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Artificial Intelligence – The Future of Business Operations




Ready or not, here it comes! Artificial intelligence (AI) is becoming an ever-present reality that no one should ignore. At first, there were warnings of the imminent danger of AI on the longevity of traditional jobs and occupations. But now, as the extent of the machine learning revolution becomes known, the attitude shifted toward acceptance.

Inevitably, with the advent of artificial intelligence, certain traditional jobs will go extinct. Businesses will be forced to change their systems to incorporate AI as a normal part of their production processes. This change or adaptation means retooling, reallocating human resources, and retraining staff. This process, however, costs money that few Jamaican businesses can afford.

So, is Jamaican businesses ready for artificial intelligence?

Artificial Intelligence is good for Business, Economy

What started out as warnings against the inevitable take over of human jobs by intelligent machines has now become pleas for the government to put in place policies and mechanisms to embrace AI. This attitude shift occurred within five years.

In 2018, then Minister of Science, Energy, and Technology Dr. Andrew Wheatley acknowledged that with more powerful technologies available, business process operations are transforming. Technologies including cloud computing, software and automation, and social media are increasingly used by businesses to reduce costs and accelerate growth.

Studies, including one cited by the Inter-American Development Bank (IDB) in a report this year, suggest that artificial intelligence will boost the economies of Latin America and the Caribbean.

Risks of Job Losses but AI is Inevitable

That study, done for the Institute for the Integration of Latin America and the Caribbean (INTAL), however, presented the risks of job losses in the region. Approximately 10 to 65 percent of the region’s labour force is at risk of losing jobs to AI. In the Latin American region alone, the estimated job loss is between 36 and 43 percent.

On the other hand, Jamaica, with its lower gross domestic product (GDP) and greater inequality is at higher risk of significant job losses.

Naturally, Jamaica cannot afford to reverse any gains it has achieved over the last five years in its employment numbers. Not when the mantra of the government is job creation, job creation, job creation! According to data from the Statistical Institute of Jamaica (STATIN), the country’s unemployment rate in January 2019 was an encouraging 8.0 percent (in April 2018 it was at 9.7 percent).

Closer examination of the sectors accounting for the growth in employment in Jamaica’s workforce points to the increase in jobs in the Business Process Outsourcing (BPO) sector. That is the explosion of “call center” jobs, particularly for young persons.

That said, the World Economic Forum and the IDB’s prediction that the global adaptation of advanced technology will create major labour market shifts as early as 2022 should be taken seriously by Jamaica’s government and the private sector. There is no question that the adaptation of artificial intelligence in business and other processes is inevitable.

More Funding Needed for the Sciences

Former Prime Minister, Bruce Golding in an address to the graduating class at Ardenne High School in 2018, cited the need for additional funding in science and technology fields. The need for more funding in these areas has been made many times before. Apparently, the desired level of funding has not materialized. Then again, student preferences remain fixed in traditional areas, rather than in the sciences.

Evidently, Jamaicans have a morbid fear of mathematics and the sciences. To get the typical student to embrace STEM subjects (Science, Technology, Engineering, Mathematics) seems like a tall order. Very few secondary and tertiary students excel in these subjects. Secondary students who managed to matriculate into tertiary education with maths and science subjects soon find the cost of completing their degrees rather daunting. Consequently, some students dropped out or switched their majors to survive.

While access to funding is a pressing concern for the development of science and technology in Jamaica, flaws in the education system and the quality of STEM subject teachers are to be addressed as well. In order to push Jamaica into the 21st century of technology, radical changes in the island’s educational system are, therefore, necessary.

New Occupations with Machine Learning

Jamaicans need to equip themselves to take advantage of the many opportunities created by the fusion of technologies. But this will be a tall order that requires a higher level of commitment for the long haul.  But as the saying goes, “delay is danger“.  The evolution of machine learning is moving to replace humans in certain functions. Such functions as customer service, retail, information and data processing, analysis, will become jobs for machines.

In its study,  Future of Jobs 2018,  the World Economic Forum suggests that machines programmed for pattern recognition and the ability to function without humans are on the horizon. At the same time, smart machines will replace humans in other jobs. One of its key findings, however, is that AI and other technologies will drive advances in automation and create new occupations. The study estimates that 75 million jobs worldwide may be displaced by the shift in the division of labour between machines and humans. Concurrently, 133 million new roles may emerge.

New Skills Required

Naturally, there will be changes in the kind of skills necessary to perform new functions in conjunction with machines. Indeed, digital technology will be vital in how industries adapt and change their processes worldwide. Fortunately, Jamaica ranks among the top 50 digital nations in the Thalons Services Globalisation Index for the adoption of innovation. Unfortunately, with its high percentage of unskilled labour, high poverty rates, and low GDP, Jamaica remains at a disadvantage. To emerge from this disadvantage, Jamaica must implement policies for productive development, innovation, and investment in human talent. An apt quote from Alvin Toffler illustrates the challenge Jamaica currently faces:

“The illiterate of the 21st century will not be those who cannot read and write, but rather will be those who cannot learn, unlearn and relearn” Alvin Toffler

The Jamaican education system is not yet prepared to accommodate the wholesale adoption of artificial intelligence as a norm. But, inevitably, for the nation’s survival, it needs to get there.

Peter Parchment is a highly trained professional with twelve (12) years senior executive experience in Policy Formulation, Monitoring & Evaluation, Strategic Planning in the Public Sector, and Social Research. A strategic thinker with strong problem-solving skills, people and resource management skills and the ability to think outside the box. Equipped with sound technical report writing and consultation facilitation skills and knowledgeable in the workings of Government and the Public Service. Experienced in working with rural and urban communities in a variety of locally and externally funded projects. He is also trained in Media and Communications and writes for online clients and publications. [email protected]

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    Emma Clark

    June 8, 2019 at 11:10 am

    Hello, Peter. Nice article!

    One of the most prominent new technologies of the 21st century is Artificial Intelligence. AI has evolved the industries on a vast level, and everyone is leveraging it to come up with the most appropriate solution to it. Artificial intelligence programming works on digital innovations and has made it possible for all business to have a new mindset. The market will become increasingly precise. I really love this post.

    Thank you so much for sharing such a valuable post.

  3. Pingback: Roundup: for the week ending 9 June 2019

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    Sagar Shah

    June 14, 2019 at 9:13 am

    AI is the emerging field of IT sector. There are many predictions about AI replacing humans. Maybe this is true somehow, but results produced by AI and ML will be the same as results produced by the human brain is a still crucial matter to think.

    AI has been started to apply in many business tasks like recruitment and HR tasks, payroll systems, and customer relationship management. It is proof that AI is the only future of business operations and missions.

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Bankers Urged to Remain Alert to Electronic Fraud




Bankers, you must remain aware of the different tools that mitigate attempts at electronic fraud. That is essentially the message from Jerome Smalling, Vice President of the Jamaica Bankers Association (JBA). He was speaking at the JBA’s seminar on anti-fraud held recently at the Terra Nova Hotel in Kingston. His warning comes against the background of the increased attempts by criminal elements at defrauding financial services institutions.

100 Seminar Participants Hear About e-Fraud Technologies

Over 100 persons participated in the anti-fraud seminar that was also held in association with the Jamaica Institute of Financial Services (JIFS). International and local experts covered topics including fraud trends, artificial intelligence, data protection, and the use of closed-circuit television images in preventing fraud. Participants got first-hand data and information on the capabilities of existing technology in perpetrating fraud.

Dirk Harrison, the Director of Prosecutions at the Integrity Commission, presented statistics reported by Transparency International that demonstrate the harmful effects of corruption on the progress of governance mechanisms.

Stay Ahead of Fraudsters – Dirk Harrison

Integrity Commission Jamaica

Harrison argued for a solution-oriented rather than a problem-oriented strategy to deal with fraud. “We must stay ahead of the fraudsters, who may ultimately be responsible for programming the same technology and machines on which we are to depend,” he said. Further, the Integrity Commission Director of Prosecutions emphasised how important it is to engage with the youth. He encouraged the seminar participants to reach out to the schools, youth clubs, and the cadet force to reinforce the message of “right and wrong,” and the consequences of choices.

Interestingly, Damian Small, the Director of Corporate Security at Scotiabank, argued that institutions must use a combination of strategies to effectively manage e-fraud. Such an approach, he explained, must be transparent and trustworthy for clients. Strategies must also create awareness on the different social engineering tactics that criminals use to collect data. Furthermore, fraud detection and prevention should also be objectives from an organisational perspective.

Law Enforcement Challenges and Weaknesses

But a report appearing in the media in 2018 highlighted major weaknesses in law-enforcement and the justice system in fighting fraud. Reportedly, in 2017, as electronic fraud spread, banks, and other financial institutions lost $750 million.

Also, the Jamaica Constabulary Force (JCF) data showed that between 2013 and 2018 the police Fraud Squad received reports on almost 3,400 alleged cases of fraud.

Unfortunately, the rate at which fraudsters are convicted in the island’s courts lags the arrest rate. Reportedly, the courts found only 115 persons guilty out of the 1,029 persons held for different rackets.  Even then, more than 50 percent of the convicted persons over the five years received their conviction only in 2017. Also, according to police data, between 2015 and 2016, the police Fraud Squad secured only three convictions for fraud.


