Updated: Feb 11, 2024
Jochen Werne: Innovation and Business, Society and Diplomacy, Ocean and Passion strongly aim at a positive change for the future.
International expert in finance and blockchain, head of several private and corporate Banking divisions, keynote speaker, actively committed in diplomacy and economy transformation following the current shift to Sustainable Development as wished by United Nations and major political, technical and business bodies, he is extremely fond of communicating his passion for oceans and the virtuous interlink between human beings and nature.
Jochen Werne strongly believes in the vital role of individual diplomatic efforts in maintaining peace and a balanced approach to preserving natural ecosystems. He asserts, „Innovation and business, society and diplomacy, ocean and passion are all intricately linked. In today’s interconnected world, our diverse talents can collectively drive positive change every day.“ His insights reflect a profound understanding of the interconnectedness of various elements in fostering international relations.
Werne’s adventurous spirit and deep respect for the scientific community’s contributions to nature have led him to organise numerous ocean missions. These missions have gained significant recognition from esteemed figures such as H.S.H. Prince Albert II of Monaco, the President of France, and the President of Austria, enhancing his knowledge and experience.
Furthermore, Werne co-founded the Global Offshore Sailing Team, an international group comprising members worldwide with significant naval experience. This group is dedicated to preserving naval traditions and emphasizing the importance of ocean expeditions and people’s diplomacy for supporting international understanding
MONACŒCOART® had the pleasure to collect a meaningful feedback directly from Jochen Werne (J.W.), Co-Founder & Expedition Leader at Global Offshore Sailing Team (GOST).
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MONACŒCOART®: Jochen Werne, how did your passion for the oceans and sailing come about?
J.W.: As a child growing up in the countryside on the border with Switzerland, the world outside my parents’ home always had a great attraction for me. Notably, the Sea with its magical sense of endless freedom, adventure and beauty has always been a trigger in my life. And this fascination still inspires me even though I have sailed the seven seas. Maybe it will never disappear. I had my first contact with sailing during school holidays on Lake Constance. Then, I joined the navy, where I had the privilege to serve for almost two years as a navigator on the three-masted sailing ship ‘Gorch Fock. That finally ignited my passion for the oceans and sailing.
MONACŒCOART®: What values have you learned after so many years of shipping?
J.W.: The most important one is RESPECT. Probably every ocean sailor and mariner would confirm it. As a sailor you experience the marine element in its most breath-taking calm and beauty and its most deadly and dangerous brutality. Respect helps to enjoy one side of the coin and survive the other. Respect leads to this deeper understanding that Nature is in many ways more important and also more powerful than ourselves. The fact that makes us feel humbly is to understand that Nature can always live without us, but we cannot live without Nature. Moreover, a sailor learns how to use Nature to benefit from its power in the best and most sustainable way and to emotionally experience its pure and infinite beauty.
MONACŒCOART®: Which marine expedition has shaped you more than others? Why?
J.W.: Every expedition has its uniqueness and therefore it is difficult to prefer one over the others. However, the ‘Arctic Ocean Raptor’ was very special to me. It took us from the northern Norwegian city of Tromsø across what sailors call the ‘devil’s playground’, the Barents Sea, to a spectacular natural habitat called Spitsbergen at 80° North. Despite its up-north location, the climate is quite mild due to the Gulf Stream. As our expedition approached Svalbard after three days of sailing through dense fog, we encountered a huge ice barrier that broke away from the cold eastern side of the island due to the warm conditions and drifted on with the current. This, combined with a 9-bft (= Beaufort scale) storm, made the voyage a real challenge, but also impressively demonstrated the fragility of our ecosystem.
MONACŒCOART®: Which measures do you think are most important to preserve marine ecosystems? Why?
