Latest news with #UniversityofAucklandBusinessSchool
Scoop
20 hours ago
- Business
- Scoop
Economists Urge Action To Prevent ‘AI Poverty Traps'
Press Release – University of Auckland The economists argue that in developing AI policies, the international community must learn from the successes and failures of foreign aid. Artificial intelligence could deepen inequality and create 'AI-poverty traps' in developing nations, write economists Dr Asha Sundaram and Dr Dennis Wesselbaum in their paper 'Economic development reloaded: the AI revolution in developing nations'. Sundaram, an associate professor at the University of Auckland Business School, and Wesselbaum, an associate professor at the University of Otago, say developing countries lack the necessary infrastructure and skilled labour force to capitalise on AI's potential. 'The downside is that there isn't a lot of capacity in some countries in terms of digital infrastructure, internet, mobile phone penetration,' says Sundaram. 'Much of the technology is controlled by firms like Google and OpenAI, raising the risk of over-reliance on foreign tech, potentially stifling local innovation.' Without strategic interventions, Wesselbaum says AI may create an 'AI-poverty trap': locking developing nations into technological dependence and widening the gap between global economies. 'For developing countries, AI could be a game-changer; boosting productivity, expanding access to essential services, and fostering local innovation – if the right infrastructure and skills are in place.' Financial support from developed countries and international bodies like the UN could help cover upfront costs through grants, loans and investment incentives, according to the research. 'We also need robust legal and regulatory frameworks to support responsible AI by addressing data privacy, ethics, and transparency concerns,' says Sundaram. The economists argue that in developing AI policies, the international community must learn from the successes and failures of foreign aid. 'Aid has often failed to spur lasting growth in developing countries,' says Sundaram, 'partly because it can create dependency, reducing self-reliance and domestic initiatives.' She highlights a need for policies to mitigate the downsides of AI, both in developed and developing countries. Such policies could include an international tax regime that would allow countries to capture tax revenue from economic activities driven by AI inside their borders. Sundaram's involved in one such project in Ethiopia where artificial intelligence is being harnessed by the government and the country's largest telecom provider to support small businesses excluded from formal banking due to lack of collateral. By analysing mobile money transactions and how much these businesses pay and receive, algorithms estimate how much credit can safely be offered, enabling small loans and helping integrate marginalised enterprises into the formal economy. Artificial intelligence holds the power to transform development trajectories, but without targeted investments and inclusive policies, says Wesselbaum, it risks deepening the digital divide and entrenching global inequality.
Scoop
21 hours ago
- Business
- Scoop
Economists Urge Action To Prevent ‘AI Poverty Traps'
Artificial intelligence could deepen inequality and create 'AI-poverty traps' in developing nations, write economists Dr Asha Sundaram and Dr Dennis Wesselbaum in their paper 'Economic development reloaded: the AI revolution in developing nations'. Sundaram, an associate professor at the University of Auckland Business School, and Wesselbaum, an associate professor at the University of Otago, say developing countries lack the necessary infrastructure and skilled labour force to capitalise on AI's potential. "The downside is that there isn't a lot of capacity in some countries in terms of digital infrastructure, internet, mobile phone penetration," says Sundaram. "Much of the technology is controlled by firms like Google and OpenAI, raising the risk of over-reliance on foreign tech, potentially stifling local innovation." Without strategic interventions, Wesselbaum says AI may create an 'AI-poverty trap': locking developing nations into technological dependence and widening the gap between global economies. 'For developing countries, AI could be a game-changer; boosting productivity, expanding access to essential services, and fostering local innovation – if the right infrastructure and skills are in place.' Financial support from developed countries and international bodies like the UN could help cover upfront costs through grants, loans and investment incentives, according to the research. 'We also need robust legal and regulatory frameworks to support responsible AI by addressing data privacy, ethics, and transparency concerns,' says Sundaram. The economists argue that in developing AI policies, the international community must learn from the successes and failures of foreign aid. "Aid has often failed to spur lasting growth in developing countries,' says Sundaram, 'partly because it can create dependency, reducing self-reliance and domestic initiatives." She highlights a need for policies to mitigate the downsides of AI, both in developed and developing countries. Such policies could include an international tax regime that would allow countries to capture tax revenue from economic activities driven by AI inside their borders. Sundaram's involved in one such project in Ethiopia where artificial intelligence is being harnessed by the government and the country's largest telecom provider to support small businesses excluded from formal banking due to lack of collateral. By analysing mobile money transactions and how much these businesses pay and receive, algorithms estimate how much credit can safely be offered, enabling small loans and helping integrate marginalised enterprises into the formal economy. Artificial intelligence holds the power to transform development trajectories, but without targeted investments and inclusive policies, says Wesselbaum, it risks deepening the digital divide and entrenching global inequality.
