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Think20 Says Artificial Intelligence (AI) Based Learning Technologies Can Overcome Current Educational Challenges

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G20’s think tank group warns missing generation’s skill gap must be addressed for sustained economic growth in a post COVID-19 era

A task force of the G20 research and policy advice network, Think20 (T20), has identified artificial intelligence (AI) based learning technologies as the recommended approach to overcoming current educational challenges and ensuring existing and future employees are prepared to be a member of the workforce of today and tomorrow.

With economies reeling from the repercussions of COVID-19, T20 research has highlighted it is not only the transition from education to employment that must be reformed, but also that the skills of those already within employment that no longer meet evolving market requirements. Recommendations laid out within twelve research-based T20 Policy Briefs outline how G20 member countries can address their individual challenges to ensure economies can recover and achieve sustained growth, as the increased use of AI changes the employment landscape in the digital age.

As a viable solution to the generational skills gap, Task Force 6 (TF6) outlines four key recommendations G20 member countries can adopt to utilise AI-based learning, including embracing and regulating industry micro-credentials; government funding for workplace learning in traditional sectors and those working within the platform and gig economies; the promotion of immersive, interactive AI for skills development as a learning aid and not in replacement of teachers; and the promotion of innovative technical and vocational education training (TVET) institutions with the backing of quality control and licensing bodies.

When discussing the immediate need for reforms, Heidi Alaskary, visiting senior research fellow, KFCRIS and lead co-chair of TF6, said: “The policies TF6 has chosen to focus on will have a direct impact on how we, as an international community, shape our immediate future. It is evident we are on the cusp of a significant global change and areas of reform, such as the reliance on AI, have shifted from being interesting concepts to becoming critical conversations that require urgent attention. COVID-19 has accelerated those issues that were already prevalent, revealing the varying skill gaps across all generations. The older, missing generation of over 35s would traditionally gain skills in one speciality area, with many people remaining on the same career path for life. It is this generation that must develop the agility to diversify their knowledge base and embrace data analysis if we are to ensure no-one is left behind.

“The youth generation, on the other hand, will have, on average, twelve discreet job roles throughout their lifetime. While they are technically savvy and well-versed in many of the skills future economies will require, they often lack the required resilience and soft skills the older generations have. It is now the responsibility of governments, industries and citizens to collaborate to humanise the technological process and bring balance to the future way of working.”

Paul Grainger, co-director for the Centre for Educations and Work; Enterprise Lead for the Department of Education, Practice and Society at UCL Institute of Education; and co-chair of TF6 added: “The rapid technological migration businesses have been forced to undertake during 2020 has highlighted the skill gap among over 35s and the need to balance education reform between the youth population and the missing generation of adults whose jobs are being replaced by technology. Pre-COVID-19, the fourth industrial revolution was already rebalancing employment away from repetitive manual work, in favour of automated, AI-supported roles. Examples of this include robots replacing hospital porters, self-checkout systems in supermarkets and the high street, and online delivery reducing the demand for shop assistants, ultimately resulting in job losses.”

The Organisation for Economic Co-operation and Development estimates global unemployment rates in May stood at 8.4 per cent and could reach 9.4 per cent by the end of 2020 as a result of COVID-19. According to the International Labour Organization (ILO), the virus could cause the equivalent of 195 million job losses. T20 predicts those economies heavily reliant on traditional service industries, such as retail and wholesale, food and accommodation, business services and administration, and manufacturing, which together add up to 37.5 per cent of global employment, will be most negatively impacted. Those dependent on manufacturing, however, will feel less of an impact compared to the other ILO-listed sectors as the demand for goods is still high. It is, however, not clear how extraction economies relying on mining and natural resources will perform as, for example, reduced travel has seen a decline in oil demand. The ILO also warns agriculture, the largest sector in most developing countries, is at risk owing to containment measures and risks of food insecurity are emerging.

Various AI-learning modes were identified by TF6 to bridge the gap and begin to reskill and upskill those across both demographics. Passive, program-based learning is not recommended for those looking to challenge the learner’s powers of concentration. While this method is cost-effective, it has been ranked by TF6 as the least effective. For educational institutions and businesses looking to fully embrace AI and provide the learner with a richer educational experience, a hybrid of human interaction and bespoke digital platform learning are optimal.