J.W.: There is no doubt that before starting a movement or action, awareness must be raised. This step is of utmost importance, otherwise one remains lonely and therefore a committed but silent to action interlocutor. The Principality of Monaco has a long tradition of identifying problems for our marine ecosystem and taking action to make many aware of them. H.S.H. Prince Albert I of Monaco immediately recognised the dangers of bottom fishing with the new means of steam technology. Jacques Cousteau not only served science but brought the beauty of the sea into everyone’s living room with his work behind the camera and inspired new projects to protect the oceans. Last but not least, H.S.H. Prince Albert II of Monaco is the perfect example of how this has not only become Monaco’s heritage but a lived tradition. We are grateful that he has supported us in our expeditions to raise awareness and thus contribute to the conservation of our marine ecosystems.
MONACŒCOART®: You have already pointed out several times that scientific and fact-finding missions are particularly effective for intercultural and diplomatic exchange. What makes them instruments of dialogue?
J.W.: Our oceans are the fluid connection between our nations. And even though we are citizens of nations, we all belong to one Planet. As seafarers, we are directly dependent on nature and national thinking takes a back seat. In the daily challenge at sea, nationality, race or gender are not important. What really matters is to achieve our goals as a team, otherwise we will all fail. This also applies to us as a human race. The challenges before us are global challenges that no single nation can solve alone. We need a collective effort, and we have so many examples where the global community has done it together. One of my favourite examples is the Antarctic Treaty, which was negotiated at the height of the First Cold War and still provides the basis for joint peaceful governance of Antarctica today.
MONACŒCOART®:What place does the Principality of Monaco have in the international expeditions that you carry out as part of the Global Offshore Sailing Team (GOST)?
J.W.: We are more than grateful to H.S.H. Prince Albert II of Monaco, the Yacht Club de Monaco, its Board of Directors with Bernard d’Alessandri, Gerd Ziegenfeuter, the staff and members as well as the press for their excellent support in our common tasks. Together we were able to achieve outstanding results. Starting with the expedition ‘Antarctic Blanc’ 2018, which resulted in a state act supported by 19 nations including the United Nations, to the Prince Albert I Memorial Expedition ‘Navigators Heritage’. Together, we have succeeded not only in supporting science, but also in bringing people and nations closer together and raising awareness of the needs of our oceans.
MONACŒCOART®:GOST expeditions have been awarded the highest honours by heads of state and international institutions. What is the recognition to which you are most attached? Why?
J.W.: We are more than grateful to have been honoured with a State Medal for our commitment to environmental protection or with the Ancla d’Oro (Golden Anchor) of the Asociación para la Investigación y Difusión de la Historia Naval de Cuba and the Admiral of the Fleet the Lord Boyce Award for promoting international understanding. Among all the awards, the highest recognition for me is the fascinated smile on a young person’s face when one of the stories of the sea lights the flame of passion for marine elements. It is their spirit that will form the basis for future action. Just as others in the past like Jacques Cousteau have lit a fire in us for the Sea. It is the quote attributed to the brilliant Antoine de Saint-Exupéry, author of the beautiful novel Le Petit Prince, that probably describes it best: If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to long for the vast, endless sea. ***
? ✒By Maurice Abbati
To know more about Jochen Werne’s ocean expedition project please visit:
The rise of AI and ML in fraud prevention can lead to a new era of digital trust and compliance
Author: Jochen Werne / 26.12.2023
In an era marked by rapidly advancing technology and increasing global interconnectivity, the fight against online fraud has become a paramount concern for financial institutions, businesses, and regulators worldwide. Part of my professional work revolves around understanding and mitigating the risks associated with financial fraud. The Experian Forrester Fraud Research Report 2023, which was recently released, sheds light on the escalating threat of online fraud and the evolving strategies to counter it, particularly through the use of Machine Learning (ML) and Artificial Intelligence (AI).
The report’s findings are stark: a 74% increase in fraud losses in Germany, reflecting nearly the global increase rate. This surge is not just a statistic; it’s a clear indication of the sophisticated and pervasive nature of modern financial fraud. Companies across various sectors are feeling the impact, with financial services bearing the brunt. This trend is deeply concerning not only for the economic health of individual businesses but also for the broader stability and security of the financial system.
From a geopolitical perspective, the rise in online fraud is a multifaceted challenge. It’s a threat that transcends borders, affecting relations among nations, and has become a significant factor in international policy and security discussions. Countries, including Germany, are increasingly recognising the need for cooperative international efforts to combat this scourge. The geopolitical implications are profound, as fraud undermines economic stability and erodes public trust.
