Worcester Business Journal

wbjournal.com | February 19, 2024 | Worcester Business Journal 21 Leveraging intelligence for a smarter community BY PAUL MATTHEWS Special to WBJ T he implications from the use of artificial intelli- gence, or AI, is a pressing question facing every consumer, employer, and policymaker. To provide insights on the issues associated with AI, the Worcester Regional Research Bureau brought Professor Renée Cummings, the University of Virginia's first data activist-in-residence, to address our annual meeting. Cummings is a 2023 VentureBeat AI Innovator Award winner, one of the World Summit AI's Top 50 AI Innovators in 2020, and internationally re- nowned as a member of the World Economic Forum's Data Equity Council and AI Governance Alliance. In her address, Cummings was clear AI is not coming in the future, but instead has already been in use for a long time. Everyone has already been using AI for years, through Google searches, Amazon recommendations, Netflix queues, Spotify playlists, and social media feeds. "Just about every industry, every discipline, and every aspect of everything we do is being reimagined, redefined, repositioned, and resituated with its use," Cummings said. e impact of AI has been recognized internationally, with a United Nations advisory body call- ing for AI's implementation under guiding principles of inclusivity; public interest and accountability; data gover- nance; universal buy-in; and international law. Nationally, an executive order called for new AI safety and security; protections from AI-related fraud and deceptions; new data privacy measures; civil rights protections; supports for consumers, students, workers, and patients; resources for AI research; and responsible government use of AI. Cummings pointed out these responses illustrate ethics and innovation can and should co-exist as AI is devel- oped. She called for governments to leverage different forms of intelligence, including cultural and urban intelli- gence, in the development of smart cities. While AI has the ability to deliver extraordinary re- wards, there are enormous risks, since it has the potential to deny opportunities, limit access, and even undermine democracy and civil and human rights. Cummings called for appropriate oversight with transparency, account- ability, and stakeholder engagement. Most businesses are already doing a good job protecting consumers' information, providing a strong foundation for the ex- tension of such protections to AI. Such public oversight, engagement, and education measures would ensure the successful utilization of AI. Bringing Cummings with her insights on AI is part of long tradition of the bureau providing guidance on the complex issues confronting our community. Anal- ogous to AI, our data-driven reports, briefs, and online visualizations lead to informed recommendations and improved decision-making in Greater Worcester. Paul Matthews is executive director and CEO of the Worcester Regional Research Bureau. Renée Cummings' address on AI and the WRRB's other resources are at www.wrrb.org. Embrace the new normal of borrowing costs Paul Matthews T aming inflation has been among the biggest challenges of the post- COVID economy. In an otherwise resilient economy (historically low unemployment, high consumer confidence and spending), rising prices have kept the Federal Reserve's finger on the trigger, leaving interest rates high, and nearly all businesses are feeling the heat. e Fed's efforts to bring down inflation by raising interest rates in 2022 and 2023 may have kept the economy from overheating, but it has caused some pain. Banks responded to the rising interest rates by raising the cost of borrowing. To no one's surprise, the already tight housing market clamped up further, planned construction projects were put on hold, and businesses held off on large capital expenditures while waiting for rates to tick down. We're still waiting. e tight economy may be loosening soon, but in order for that to happen, Central Massachusetts business leaders will need to embrace a new normal of borrowing costs and move forward with their plans. e Fed is planning to lower interest rates at some point this year, as WBJ Correspondent Livia Gershon writes in her "Watching the Fed" story on page 14. Central Massachusetts banks are eagerly anticipating this change, as it will allow them to lower borrowing costs for their business and retail customers. Still, we won't see the historically low borrowing rates from a few years ago – as dropping rates too quickly creates a different set of problems. Regardless, the prime lending rate should tick down some - perhaps dropping a percentage point from the current 8.5%. But 7.5% would still be a far cry from low rates seen as recently as 2021 where the prime bottomed out at 3.25%, but for businesses and industries waiting to undertake major capital projects, any lowering of rates will help loosen the purse strings. Commercial lending is a key driver of economic output, and businesses that can approve spending initiatives with slightly lower rates will add needed fuel to grow investment and take some of the pressure off other borrowers. Investors can't sit on the sidelines hoping for a return to the low, low rates we saw over the last decade. ose won't come back anytime soon. If you want to know more about the future direction of the economy locally and nationally, WBJ is hosting its annual Economic Forecast Forum the morning of Feb. 29 at the AC Hotel by Marriott Worcester, with a keynote speaker from the Federal Reserve Bank of Boston and a panel of industry experts offering their takes on what's ahead in 2024. We hope you can join us, and despite major challenges in a variety of sectors, we can learn how we all can contribute to keeping our overall positive economic momentum moving forward. The above Editorial is the opinion of the WBJ Editorial Board. The Viewpoint column, the A Thousand Words cartoon, and the Word from the Web commentary represent the opinions of their authors and do not necessarily reflect the views of WBJ or its staff. WBJ welcomes letters to the editor and commentary submissions. Send them to bkane@wbjournal.com. W W

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