Many sectors are continuously embracing digital innovation. The retail world, however, is a different place from BCE (Before Covid Era) than it is AD (After Disaster).
Though a great deal of transformation was spurred by the pandemic, this transformation continues among small and medium enterprises (SMEs), and has proven essential for their economic recovery.
This was validated recently in a report by the World Economic Forum (WEF). It said that in direct response to the massive COVID-related shift to e-commerce, 70 percent of small businesses ramped up their digital efforts. A survey by SME business management solutions company vcita says that whereas 20 percent of companies said they spent more than $500 to $1,000 on new digital tools in 2021, that number went up to 33 percent in 2022.
Knowing where the future lies, more companies are now allocating larger budgets for more digital tools, including new payment mechanisms. The above survey by vcita found that three-quarters of SMEs in the past year alone have added mobile payments, such as Square, Stripe, PayPal, and Venmo.
It’s interesting to note, perhaps even surprising to some, that only half of Canadian small businesses, pre-pandemic, had a website or social media channel. More than two-thirds made changes to their online presence during the pandemic, including e-commerce, a new website, or increased product selections online.
As such, the Canadian government, ostensibly recognizing that the future of the economy lies in digital growth, launched the Canada Digital Adoption Program (CDAP) to “help Canadian small- and medium-sized businesses grow their online presence, and upgrade or adopt digital technologies.”
This initiative aims to provide $4 billion over four years, supporting up to 160,000 small businesses, according to the announcement. The goal of this funding is for SMEs to “stay competitive and meet their customers’ needs in the digital marketplace.”
Part of the grants include the government’s Grow Your Business Online Grant, which provides micro grants of up to $2,400 to help small businesses implement digital storefronts and e-commerce capabilities. Meanwhile, the Boost Your Business Technology Grant provides grants covering 90 percent of costs up to $15,000, for consultations to develop a digital adoption plan.
“This underscores that for many Canadian small businesses, access to cost-efficient, user-friendly and easy-to-maintain digital tools are more than just nice to have—they’re essential for businesses to survive challenges,” the government statement said.
Such a program comes at a crucial-yet-good time. A recent GoDaddy pool of small businesses found that 37 percent believed adopting new online tech would be cost prohibitive, while almost a quarter cited lack of knowledge in implementation as the biggest hurdle.
Adina Zaiontz, CEO of Toronto-based Napkin Marketing, is helping clients play catch up with digitization.
Post-pandemic, she found, companies benefited from automation, applied in a variety of ways.
With a regional airport, her company automated their parking passes. She also helped an HR company automate their resume sorting. She also assisted a legal team in automating their documents, and, for her own company, she initiated online training through Trainual. The highest volume of work comes from revamping and retooling websites, she said.
And while these examples aren’t retail, the digital transformation lessons are still relevant.
“Even just any website transformation that we’ve done, is that story. A website is the company’s presence online. It’s got to look good from a design point of view, but also has to function well. Having the site visible on search engines is part of the functionality; they have to be findable online. Then, when people get to the website it has to be presentable and functional.”
Lately, she has been helping clients with geotargeting, where advertisements reach specific target demographics, and geographical locations, using sophisticated software that determines various factors of interest.
“They are social media ads, but also ads that appear on search engines. So, that’s pretty innovative. It’s targeting people not only by what they are searching for, but by their individual locations,” she said.
“It takes a certain knowledge to know that. It’s just cool that small businesses now have the ability to do this pretty advanced targeting and be able to reach the candidates they want to reach.”
Dave is a journalist whose work has appeared in more than 100 media outlets around the world, including BBC, National Post, Washington Times, Globe and Mail, New York Times, Baltimore Sun.
How has US wealth evolved since the 1980s?
America’s economy has exploded since 1989.
Gross domestic product, which measures all of the goods and services produced in a year, grew from $9.9 trillion to $22.5 trillion from 1989 to 2023 (after accounting for inflation), according to the Bureau of Economic Analysis. This figure represents a massive increase in economic output.
This increased productivity has fed into a similarly significant increase in wealth. The Wealth Enhancement Group used data from the Federal Reserve to look at how the assets held by U.S. households has evolved over time.