Turning to the German banking sector, the issue of compliance and reputation risk under the framework of Minimum Requirements for Risk Management (MaRisk) is particularly pertinent. Banks are finding themselves at the forefront of the battle against online fraud, necessitating robust risk management strategies that align with regulatory requirements. Under MaRisk, the mandate is clear: implement effective, comprehensive controls to detect, prevent, and manage fraudulent activities. The reputational risk for banks and their board members is immense; a single lapse can lead to significant financial losses, legal consequences, and lasting damage to customer trust.
In this challenging landscape, AI/ML-based fraud prevention methods stand out as beacons of hope. These technologies offer the promise of enhancing detection capabilities, reducing false positives, and adapting swiftly to new fraudulent tactics. However, their implementation must be undertaken with a clear understanding of the ethical implications and potential biases inherent in AI systems. As we embrace these technologies, we must also commit to transparency, accountability, and continuous improvement to ensure they serve the interests of all stakeholders fairly and effectively.
Despite the challenges, I believe there is a path forward that balances the need for security with the imperative for innovation and growth. The key lies in embracing a multi-faceted approach to fraud prevention that leverages the best of technology, human expertise, and regulatory compliance. ML, with its ability to learn and adapt to new patterns, offers a powerful tool in this fight. However, its effectiveness hinges on the quality of data, the integrity of algorithms, and the wisdom of the humans who guide its evolution.
The German companies surveyed in the study are acutely aware of the challenges and opportunities presented by AI/ML in fraud prevention. The overwhelming majority recognise the efficacy of ML-based approaches and anticipate their increasing dominance in the field. Yet, they also acknowledge the hurdles, including the costs associated with deploying advanced fraud prevention solutions, the need for continuous adaptation, and the importance of addressing the ethical considerations of AI use.
In my experience, one of the most critical factors for success in this endeavour is collaboration. Tackling online fraud is a collective effort that requires the involvement of businesses, regulators, technology providers, and consumers. By working together, sharing knowledge, and fostering a culture of innovation and vigilance, we can stay ahead of fraudsters and protect the integrity of our financial systems.
Another vital aspect is education and awareness. Both consumers and employees must be informed about the risks of online fraud and the steps they can take to prevent it. Regular training, robust policies, and a culture of security are essential in creating a resilient defense against fraud.
Finally, we must recognize that the fight against fraud is an ongoing battle. As technology evolves, so too will the tactics of fraudsters. We must remain agile, constantly updating our strategies, investing in new technologies, and adapting to changing regulatory landscapes. This dynamic approach is not just about defense; it’s about building a stronger, more secure future for everyone.
The Experian Forrester Fraud Research Report 2023 is a call to action. It highlights the urgent need for enhanced strategies, stronger collaboration, and a steadfast commitment to ethical, innovative solutions in the fight against online fraud. As leaders in the financial services industry, we have a responsibility to take the helm, steering our organisations towards safer waters in this tumultuous sea of digital threats. By harnessing the power of AI/ML, prioritising ethical considerations, and fostering a culture of collaboration and continuous learning, we can not only mitigate the risks of online fraud but also pave the way for a more secure, prosperous, and trustworthy financial ecosystem.
From the eloquent words of Shakespeare in Henry V, where he once proclaimed, “all things are ready if our minds be so”^1 to the monumental shifts brought by Gutenberg’s printing press^2, history reminds us that change is both an inevitable and defining characteristic of human progress. As the world stands at the threshold of a new epoch marked by rapid technological shifts and pronounced geopolitical transformations, this profound sentiment compels us to reflect on the paramount importance of preparedness and perspective. The way societies respond to these shifts determines the direction of their trajectory. In our current age, Europe finds itself at the nexus of global transformations driven by technological advancements and geopolitical tectonics.