Scoop
20-05-2025
- Business
- Scoop
How Can Finance Be Harnessed For Good?
Press Release – University of Auckland A panel of academic and industry experts will explore how finance can be harnessed for good at Trust in Finance and the Rise of Fintech, an event hosted by University of Auckland research centre Juncture: Dialogues on Inclusive Capitalism at the Business School on Thursday, 22 May. Attendees will hear a range of perspectives from five panellists on topics including socially responsible investing, cybersecurity, digital inclusion, trust in finance, and the role of regulation in building fairer financial systems. Fintech, or financial technology, includes everything from cryptocurrencies and retail investing apps to peer-to-peer lending and open banking. While these innovations promise greater access and efficiency, they also raise concerns around bias, exclusion and data privacy. Panellist Dr Chanelle Duley, a lecturer in economics at the University of Auckland Business School, says cybersecurity and data governance are central to financial trust. 'For the benefits of innovations in finance, including open banking, retail investing, and decentralised finance to be fully harnessed, fintech platforms need to invest heavily in cybersecurity infrastructure.' Also on the panel is the co-CEO of Tax Traders, Becki Butler. She says inclusive finance isn't about building one-size-fits-all products; 'it's about flexible, culturally aware, human-centred design that meets people where they are'. 'True inclusion means designing alongside communities, not for them. If we simply digitise the same rules, assumptions and risk models that have historically excluded people, we'll only replicate those failures at speed and scale.' Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School says harnessing finance for good can come with complications. 'Sometimes, the people or communities receiving money today may never be in a position to pay it back, often due to structural issues like persistent poverty, inequality, or systemic barriers to economic advancement. 'Additionally, in certain situations, providing funds today might serve as a way to correct past injustices, such as colonial expropriation, where wealth was systematically removed from particular communities. Here, the financial relationship might be less about traditional lending expecting repayment, and more about restorative or reparative finance, acknowledging and addressing historical wrongs.' If these structural issues are tackled carefully, such as through investments in education, healthcare, infrastructure, or supporting entrepreneurship in marginalised communities, Rau says there can be significant long-term benefits. The panel discussion, facilitated by associate director strategic engagement for Juncture: Dialogues on Inclusive Capitalism, Dr Drew Franklin, also includes Christopher Swasbrook, founder of Elevation Capital and current board member of the Financial Markets Authority, and Decio Nascimento, founder and chief investment officer of Norbury Partners. Christopher and Decio bring global market insight and hands-on investment experience to the discussion, which will span innovation, inclusion, and regulatory responsibility in shaping the future of finance.
Scoop
20-05-2025
- Business
- Scoop
How Can Finance Be Harnessed For Good?
