Advances in artificial intelligence (AI) and robotics are reshaping the institutional investment management industry from all angles.

Over the last decade, high-speed automated trading has already revolutionised the day-to-day operation of financial markets and robo-advice has revamped the way wealth managers engage with clients. AI is upending the profit models of many companies in institutional investment portfolios. Within funds, many workers with repetitive and numbers-based jobs are set to be replaced. But the biggest fallout on superannuation and pension managers from the changing nature of work could be how it destroys the livelihoods of millions of their clients.

Tesla chief executive Elon Musk made headlines worldwide in July when he declared AI a “fundamental risk to human civilisation”. But despite a number of respected voices issuing dire warnings, the systemic risks associated with the rise of AI may still be underappreciated.

Centre for the Future founding executive chairman Dr Richard Hames believes most of the superannuation industry and investment community at large seems oblivious to the fact that the traditional way in which monetary value is extracted from what people do for a living – their day job – is crumbling right under humanity’s feet.

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