Technology: A Historical Reflection
Peering through the lens of history, one quickly realizes that technology has been both a beacon of hope and an augury of upheaval. Take the 15th century’s monumental invention of the printing press as a case in point^2. This groundbreaking innovation democratized access to information and catalysed a substantial uptick in literacy rates across Europe. As Eisenstein posits, the “Printing Revolution” catalyzed an era where knowledge was no longer the privilege of the few but a right of the many^2. Yet, its reverberations were not confined to just reading and writing. The press became the vessel through which Martin Luther disseminated his Ninety-Five Theses, triggering a religious revolution that reshaped the European continent.
However, the journey wasn’t without turbulence. This democratization of knowledge played a pivotal role in challenging the established order, culminating in events like the Reformation, which MacCulloch describes as Europe’s great house divided^3.
Niall Ferguson, in “The Square and the Tower”, beautifully illustrates the timeless tension and interplay between networks and hierarchies^4. Historically, technologies like the printing press have emerged as disruptors, challenging established orders and reshaping hierarchies. The press, for instance, allowed for the free flow of ideas, becoming an early network that democratized information. Yet, not everything it propagated was for the betterment of society. The infamous “Malleus Maleficarum”, an ostensibly scholarly treatise, fueled the flames of the European witch hunts, leading to persecution, paranoia, and a dark chapter in history^5.
From Past to Present: The Tech Geopolitical Nexus
Fast forward to the present, and we witness a world where technology continues to shape geopolitical realities. Maddison’s macro-economic study reveals that the global center of economic gravity has been steadily shifting towards the East, particularly since the dawn of the 21st century^6. Nowhere is this shift more apparent than in the realm of technology.
The US-China tech rivalry, explored by Fuller, highlights the strategic challenges posed by China’s technological ascent^7.
The race for supremacy in AI, quantum computing, 5G, and biotechnologies marks the modern-day power play. But this isn’t merely about technological one-upmanship; it signifies a larger canvas of geopolitics, economics, and even societal values.
Many analysts are drawing parallels to the Cold War, coining the term “Tech Cold War” or “Cold War II”. Unlike the 20th-century version, primarily characterized by nuclear deterrence between the USSR and the US, this new Cold War positions the US and China in an intense rivalry for technological, economic, and military dominance. In the midst of this rivalry, both nations are hyper-aware of the stakes.
Navigating the Waters of New Geopolitical Paradigms
More than a century ago, the naval strategist Alfred Thayer Mahan, in his seminal work on sea power, postulated that maritime dominance was crucial to national greatness.
Today the Indo-Pacific has become the focal point of 21st-century geopolitics. Here, China’s assertive ‘Two Ocean Strategy’ is emblematic of its ambitions to exert influence both in the Pacific and the Indian Ocean. This expansive maritime vision is not just about sea lanes and trade; it’s a reflection of China’s aspirations to be a global power.
Simultaneously, the Taiwan question looms large in this maritime strategy. Its strategic location in the first island chain poses both an opportunity and a challenge for Beijing. Control over Taiwan would offer unencumbered access to the broader Pacific.
However, the rise of one power often brings countermeasures by others. The ‘AUKUS’ agreement between Australia, the United Kingdom, and the United States is a manifestation of this dynamic. While cloaked in the language of technological collaboration, especially in the realm of nuclear-powered submarines, the underlying intent of AUKUS is clear. It seeks to counterbalance China’s growing naval capabilities and assertiveness, particularly in the South China Sea.
Reflecting on Mahan’s sea power doctrine in this context provides a sobering perspective. Mahan believed that maritime dominance was the linchpin of global influence. Yet, he also understood the responsibilities and challenges that came with such power. In our contemporary setting, while nations pursue their maritime strategies, it is imperative they also embrace the principles of dialogue, cooperation, and conflict avoidance.
Taiwan epitomizes this interplay. As a beacon in semiconductor manufacturing, Taiwan’s geopolitical relevance can’t be overstated. Any instability could trigger economic consequences potentially dwarfing the aftermath of the Covid-19 pandemic^9.
Taiwan and Europe: Quietly Interwoven, Profoundly Connected.
In the intricate web of global technology supply chains, few names stand out as prominently as Taiwan Semiconductor Manufacturing Company (TSMC). Founded in 1987, TSMC has ascended the technological hierarchy to become the world’s leading semiconductor foundry, a testament to its unwavering commitment to innovation and excellence.
TSMC’s significance is multifaceted. For one, it’s the world’s largest dedicated independent semiconductor foundry^8. With clients ranging from major tech giants like Apple and Nvidia to burgeoning startups, TSMC’s production underpins a vast swathe of the digital products and solutions we rely on daily. However, TSMC’s role isn’t merely a commercial or technological one. It is geopolitical. With the escalating “Tech Cold War” between the U.S. and China, TSMC finds itself at an intriguing junction. The company’s strategic importance is underscored by global reliance on its cutting-edge chip manufacturing capabilities. This reliance has not only made TSMC a coveted partner but also a strategic asset in the larger scheme of global geopolitics. The U.S. push to ensure TSMC sets up manufacturing bases on its soil, and China’s keen interest in the semiconductor sector, highlights the foundry’s pivotal position.
Furthermore, TSMC embodies Taiwan’s broader significance in the tech world. As the geopolitical tussle intensifies, Taiwan – and by extension, TSMC – becomes a linchpin for global tech supply chains. A disturbance in TSMC’s operations, as speculated, could have cascading ramifications across industries, from consumer electronics to automotive and healthcare. Any significant disruption in this intricate supply chain would reverberate globally, with experts suggesting a potential 5% drop in global automotive production^9.
As chips become smaller, denser, and more powerful, the precision and capability of lithography machines must evolve in tandem.
Here’s where Europe and ASML, a Dutch gem, comes into play. The company is the sole producer of extreme ultraviolet (EUV) lithography machines^8, an advanced technology that allows for the creation of incredibly dense and efficient chips. With transistors now approaching atomic scales, EUV lithography is no less than a technological marvel, allowing chipmakers to etch circuits just a few nanometers wide.
However, the conversation around ASML isn’t merely about technological mastery. Given its unique position as the only producer of these EUV machines, ASML enjoys a quasi-monopolistic status in this niche yet profoundly impactful domain. In an era where technological supremacy is increasingly intertwined with geopolitical power, also ASML’s importance cannot be overstated. The machines they produce are not just expensive and sophisticated pieces of equipment; they are, in many ways, gatekeepers to the next generation of digital innovation.
Such a near-monopoly naturally draws attention. Nations and corporations are keenly aware of the strategic value inherent in controlling or accessing state-of-the-art chipmaking technology. With the ongoing technological cold war, where semiconductor supply chains have become part of the geopolitical chessboard, ASML finds itself in a spotlight it never sought but cannot avoid.
Europe’s Crucial Pivot
Europe’s position in this evolving tech landscape is unique. While traditionally viewing the Atlantic alliance as a cornerstone of its foreign policy, the rise of China necessitates a recalibrated approach^10. Europe’s interlinked trade with China, especially through critical chokepoints like the Malacca Strait, underscores the strategic dimension of this relationship^11.
In this whirlwind of technological and geopolitical flux, Europe is not an idle spectator. With a collective GDP nearing $22 trillion, it wields considerable influence. Europe’s role is multi-dimensional: an economic powerhouse, a voice of reason in tumultuous times, and often a mediator in global disputes.
The ECB recognizes that the financial institutions it oversees must adapt to these transformative times. A crucial element of this adaptation is embracing digitalization, with a special emphasis on robust data-driven risk management.
Strengthening Resilience: The intricate web of global economies translates to shared vulnerabilities. It’s imperative for Europe’s financial edifice to be robust, equipped to handle external shocks, and maintain systemic stability.
Digitalisation & Institutional Strengthening: The burgeoning fintech sector necessitates a complete metamorphosis for legacy banks. This isn’t a mere cosmetic digital overhaul. Banks need to internalize and deploy intelligent digitalization. Central to this transformation is data analytics, supercharged by AI. Harnessing data, drawing meaningful insights, and predicting trends will determine who thrives in this new era.