Data shows that American households owned a combined $161 trillion in assets in the third quarter of 2023, up from $24 trillion in 1989. That makes for a roughly 570% increase, or 170% after adjusting for inflation.
After accounting for debt, such as mortgages, America’s total household net worth grew to $142 trillion, up from $20 trillion. Although the number is down by about 1% from its peak in the second quarter of 2022, it still reflects a dramatic increase over time.
The most valuable asset class the typical American family holds is real estate. Besides a significant drop during the 2000s subprime mortgage crisis and a brief dip following interest rate hikes in 2022, housing has been a reliable generator of wealth for the middle class.
Wealth Enhancement Group
Household assets have skyrocketed since 1989
For Americans in the bottom half of the wealth distribution, housing made up 51% of their assets. Wealthier households, in contrast, tend to have higher shares of their savings in equities.
Households in the top 0.1% held 60% of their assets in shares of public and private companies in 2023. Meanwhile, households in the bottom half of wealth in the United States held only around 6% of assets in equities.
Yet, despite how much housing has grown in value, its ascent pales compared to the fastest-growing asset class: public equities.
Between 1989 and 2023, the value of public stocks held by American households grew by nearly 1,700%, rising from $2 trillion in value to $37 trillion. This trend, coupled with the fact that shares in companies are held disproportionately by the rich, has caused the share of American household assets held by the top 0.1% to increase from 8% to 12%.
Wealth Enhancement Group
The wealthy tend to own shares in companies
Some economists argue that, in theory, the ratio of a country’s wealth to its economy, as measured by GDP, should be constant over time.
Yet, data from the Bureau of Economic Analysis and the Federal Reserve data shows that the ratio of the net worth of American households and nonprofit organizations to GDP rose from around 3.6 in the 1980s to 5.5 in the third quarter of 2023.
In 2022, YiLi Chien and Ashley Stewart, two researchers at the St. Louis Federal Reserve, offered a few theories to explain how this ratio has increased over time. They suggest that American companies might now have greater market power, allowing them to charge more. The authors also note that since the internet era, many of America’s biggest companies, such as Meta and Google, offer their services to consumers for free—while investors may value their economic contributions, they do not count for much in the GDP numbers.
However, assets are not net worth. The rich are more likely to own their homes outright. In the third quarter of 2023, households from the top 0.1% owned $1.83 trillion worth of real estate while owing just $70 billion in mortgages. In contrast, households in the bottom 50% of wealth owned $4.87 billion of real estate against $3 billion of housing debt.
Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.
This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.
Deepfakes cause 30% of organizations to doubt biometrics, Gartner finds
A look at AI deepfakes, it’s impact on security, and ways to mitigate the risks
A fake moustache and trenchcoat isn’t a convincing disguise, right? But a digitally altered video that makes your face identical to someone else’s?
That’s a different story.
Deepfakes are artificial images or videos that imitate a person’s likeness so convincingly that it can be nearly impossible to recognize they’re fake. Hackers use them to impersonate people’s faces and voices. This can have monumental impacts — even $25 million worth, which is what one undisclosed company lost in a deepfake scam.
Even with all the money a company spends on voice authentication and facial biometrics, it can all be in vain if a deepfake hacker manages to fool them.
Gartner explores the impact of deepfakes on organizational policy, and we’ll share some risk management considerations to address the trend.
30% of organizations can’t rely on facial recognition software and biometrics
Biometrics rely on presentation attack detection (PAD) to assess a person’s identity and liveness. The problem now is that today’s PAD standards don’t protect against injection attacks from AI deepfakes. Once a bulletproof security strategy, biometrics are now inefficient for 30% of companies surveyed by Gartner.
“These artificially generated images of real people’s faces, known as deepfakes, can be used by malicious actors to undermine biometric authentication or render it inefficient,”— Akif Khan, VP Analyst at Gartner
The solution is a demand for more innovative cybersecurity tech. Gartner advises organizations to update their minimum requirements from cybersecurity members to include all of the following
- Injected attacks detection (IAD)
- Image inspection
On top of that, you can beef up security with:
- Device identification: Numerical values or codes to identify a user’s device
- Behavioural analytics: Machine learning algorithms to detect any shifts in day-to-day online behaviour
So, how can you account for deepfakes risks and mitigation in practice? Here are a few more tips to consider:
- Educate employees: Hold monthly or quarterly meetings with experts in the field to help your employee identify common signs of deepfakes, including blurred or pixelated images in a person’s video, or distorted audio. Greater awareness of what to look out for can allow employees to flag suspicions.
