February 11

New Technologies Have Historically Led to Increased Inequality—Not Anymore

By Rishad Premji

No matter how you measure it, inequality has been on the rise since the 1970s.

According to Inequality.org, the richest 1% now own 45% of the world’s wealth, while the Guardian reported that chief executives at FTSE 100 companies in 2017 earned 145 times more than an average worker, up from 47 times in 1998.

This concentration of wealth at the top has emerged as a potential source of conflict in modern society. With new technologies like artificial intelligence (AI), robotics and the internet of things (IoT) creating opportunities for growth, businesses are increasingly expected to contribute positively to the communities that surround them rather than just chasing profits and maximising returns for shareholders.

In this era, businesses need to have a clear purpose and act as responsible corporate citizens. Stakeholder capitalism is increasingly finding acceptance and is becoming the “right business thing to do.”

Photo courtesy of unerbul.

Source: Quartz India (link opens in a new window)

artificial intelligence, fintech, Internet of Things