Climate Change Initiatives: Europe has consistently championed sustainability. The financial sector’s alignment with green, sustainable practices isn’t just altruistic; it’s also economic prudence, ensuring long-term viability and stability.
The above mentioned ECB focus is highlighted by Experian’s 2023 report on why AI-driven, regulatory-compliant analytics solutions are becoming imperative for European banks^13.
The AI Paradigm: Europe’s value-based Ethical Approach
Europe’s approach to AI regulation, championing the cause of ‘explainable AI’, shows its commitment to integrating technology with ethics. This dedication harks back to its legacy of literacy and the importance of accessibility, a theme explored by Graff^14. As Europe navigates the ‘Asian Century’^15, it does so with a clear vision: to leverage its historical experiences and chart a course that balances innovation with ethical considerations. The European AI Act encapsulates this approach. The Act’s core philosophy revolves around ensuring AI applications are safe and respect existing laws and values. This includes transparency obligations, strict criteria for ‘high risk’ AI applications, and a provision for setting up a European Artificial Intelligence Board.
One might wonder, why the emphasis on explainability? As AI systems permeate critical sectors, from healthcare to finance, their decisions can profoundly impact individuals. An ‘explainable AI’ ensures that these decisions are not just accurate but also comprehensible to the average person. This empowers individuals, fostering trust in AI systems.
The Act, however, isn’t just about explainability. It recognizes the diverse applications of AI and categorizes them based on risk. For ‘high-risk’ applications, stringent requirements, from transparency to accuracy and security, are mandated. This stratified approach ensures that while innovation isn’t stifled, critical areas receive the scrutiny they warrant.
Economic Powerhouses: A Comparative Analysis
Any discussion on global transformation would be incomplete without examining the economic engines driving these changes. China’s astounding growth, with a GDP of $17.7 trillion by 2022^16, and its decade-long average annual growth rate of 6.5%, contrasts with the US’s $25.3 trillion GDP and a more conservative 2.3% growth rate^17. The European Union, showcasing resilience and integration, clocks a collective GDP nearing $22 trillion^18, with trade figures underscoring its global economic clout^19.
Conclusion: Europe’s Way Forward
Our world is in a state of flux, reminiscent of those transformative moments in history. From the monumental shifts of the Printing Revolution^2 to the divisive yet transformative Reformation^3, Europe has witnessed and shaped global trajectories. As it stands at the crossroads of another transformation, it draws from its rich historical tapestry, aiming to strike a balance between embracing the future and preserving its core values.
The digital future beckons, but it’s not without its challenges. Whether it’s the complex web of tech geopolitics or the imperative of sustainable growth, Europe’s journey forward will need to be both adaptive and principled. At the heart of this journey lies the potent combination of data and ethics. And as Europe strides into the future, it carries with it a clear message: progress, when rooted in ethics and driven by knowledge, can usher in an era that’s not just technologically advanced but also just, balanced, and peaceful.
Footnotes:
^1 Shakespeare, William. “Henry V.” Act IV, Scene 3. ^2 Eisenstein, Elizabeth L. “The Printing Revolution in Early Modern Europe.” Cambridge University Press, 1983. ^3 MacCulloch, Diarmaid. “Reformation: Europe’s House Divided 1490-1700.” Penguin UK, 2004. ^4 Ferguson, Niall. “The Square and the Tower: Networks and Power, from the Freemasons to Facebook.” Penguin, 2018. ^5 Kramer, Heinrich and Sprenger, James. “Malleus Maleficarum.” Dover Publications, 1971. ^6 Maddison, Angus. “Contours of the World Economy 1-2030 AD: Essays in Macro-Economic History.” Oxford University Press, 2007. ^7 Fuller, Douglas B. “Cutting off our nose to spite our face: US policy toward Huawei and Taiwan in the shadow of the Chinese tech challenge.” International Security 45.3 (2021): 52-89. ^8 Chappell, Bill. “ASML: The Obscure Dutch Company That’s Enabling Big Advances In Tech.” NPR, 2019. ^9 “The Economic Impact of a Taiwan Crisis.” Nikkei Asia, 2023. ^10 Casarini, Nicola. “The Rise of China and the Future of the Atlantic Alliance.” Oxford University Press, 2020. ^11 Lanteigne, Marc. “China’s Maritime Security and the ‘Malacca Dilemma’.” Asian Security 4.2 (2008): 143-161. ^12 “European Central Bank Annual Report.” 2023. ^13 Experian PLC. “Annual Report and Financial Statements.” 2023. ^14 Graff, Harvey J. “The Legacies of Literacy: Continuities and Contradictions in Western Culture and Society.” Indiana University Press, 1987. ^15 Khanna, Parag. “The Future is Asian: Commerce, Conflict, and Culture in the 21st Century.” Simon and Schuster, 2019. ^16 “World Bank Data: China.” 2022. ^17 “World Bank Data: United States.” 2022. ^18 “World Bank Data: European Union.” 2022. ^19 “European Commission Trade Statistics.” 2022.