- Don’t rely on one authentication process: Multi-factor authentication demands 2+ pieces of evidence to verify a user before admitting them into a network. Include email, phone, or voice verification in addition to biometrics.
- Invest in deepfake detection software: Consider a subscription Sensity AI, Deepware Scan, Truepic, or Microsoft Video Authenticator.
Gartner plans to share more findings and research on deepfakes at their security and risk management summits taking place in various countries around the world.
Read more about those summits and see the news release here.
Veronica Ott is a freelance writer and digital marketer with a specialization in finance and business. As a CPA with experience in the industry, she’s able to provide unique insight into various monetary, financial and economic topics. When Veronica isn’t writing, you can find her watching the latest films!
Where companies have adopted AI—and where they are planning to do so in the near future
On Nov. 30, 2022, OpenAI launched ChatGPT, a chatbot driven by artificial intelligence. The app spread like wildfire. Not only did it provide an entertaining companion to chat with, but it also showed promise as a piece of productivity software.
ChatGPT allows users to ask questions about myriad topics and get useful responses in a way that search engines like Google cannot provide. Similar technologies have emerged in all kinds of domains, including image generation, language translation, transcription, computer programming, and more.
Firms across the U.S. are embracing artificial intelligence. To find out which regions are the most enthusiastic about AI, Verbit analyzed data from surveys taken by the Census Bureau in December 2023. Overall, 4.9% of businesses said they were using AI to produce goods or services in the past two weeks, while 6.7% say they plan to within the next six months.
Unsurprisingly, information technology companies are the most eager to use artificial intelligence—22% of respondents from American tech companies said they had used AI for their products or services within the past two weeks. That number actually understates AI’s impact in the field. A survey of computer programmers conducted by JetBrains, a software company, found that 77% of respondents used ChatGPT, while 46% used GitHub Copilot, an AI coding assistant.
Professional, scientific, and technical services were the second-most likely type of firm to respond that they used AI tools, according to the Census Bureau. Law firms are using tools to scan through thousands of past cases. And, according to Tess Bennett, a technology reporter for Financial Review, consultants and accountants are using AI to create PowerPoint presentations and conduct exploratory data analysis.
Some businesses have been quicker to adopt AI than others. Companies in Rhode Island lead the way on this front—8.7% of businesses in the state are currently using AI, nearly twice the rate of companies in the United States as a whole.
Companies on the West Coast and the Southwest tended to be more AI-friendly, while companies in the Rust Belt were likelier to have the lowest interest in using AI tools.
This story matches the Census survey numbers with data on what kinds of companies each state has within its borders and the education level of its workforce to understand why these disparities across states exist.
In general, states with a higher share of businesses in the technology sector also were likely to have more businesses use AI to produce goods and services. However, the weak correlation suggests that despite all of the hype surrounding AI, companies have still been slow to change their practices to adopt the technology.
Getting on the bandwagon
Businesses in Washington D.C., were the most likely to say they planned to adopt AI in the next six months, at 13.7%. Meanwhile, about 9% of businesses in Maryland, Alaska, New Mexico, Rhode Island, and Florida said they planned on implementing AI. Alabama and Delaware were the least enthusiastic about AI adoption—only 3.3% of businesses in the two states reported plans to implement AI.
This analysis of Census data found a much stronger correlation between how many of a state’s firms are in the tech sector and their willingness to implement AI in their business practices in the near future.
Similar trends were found when it came to states with highly educated workforces—in general, the higher the share of a state’s residents with college degrees, the more likely its businesses were to say they were planning on implementing AI. Artificial intelligence might be the future. But Census data reveals it is still early days.
Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.
This story originally appeared on Verbit and was produced and
distributed in partnership with Stacker Studio.
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