Fraud Officers Sometimes Redeployed

Even arrests fall behind reports. During the five years to 2018, the police Fraud Squad received almost 2,000 fraud reports, but only arrested a little over 900 persons. Distressingly, the situation concerning arrests and convictions for electronic fraud is much worse.

The bottom line is that the Duke Street-based police Fraud Squad is woefully understaffed and under-resourced. Up to 2018, the police Fraud Squad had fewer than a dozen investigators assigned to tackle fraud islandwide. Even with this shortfall, the police high command sometimes redeploys these officers to other duties including Zones of Special Operations (ZOSOs) and the State of Emergency (SOE) in Western Jamaica.

Official Ambivalence Regarding e-Fraud

Interestingly, Lloyd Parchment, an anti-fraud expert at the Jamaica Bankers’ Association, suggested that official ambivalence regarding the crime of fraud contributed to the low conviction rate experienced in Jamaica. For one thing, many see fraud, particularly that against institutions like banks, as a victim-less, white-collar crime.

Parchment suggested that:

 “The justice system does not recognise fraud as a very important area of criminal activity; they do not treat it seriously.”

He further explained that the banking sector has urged the justice system to acknowledge fraud as a serious criminal offence. He also noted that the money gained from it is also fuelling more serious illegal activity. According to the JBA anti-fraud expert, banking sector leaders received only a lukewarm response from the justice ministry when they attempted dialogue on the matter of fraud.

Banks Choose Not to Report Fraud

Consequently, financial industry leaders are not so confident that investigations into the reported e-fraud cases will yield serious results. Furthermore, banks, in some cases, chose not to report fraud incidents to the police Fraud Squad as they do not see the point of doing so. Also, the substantial backlog of reported fraud cases investigated by the Fraud Squad is another disincentive for institutional victims of electronic fraud to report or follow up on fraud matters.

Parchment offered an example of what happened in a recent fraud incident:

“We had a guy recently who reaped millions of dollars in fraudulent funds from the banking industry through debit card frauds, and when we managed to engineer his arrest, and he was brought to court, he immediately pleaded guilty. He was slapped with a $200,000 fine. He then went and stole the money from a customer’s account to pay the fine. It didn’t even come out of his pocket, and he is back working the next day and continues to work right now. I have the evidence of that because we have the camera system.”

Optimistic Outlook

Participants in the recently held JBA/JIFS anti-fraud seminar got an earful on the scale of electronic fraud and the kinds of technology criminals use. Not only did presenters offer their experiences on the various ways financial institutions suffer at the hands of unscrupulous fraudsters, but they also got useful tips on how to address this growing problem.

The existing law enforcement weaknesses and challenges in the justice system, however, threaten any success in addressing the e-fraud monster.

But as an adage goes, “where there is life, there is hope”.

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BOJ Clinches Deal with Bloomberg To Allow Local FX Traders on Platform




The Bank of Jamaica (BOJ) has clinched a deal with Bloomberg (USA) to access its advertising and trading platform.  BOJ’s arrangement with the international financial and media services provider will enable FX dealers to place Foreign Exchange rates on the Bloomberg platform in local and US currencies. Other dealers will then see them in real time.

The Deal with Bloomberg for B-Match Platform

John Robinson, BOJ’s Senior Deputy Governor announced the deal. He further disclosed that the deal with Bloomberg is an interim strategy. Dealers will, however, be able to use the Bloomberg trading platform come July 1, 2019. While this arrangement with Bloomberg is temporary, the BOJ expects to launch its own comprehensive trading platform in early 2020.

Robinson, in a media interview, further stated that Bloomberg is currently testing its B-Match model. That model enables dealers to trade among themselves. Bloomberg’s B-Match model is a data-driven service that offers information on clients so advertisers may present targeted opportunities. Bloomberg offers the same service to financial entities, such as FX dealers. They will be able to use specified information to match the FX needs of other Foreign Exchange dealers and entities.

Dealers Signing Up

Reportedly, traders and large buyers have already signed on to the Bloomberg platform. They have the advantage of seeing the rates at which other banks and institutions are selling the US dollars. These traders and buyers can see this information through a special terminal linked to the central clearinghouse system operated by the Bank of Jamaica. The BOJ official noted that it is necessary for dealers to have access to the Bloomberg terminal. This access will effectively allow them to work with their large clients who need foreign exchange from time to time.

As described by BOJ’s Deputy Governor Robinson using an example, “say JPS, which want to buy US$1 million, you can come onto the system and see who is selling and for what price, and you can buy through your dealer who will process the transaction using the Bloomberg B-Match model”.

