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Embracing The Age of AI: Towards a Better Future

Better Future With AI

Introduction

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In the aftermath of COVID-19, the world has undergone a profound metamorphosis, reshaping the very fabric of our lives. Amidst this transformative era, our dependence on technology has surged, propelling us towards a future where AI plays an integral role in every aspect of our existence. This digital revolution is not merely altering our work habits and retirement plans; it is redefining the way we manage our homes, educate our children, and interact with the world around us. As we stand at the threshold of The Age of AI, it is imperative to recognize the profound impact this technology will have on every stage of our lifecycle.

The Intersection of Technology and Financial Reform

The goal of this article is to explore the remarkable opportunities that lie ahead as we reimagine the future for homeowners, millennials, and the workforce in The Age of AI. It is time to initiate long-overdue reforms in global pension systems and housing affordability, recognizing the interdependence between them.

These reforms are not a novel concept. In fact, as early as 2017, the International Monetary Fund (IMF) convened the New Economy Forum: Future of Work, acknowledging the need for change in the face of technological advancement. The Forum highlighted the following key areas of focus:

  1. Technological Innovations: The impact of technology on workplaces and labour markets.
  2. Socioeconomic Impact: Understanding the broader consequences of technological innovation.
  3. Skills and Education: Preparing for change and designing policies to ensure sustainable and inclusive prosperity.

The Urgent Need for Reforms

The IMF, in a 2012 report, emphasized the critical importance of addressing longevity risk. Longevity risk refers to the possibility that individuals may outlive their retirement savings, putting both consumers and pension providers at risk. This risk builds gradually over time and must be addressed promptly to protect our financial stability.

Furthermore, the housing sector, often overlooked by macroeconomists, was thrust into the spotlight during the Great Recession. Housing collapses can have catastrophic consequences for the global economy. The need for better risk management in the housing market was evident then and remains so today.

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The Consumer Centric Reforms:

  1.  Longevity Risk: In The Age of AI, the pandemic has revealed the potential of remote work and the ability to retire part-time, reducing the longevity risk associated with running out of retirement savings. To achieve this transformation: