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The scope

of this high-

velocity

change will

affect all

sectors

GATEway autonomous vehicles are tested on Greenwich peninsula

London occupiers, including legal, banking and insurance,

are expected to face upheaval in the face of AI and

automation. At the same time young nimble and digitally

focused businesses are emerging to challenge decades-

old incumbents. The trend will over time lead to a very

different occupier mix, and requirement for property in the

capital, which will need to adapt once more to maintain its

position as a vibrant centre of commerce.

According to Boston Consulting Group, cost reductions

in labour, logistics and operations could lead to

productivity gains of 5-8% of manufacturing costs by 2025.

The fourth industrial revolution, or ‘Industry 4.0’, is not just

about the potential economic benefits of new technology

– its impact could be wide reaching on a human level. The

rapid advances in technological capabilities could help

fight climate change, cure diseases, and provide affordable

clean energy, as examples.

In order to achieve these goals in the face of global

competition, there needs to be considerable public and

private investment in the infrastructure and platforms

that unlock these new industries. In the Spring Budget,

the Chancellor announced £300 million for new academic

research, £200 million for the expansion of high-speed

broadband as well as an additional £4.7 billion to be spent

on research and development by 2021. The All-Party

Parliamentary Group, founded my Alan Mak MP, has the

challenging task of making our political and economic

structures fit for purpose in the change to come.

For London specifically, the fourth industrial revolution

has the potential to provide solutions for many of the

problems that currently faces the capital. Interconnected

devices, smart buildings and smart cities could provide

data for improving healthcare, traffic and over-population.

With unprecedented processing power and data storage,

as well as access to the shared knowledge of the

increasingly connected population, the opportunities are

significant.

It is clear that the implications of the fourth industrial

revolution are yet to be widely felt, but the evidence shows

that we will see dramatic changes in all areas of our lives.

Perhaps this is why Klaus Schwab, Founder and Executive

Chairman of the World Economic Forum, stated that:

“We

must develop a comprehensive and globally shared view

of how technology is affecting our lives and reshaping our

economic, social, cultural, and human environments. There

has never been a time of greater promise, or greater peril.”

CUSHMAN & WAKEFIELD

30

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