However, in accordance with the deal with Bloomberg, the BOJ must pay a fee of US$2,000 per month for accessing the platform.

BOJ’s Comprehensive FX Trading Platform in the Works

Responding to a question on whether the BOJ would have a supervisory role in the Bloomberg B-Match system, Robinson indicated that the BOJ will coordinate rather than supervise the use of that platform. Each dealer will have his or her own terminal. The BOJ will, however, “shepherd them into sharing all this information”, Robinson explained.

Also, the BOJ’s comprehensive FX platform is still a work in progress. However, it will, in addition to the Bloomberg B-Match system, allow foreign exchange buyers to register and see the FX rates offered by each bank. FX buyers will then get the best price.

Bloomberg, a major provider of round the clock financial information and news, offers a professional analysis of financial data and news, as well as the analytical tools that financial professionals can use. The Bloomberg Terminal is one of its key income streams that is an integrated platform for streaming price data, trading information, news, and financial analysis to more than 300,000 customers globally.

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Sagicor Investments Jamaica Limited to Raise $4 Billion Through IPO




Sagicor Financial

Another IPO is on the horizon. This time, it is the Sagicor Investments Jamaica Limited that is seeking to raise around $4 billion through an initial public offering. Sagicor Investments is offering shares in the Sagicor Select Funds Limited, which is a fund pool consisting of financial stocks that are listed on the Jamaica Stock Exchange. The public offer will open on July 3 and close on July 17, 2019.

Sagicor Investments Jamaica Limited Offers 2.5 billion Stocks

Investors can purchase a total of 2.5 billion stock units at a price of $1.00 per unit. Also, they have the choice to purchase from an additional pool of 1.5 billion stock units should Sagicor Investments Limited choose to upsize the IPO.

The Sagicor IPO consists of shares in two classes – Class A shares offered to Sagicor Investment Limited clients and Class B shares offered to members of the public who subscribe to this initial public offer. The prospectus from Sagicor Investments Limited stated that the company was structured as a passive equity fund with separate classes of shares listed as a Financial Select Fund.

JSE Financial Index Grows 18%

Presently, the Financial Select Fund has invested $1.1 billion in 11 of the 23 financial stocks that constitute the Jamaica Stock Exchange Financial Index. The funds raised from this IPO will go toward acquiring more financial stocks. Sagicor Investments Limited aims to match the financial securities that constitute the JSE Financial Index as closely as possible.

With the Financial Select Fund, investors can track the Index’s value, the net asset value (NAV) of the Fund, and its market value daily. Such information is published on the Jamaica Stock Exchange website and will be published by the Sagicor Investment Jamaica Limited.

On March 1, 2019, the Jamaica Stock Exchange (JSE) launched the JSE Financial Index. This Index consists of insurance companies, financial and microfinancing companies that are trading on the main and junior markets. On Thursday, June 20, 2019, the JSE Financial Index closed at 118 points, which represents an 18.25 percent growth since it was debuted.

While Sagicor leads the unit trust market with its Sigma branded unit trust packages, its Financial Select Fund focuses on a specific sector (financial). So, investors have the choice of specialising in a sector without suffering the accompanying concentration risk.

Why Buy into an IPO?

Investing in shares offered through an initial public offering is like entering an opportunity on the ground floor. Through this strategy, the investor benefits from significant gains once the shares hit the stock exchange. Once the IPO shares are listed on the stock exchange, it’s all systems go as the normal trading takes effect.

A quick look at the performance of some of the investment opportunities offered through IPOs from 2018 to date shows strong gains in price since they were offered to investors.

Look at this table below:

Table 1: Performance of Companies Offered through IPOs from 2018 to Date

Company Symbol Date of IPO IPO Price Closing Price June 20, 2019 % Change
Elite Diagnostic ELITE Feb. 2018 2.00 3.95 98%
Everything Fresh Limited EFRESH May 2018 2.50 1.49 -40%
Fontana Limited FTNA Dec. 2018 1.88 4.43 136%
iCreate Limited Ordinary Shares iCreate Jan / Feb, 2019 1.01 0.8 -21%
Indies Pharma Ordinary Shares INDIES July 2018 1.50 3.21 114%
Mayberry Jamaica Equities MJE July 2018 7.56 11.31 50%
Sygnus Credit Investments Limited JMD Ordinary Shares SCIJMD May 2018 13.72 13.39 -2%
Wigton Windfarm WIG April 2019 0.50 0.84 68%


So, as you consider whether to buy into this latest IPO, read the prospectus and talk with your broker or financial advisor.


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