About the author
Jochen Werne is CEO of Experian DACH. Large-scale global data powerhouses like Experian with it’s more than 20.000 data and analytics experts and a market cap of nearly €30bn have a pivotal role to play in this evolving narrative. As a global vanguard in data analytics, Experian is uniquely poised to offer financial institutions the insights and tools essential for navigating the multifaceted challenges of our times. In a world inundated with data, discerning patterns, understanding trends, and anticipating potential pitfalls will be the linchpin of success.
I had the distinct honor, alongside CCO Björn Hinrichs, to represent Experian DACH at the Gala event 2023. Our heartfelt gratitude goes to acatech for their warm invitation.
It’s clear that fostering a robust relationship between science and industry is paramount. The National Academy of Science and Engineering stands as a beacon, guiding and correcting, making technological innovation the cornerstone of transformation. This union of strong research, pioneering companies, and forward-thinking policies is the backbone of what acatech and countless others strive for. In this journey, while competition fuels our drive, it is cooperation that offers the platform for greatness.
In the infinite expanse of space, we are but astronauts on a tiny speck called Earth. Regardless of our political and geopolitical landscape, science and research must always be the bridge, the “Bridge over Troubled Water” that connects us and ensures progress, says Jan Wörner, President of acatech, wisely.
In reflecting on this, Germany’s Federal President Frank-Walter Steinmeier’s words resonate deeply: “I think we should base our perspective more on Max Frisch and trust ourselves as individuals and society alike to be able to shape the future. And that means developing perspectives, broadening our horizons and, yes, always daring to try something new. We need all this in the phase of upheaval we are in. Holding on to the past, ignoring change, refusing change, that is not an option – especially not in an open society like ours. But: We have to give change – that is the task of politics, business and science – a direction!”
Drawing from these profound insights and looking through the lens of our work at Experian DACH, the era we are entering can be aptly described as a new Age of Enlightenment, where data and therefore data literacy is paramount. As the Enlightenment thinker Voltaire astutely pointed out, “Judge a man by his questions rather than by his answers.” It’s a sentiment that is even more relevant today. Taking cues from Immanuel Kant’s wisdom, enlightenment is about emerging from our limitations. In the context of our time, achieving data literacy and harnessing data effectively signifies our evolution from technological naivety.
While AI stands as a monumental tool to decipher this data, its effectiveness lies in the quality of the data it is fed. It brings to the fore the urgent need for data literacy. An AI is only as good as its data. Thus, a distorted understanding could lead to distorted outputs. The onus is on us, leaders in data, to champion the responsible use of AI and advance the narrative on the symbiotic relationship between data and AI.
This new Enlightenment is our journey towards an era where society is mature and informed, utilizing the strength of data and AI for the betterment of all. Knowledge, in this context, isn’t just power but the foundation for positive societal transformation.
Concluding with my personal reflection, data isn’t merely a quantified entity; it’s a potent instrument to comprehend and address pressing challenges. Our collective aim should be to cultivate an understanding of data – its collection, utilization, and, importantly, its ethical application.
Our commitment at Experian DACH, backed by our ‘data for good’ principle, is to be at the forefront of this change, guiding, and contributing to this transformative journey.