Discussing how the varying learning modes can be adopted, Grainger said: “Adapting in a society where human proximity is dangerous but where social interaction is still the preferred method of training and learning is a universal challenge. However, each country must work to identify and implement a solution that works for them, or they risk economic suffering in the long term. Whether skills are taught directly, funded by the government, or indirectly funded by the sectors themselves, will vary. For many, a blended approach is likely the way forward. For example, migrating university lectures online while still conducting seminars in-person, to ensure students are receiving the social interaction they require during the learning process, reduces the danger of COVID-19 transmission by 50 per cent.

“For all generations, the secret to educating the unwilling is to make it a social act, and whether this is in person or via an immersive digital infrastructure will differ from country to country. However, the danger still prevails that if we don’t address the youth skill gap now, many countries will find themselves falling behind international growth figures as the nature of education and training has a direct impact on a country’s economy.”

TF6 concludes that while cost implications will continue to be a barrier for success for many, a challenge exacerbated by the economic implications of COVID-19, the only way in which countries can affect any long-lasting, significant changes and move comfortably into the future of work is with unified, global cooperation on minimum standards within technical and vocational training.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Drop Sharply, Marking Steepest Weekly Decline in Three Months

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Amidst concerns over weak U.S. jobs data and the potential timing of a Federal Reserve interest rate cut, oil prices record its sharpest weekly decline in three months.

Brent crude oil, against which Nigerian oil is priced, settled 71 cents lower to close at $82.96 a barrel.

Similarly, U.S. West Texas Intermediate crude oil fell 84 cents, or 1.06% to end the week at $78.11 a barrel.

The primary driver behind this decline was investor apprehension regarding the impact of sustained borrowing costs on the U.S. economy, the world’s foremost oil consumer. These concerns were amplified after the Federal Reserve opted to maintain interest rates at their current levels this week.

Throughout the week, Brent experienced a decline of over 7%, while WTI dropped by 6.8%.

The slowdown in U.S. job growth, revealed in April’s data, coupled with a cooling annual wage gain, intensified expectations among traders for a potential interest rate cut by the U.S. central bank.

Tim Snyder, an economist at Matador Economics, noted that while the economy is experiencing a slight deceleration, the data presents a pathway for the Fed to enact at least one rate cut this year.

The Fed’s decision to keep rates unchanged this week, despite acknowledging elevated inflation levels, has prompted a reassessment of the anticipated timing for potential rate cuts, according to Giovanni Staunovo, an analyst at UBS.

Higher interest rates typically exert downward pressure on economic activity and can dampen oil demand.

Also, U.S. energy companies reduced the number of oil and natural gas rigs for the second consecutive week, reaching the lowest count since January 2022, as reported by Baker Hughes.

The oil and gas rig count fell by eight to 605, with the number of oil rigs dropping by seven to 499, the most significant weekly decline since November 2023.

Meanwhile, geopolitical tensions surrounding the Israel-Hamas conflict have somewhat eased as discussions for a temporary ceasefire progress with international mediators.

Looking ahead, the next meeting of OPEC+ oil producers is scheduled for June 1, where the group may consider extending voluntary oil output cuts beyond June if global oil demand fails to pick up.

In light of these developments, money managers reduced their net long U.S. crude futures and options positions in the week leading up to April 30, according to the U.S. Commodity Futures Trading Commission (CFTC).

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Crude Oil

Oil Prices Rebound After Three Days of Losses

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After enduring a three-day decline, oil prices recovered on Thursday, offering a glimmer of hope to investors amid a volatile market landscape.

The rebound was fueled by a combination of factors ranging from geopolitical developments to supply concerns.

Brent crude oil, against which Nigeria oil is priced, surged by 79 cents, or 0.95% to $84.23 a barrel while U.S. West Texas Intermediate (WTI) crude climbed 69 cents, or 0.87% to $79.69 per barrel.

This turnaround came on the heels of a significant downturn that had pushed prices to their lowest levels since mid-March.

The recent slump in oil prices was primarily attributed to a confluence of factors, including the U.S. Federal Reserve’s decision to maintain interest rates and concerns surrounding stubborn inflation, which could potentially dampen economic growth and limit oil demand.

Also, unexpected data from the Energy Information Administration (EIA) revealing a substantial increase in U.S. crude inventories added further pressure on oil prices.

“The updated inventory statistics were probably the most salient price driver over the course of yesterday’s trading session,” said Tamas Varga, an analyst at PVM.

