CBC

Another busy week on the CBC News Network Weekend Business Panel, alongside Mark Warner, Michael Hyatt, and Natalie Kalata, talking concerns about artificial intelligence, Air Canada pilots taking early steps to negotiate their next labour agreement, and BMO’s acquisition of Air Miles.  You can watch our segment here.  Some thoughts on our discussion.

Various science, academic, and technology leaders issued a warning about artificial intelligence (AI) and its potential to harm humankind with the following statement: “mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war”.  This has resulted in discussion about how AI could harm the public (such as through disinformation and privacy issues) and has raised questions about what should be done.  In general terms, it stands to reason that since parties/companies that develop and commercialize products (including technologies) tend to benefit financially (sometimes, quite significantly), they should also play a role in addressing any negative impacts.  This is analogous to issues such as pollution and the downside of social media, for example, something that has been unaddressed for too long.  It is not sufficient to engage solely in “finger pointing”, typically at government, for an ineffective regulatory environment (or none at all); rather, industry has a key role to play in identifying, assessing, managing, and mitigating risks, given that they have the expertise to do so.  Further, no one benefits from an industry that causes significant harm and there is a responsibility to ensure that this doesn’t occur.

As Air Canada’s pilots opt to pull out of the existing labour agreement early to commence the bargaining process (perhaps, in the Summer of 2023, with the current contract set to expire this September), travelers are likely on edge, particularly given the fallout from the recent near-strike at Westjet.  The unfortunate truth is that Canadian travelers are in a less than ideal position, given the very limited airline options in this country.  Speaking as one of the many travelers impacted by the Westjet strike, despite being told that the flight would not be cancelled due to the labour dispute (false), there is no sufficient compensation when life events are missed, often accompanied by significant frustration and disappointment.  Reviewing the communications by the company, the lack of customer focus is obvious, with commentary priorities being primarily Westjet and its pilots.  At its core, these situations are internal human resource matters, and in a typical competitive marketplace, companies don’t survive for long if customers are not their top priority.  Customers simply want to receive what they purchased, with reasonable quality and in a reliable manner; this is not too much to ask.

BMO Financial Group announced its acquisition of the defunct Air Miles rewards program, indicating that improvements are on the way.  Given the many rewards program options available to consumers, it is likely that people select the ones that best meet their needs and bypass the rest, setting the stage for an uphill battle to reinvent Air Miles.  There is also a need to attract more vendors to participate, and companies are only likely to do so if they see a meaningful opportunity to increase business.  Will have to wait and see what BMO has in store and whether or not consumers and vendors will engage.

And, finally, it was my pleasure to join the Biz Panel from beautiful Nova Scotia once again, albeit in the face of difficult times for many, given the devastating forest fires.  Being in proximity to two forest fires has certainly been concerning, and I have been thinking about those who have been impacted over the past week.  Sincere thanks to all those who have been working so hard to keep our communities safe.

Pleased to join the CBC News Network Weekend Business Panel, alongside Mark Warner and Hillary Johnstone, talking high grocery prices, the US Federal Reserve interest rate increase, and ChatGPT’s subscription plans; you can watch our segment here.

Some thoughts on our discussion.

It’s no secret that rising prices have been challenging for consumers in recent months, especially at the grocery store.  And now that price freezes have concluded, many consumers are wondering when they might see some relief.  Although inflation rates have declined in recent months, it is expected to be a while before “near normal” levels will occur, which means that shoppers have a need to keep time tested advice in mind: make a list, be flexible in choices, focus on buying what is needed, and shop around.  As the Summer months near, we will see some additional produce choices in the marketplace, which could be helpful.  Having said that, it isn’t too late to start your own garden preparations, as seed displays begin to appear in stores!

Speaking of inflation, the US Federal Reserve slightly raised interest rates this past week, but unlike Canada, did not indicate a pause in rate hikes.  Although our countries are closely connected, in terms of business relationships and trade, there is something to be said for stepping back to observe how rate increases impact not only the economy, but also companies.  Business owners deal with a tremendous amount of practical, real world challenges on the front lines of their company on a daily basis.  Although inflation also affects companies, in terms of the goods/supplies that they purchase, they are also impacted by rising labour costs and interest rates, by way of debt and financing obligations.  It is important to balance increasing rates to combat inflation with adverse impacts to business in other areas, keeping in mind that the implications are often not immediate and there is a danger in “oversteering”.

And, finally, as ChatGPT continues to attract attention, will it be able to access subscriber money, to the tune of $20 USD per month?  There is a need for people and technology to work together to be more productive, in terms of business applications, however, as consumers choose carefully about where to spend their money in challenging economic times, paid subscribers may be elusive over the longterm (building a sustainable customer base is so important for companies!).  This technology has some applications, however, expect a number of real life stakeholders (such as those in the business world) to require more robust solutions.

Thanks for watching and see you again next time!