From Ayres Capital

Our world, and the civilizations formed on it, has always undergone relentless change. Throughout much of history this change has happened slowly, with gradual developments that generally spanned multiple lifetimes. It is only now we are to find ourselves in a unique time in global and human history where that rate of change has accelerated greatly. Through human ingenuity and technological progress we have thrust fundamental changes upon our planet and society, often within the span of a mere decade. These changes have had many positive benefits to be sure. We have seen an extraction and accumulation of wealth unrivaled in history, and have experienced a rapid increase in the standard of living around the globe as a result of it. Yet this rapid change, and all its benefits has not come without its problems. With our increased productive capacity and increased populations, the strain our extraction has put on the planet has begun to take its toll, leading to rapid climate change resulting in increasing insecurity, threatening to make some areas uninhabitable. Food, water, and other scarce resources across the world are being affected at every level of their production and consumption, leading many to wonder where they will come from in the future. Only through recognition of these resources true value will we be encouraged to conserve and use them as efficiently as possible; something sorely lacking in our world where all growth is fueled by consumption, and all technological advancement is geared towards increasing that consumption, rather than making it more efficient and sustainable.

Technology and the changes brought by it may help us to find a solution, but given our current state of affairs, it seems we face a tough road ahead. Increasing insecurities, (coupled with growing wealth inequalities) have the potential to significantly compound social issues. Nowhere will these social tensions be more acutely felt than by those highly developed societies that first witness the broad application of Artificial Intelligence. We have seen before, especially here in the western world, the substitution of labour for capital on a massive scale, leading to the first wave of “obsolescence” thrust upon a generation of workers. When globalization put all labour in competition with each other the only logical answer became for the individual to elevate themselves in the workforce; through education and personal investment, training and certification here in the developed world we grew an economy around managing, organizing, serving and abstracting. This was only natural, as people’s expectations for higher quality of life necessitate them leaving some of the old drudgery and menial labour behind. While these remained high value, complex skills that could only be performed by the human intellect, efforts were of course rewarded appropriately. It is our belief that we are now on the edge of a new paradigm shift where the increased capacity of computers, specifically their ability to learn/improve over their performance of a task, will leave an enormous section of the workforce unable to compete. Analytical sciences, the legal profession, accounting and engineering, all are at risk by being disrupted by low cost, easily reproducible digital technology that significantly lowers the time required, and cost, of delivering these highly technical services. This is a shift we see as unavoidable and one of the most challenging we have yet to face. Many will face a sharp devaluation of their time, and obviously, while efficiency’s will be found, much of that value will be re-allocated to those who control or administer the economy’s new forms of production.

At first, one may be discouraged by these seemingly insurmountable challenges, yet with the right perspective and preparation we believe there is a whole new world of opportunity ahead of us. Simply put, we couldn’t plan on being in business long if we weren’t prepared to approach these challenges. To preserve our environment and the planet as a whole we have made it our mission to be as efficient, local, and sustainable as possible in all aspects of our business ventures. Sometimes it’s the little things, like choosing to conduct business without paper, other times it is the big decisions, like choosing to purchase products and materials that were always produced sustainably and locally. Most companies still rely on externalizing their costs to as many other parties as possible; whether this be through exploiting cheap labour elsewhere or shipping things long distances for the ironic sake of cost effectiveness (see cheap labour, while externalizing massive carbon emissions). These factors cannot be helped, as they are incentivized by our society on a massive scale. What we can do as a business is find and grow the incentives elsewhere while doing our best to provide a competitive product/service. Each and everyone one of us have the greatest incentive to ensure the protection of our home.

In regards A.I. unfortunately there isn’t much the individual can do to prevent this relentless march of progress; at this point it is all but inevitable. A big reason Ayres Capital was formed was to help protect our investors and employees from this threat. All of us need to stay competitive and productive, but here at Ayres Capital we recognize there are just some things that machines do better. Those who recognize this early enough have no reason to be afraid as it offers a great opportunity to assess and adapt. Production will always require organization, direction, and investment; humans have an innate ability to plan, organize, and seek opportunity, providing for an enduring place for skilled, thoughtful, and passionate people to manage and address these changes as they come. At Ayres Capital, doing this superfluously is our goal, with our capital and our skills we plan to identify, not only cope with, but leverage these challenges & changes to our advantage and the advantage of all those who work with us.

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