Press Release – University of Auckland Panellist Dr Chanelle Duley, a lecturer in economics at the University of Auckland Business School, says cybersecurity and data governance are central to financial trust. A panel of academic and industry experts will explore how finance can be harnessed for good at Trust in Finance and the Rise of Fintech, an event hosted by University of Auckland research centre Juncture: Dialogues on Inclusive Capitalism at the Business School on Thursday, 22 May. Attendees will hear a range of perspectives from five panellists on topics including socially responsible investing, cybersecurity, digital inclusion, trust in finance, and the role of regulation in building fairer financial systems. Fintech, or financial technology, includes everything from cryptocurrencies and retail investing apps to peer-to-peer lending and open banking. While these innovations promise greater access and efficiency, they also raise concerns around bias, exclusion and data privacy. Panellist Dr Chanelle Duley, a lecturer in economics at the University of Auckland Business School, says cybersecurity and data governance are central to financial trust. 'For the benefits of innovations in finance, including open banking, retail investing, and decentralised finance to be fully harnessed, fintech platforms need to invest heavily in cybersecurity infrastructure.' Also on the panel is the co-CEO of Tax Traders, Becki Butler. She says inclusive finance isn't about building one-size-fits-all products; 'it's about flexible, culturally aware, human-centred design that meets people where they are'. 'True inclusion means designing alongside communities, not for them. If we simply digitise the same rules, assumptions and risk models that have historically excluded people, we'll only replicate those failures at speed and scale.' Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School says harnessing finance for good can come with complications. 'Sometimes, the people or communities receiving money today may never be in a position to pay it back, often due to structural issues like persistent poverty, inequality, or systemic barriers to economic advancement. 'Additionally, in certain situations, providing funds today might serve as a way to correct past injustices, such as colonial expropriation, where wealth was systematically removed from particular communities. Here, the financial relationship might be less about traditional lending expecting repayment, and more about restorative or reparative finance, acknowledging and addressing historical wrongs.' If these structural issues are tackled carefully, such as through investments in education, healthcare, infrastructure, or supporting entrepreneurship in marginalised communities, Rau says there can be significant long-term benefits. The panel discussion, facilitated by associate director strategic engagement for Juncture: Dialogues on Inclusive Capitalism, Dr Drew Franklin, also includes Christopher Swasbrook, founder of Elevation Capital and current board member of the Financial Markets Authority, and Decio Nascimento, founder and chief investment officer of Norbury Partners. Christopher and Decio bring global market insight and hands-on investment experience to the discussion, which will span innovation, inclusion, and regulatory responsibility in shaping the future of finance.
Scoop
20-05-2025
- Business
- Scoop
How Can Finance Be Harnessed For Good?
A panel of academic and industry experts will explore how finance can be harnessed for good at Trust in Finance and the Rise of Fintech, an event hosted by University of Auckland research centre Juncture: Dialogues on Inclusive Capitalism at the Business School on Thursday, 22 May. Attendees will hear a range of perspectives from five panellists on topics including socially responsible investing, cybersecurity, digital inclusion, trust in finance, and the role of regulation in building fairer financial systems. Fintech, or financial technology, includes everything from cryptocurrencies and retail investing apps to peer-to-peer lending and open banking. While these innovations promise greater access and efficiency, they also raise concerns around bias, exclusion and data privacy. Panellist Dr Chanelle Duley, a lecturer in economics at the University of Auckland Business School, says cybersecurity and data governance are central to financial trust. 'For the benefits of innovations in finance, including open banking, retail investing, and decentralised finance to be fully harnessed, fintech platforms need to invest heavily in cybersecurity infrastructure.' Also on the panel is the co-CEO of Tax Traders, Becki Butler. She says inclusive finance isn't about building one-size-fits-all products; 'it's about flexible, culturally aware, human-centred design that meets people where they are'. 'True inclusion means designing alongside communities, not for them. If we simply digitise the same rules, assumptions and risk models that have historically excluded people, we'll only replicate those failures at speed and scale.' Professor Raghavendra Rau, Sir Evelyn de Rothschild Professor of Finance at Cambridge Judge Business School says harnessing finance for good can come with complications. 'Sometimes, the people or communities receiving money today may never be in a position to pay it back, often due to structural issues like persistent poverty, inequality, or systemic barriers to economic advancement. 'Additionally, in certain situations, providing funds today might serve as a way to correct past injustices, such as colonial expropriation, where wealth was systematically removed from particular communities. Here, the financial relationship might be less about traditional lending expecting repayment, and more about restorative or reparative finance, acknowledging and addressing historical wrongs.' If these structural issues are tackled carefully, such as through investments in education, healthcare, infrastructure, or supporting entrepreneurship in marginalised communities, Rau says there can be significant long-term benefits. The panel discussion, facilitated by associate director strategic engagement for Juncture: Dialogues on Inclusive Capitalism, Dr Drew Franklin, also includes Christopher Swasbrook, founder of Elevation Capital and current board member of the Financial Markets Authority, and Decio Nascimento, founder and chief investment officer of Norbury Partners. Christopher and Decio bring global market insight and hands-on investment experience to the discussion, which will span innovation, inclusion, and regulatory responsibility in shaping the future of finance.