Crude inventories surged by 7.3 million barrels to 460.9 million barrels, significantly exceeding analysts’ expectations and casting a shadow over market sentiment.

However, the tide began to turn as ceasefire talks between Israel and Hamas gained traction, offering a glimmer of hope for stability in the volatile Middle East region.

The prospect of a ceasefire agreement, spearheaded by Egypt, injected optimism into the market, offsetting concerns surrounding geopolitical tensions.

“As the impact of the U.S. crude stock build and the Fed signaling higher-for-longer rates is close to being fully baked in, attention will turn towards the outcome of the Gaza talks,” noted Vandana Hari, founder of Vanda Insights.

The potential for a resolution in the Israel-Hamas conflict provided a ray of hope, contributing to the positive momentum in oil markets.

Despite the optimism surrounding ceasefire talks, tensions in the Middle East remain palpable, with Israeli Prime Minister Benjamin Netanyahu reiterating plans for a military offensive in the southern Gaza city of Rafah.

The precarious geopolitical climate continues to underpin volatility in oil markets, reminding investors of the inherent risks associated with the commodity.

In addition to geopolitical developments, speculation regarding U.S. government buying for strategic reserves added further support to oil prices.

With the U.S. expressing intentions to replenish the Strategic Petroleum Reserve (SPR) at prices below $79 a barrel, market participants closely monitored price movements, anticipating potential intervention to stabilize prices.

“The oil market was supported by speculation that if WTI falls below $79, the U.S. will move to build up its strategic reserves,” highlighted Hiroyuki Kikukawa, president of NS Trading, owned by Nissan Securities.

As oil markets navigate a complex web of geopolitical uncertainties and supply dynamics, the recent rebound underscores the resilience of the commodity in the face of adversity.

While challenges persist, the renewed optimism offers a ray of hope for stability and growth in the oil sector, providing investors with a semblance of confidence amidst a volatile landscape.

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Gold

Gold Soars as Fed Signals Patience

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Gold emerged as a star performer as the Federal Reserve adopted a more patient stance, sending the precious metal soaring to new heights.

Amidst a backdrop of uncertainty, gold’s ascent mirrored investors’ appetite for safe-haven assets and reflected their interpretation of the central bank’s cautious approach.

Following the Fed’s decision to maintain interest rates at their current levels, gold prices surged toward $2,330 an ounce in early Asian trade, building on a 1.5% gain from the previous session – the most significant one-day increase since mid-April.

The dovish tone struck by Fed Chair Jerome Powell during the announcement provided the impetus for gold’s rally, as he downplayed the prospects of imminent rate hikes while underscoring the need for further evidence of cooling inflation before considering adjustments to borrowing costs.

This tempered outlook from the Fed, which emphasized patience and data dependence, bolstered gold’s appeal as a hedge against inflation and economic uncertainty.

Investors interpreted the central bank’s stance as a signal of continued support for accommodative monetary policies, providing a tailwind for the precious metal.

Simultaneously, the Japanese yen surged more than 3% against the dollar, sparking speculation of intervention by Japanese authorities to support the currency.

This move further weakened the dollar, enhancing the attractiveness of gold to investors seeking refuge from currency volatility.

Gold’s ascent in recent months has been underpinned by a confluence of factors, including robust central bank purchases, strong demand from Asian markets – particularly China – and geopolitical tensions ranging from conflicts in Ukraine to instability in the Middle East.

These dynamics have propelled gold’s price upwards by approximately 13% this year, culminating in a record high last month.

At 9:07 a.m. in Singapore, spot gold was up 0.3% to $2,326.03 an ounce, with silver also experiencing gains as it rose towards $27 an ounce.

The Bloomberg Dollar Spot Index concurrently fell by 0.3%, further underscoring the inverse relationship between the dollar’s strength and gold’s allure.

However, amidst the fervor surrounding gold’s surge, palladium found itself trading below platinum after dipping below its sister metal for the first time since February.

The erosion of palladium’s long-standing premium was attributed to a pessimistic outlook for demand in gasoline-powered cars, highlighting the nuanced dynamics within the precious metals market.

As gold continues its upward trajectory, investors remain attuned to evolving macroeconomic indicators and central bank policy shifts, navigating a landscape defined by uncertainty and volatility.

In this environment, the allure of gold as a safe-haven asset is likely to endure, providing solace to investors seeking stability amidst turbulent times.

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