Disruptive Technologies

It is claimed that technology is changing the world at an unprecedented pace. Our disruptive technology seminar, addressing the social, economic and investment implications of these changes, took place at the Soho Hotel on Thursday 2 November.

Britain’s innovative culture has often been characterised by undue modesty. Not least in the face of Brexit, is it now time for the UK to abandon its innate reserve and self-effacing rhetoric? In making the case for a more confident and vocal approach, we look at four areas in which British ingenuity and enterprise are not only leading but changing the world.

In June 2014, we held an in-house investment conference on disruptive technologies. With insight from external speakers from technology companies, investment strategists and specialist fund managers, we considered how technology will change how we live and how these changes might affect investors. It was a fascinating day.

Personalised medicine will disrupt every part of the healthcare sector, from R&D and clinical trials, through diagnostic testing to regulation and healthcare provision (whether insurance-based or through national systems, such as the NHS). This will be driven by economics and improved medical outcomes. A key challenge will be the storage and analysis of huge quantities of patient data.

Despite alarmist media reports, the risk to most jobs from automation is low for the foreseeable future — we tend to an optimistic view of mankind’s ability to respond to technological disruption. Nonetheless, certain segments of mid-skill workers may be vulnerable and politicians will need to address the impact on standards of living.

Through advances in battery storage technology, we are on the cusp of major changes for electric vehicles and alternative energy. These are likely to be disruptive to utilities — with the ability for homes to go ‘off grid’ — and car manufacturers. Less reliance on fossil fuel consumption could have significant geopolitical implications.

Blockchain offers an alternative to many record-based transactions, from money transfers and asset custody to ‘know your client’ checks, healthcare records and music downloading. It would release huge cost savings and create additional value, but could negatively impact employment levels. Otherwise, transaction times are likely to be reduced.

Last year, for the first time ever in the UK, solar power generated more electricity than coal over the course of a month. In tandem, major advances in battery technology are delivering unprecedented energy-storage capabilities. Are we on the verge of a truly “disruptive” breakthrough? And, if so, who are the winners and losers likely to be?

Electric vehicles (EVs) have existed since the 19th century, but have been most prevalent in niche applications such as mobility scooters and forklifts.