“We are on the cusp of a technology-driven ‘supertransition’” - RMIT expert says deep economic change is occurring with profound consequences for business

RMIT economist Dr. Darcy Allen says the world is in an economic ‘supertransition’: profound economic change driven by the simultaneous combination of technologies.

In a keynote address as part of the RMIT Future Ready Business series in Jakarta, Allen explained that simultaneous technology combinations are propelling us into a digital economy at an accelerated rate.

“Today's business environment is shaped by an unprecedented number of simultaneous technological advances, including blockchains, generative artificial intelligence, quantum computing, and low Earth orbit satellites,” he said.

Allen said that businesses and society must begin to look at technological change more holistically, instead of viewing each advancement in isolation.

“We must understand how these technologies are combining in unique and unexpected ways, and business and policymakers must rapidly adapt,” he said.

“These technology combinations are reshaping how we organise society. They give us new ways to organise people and trade, not just physical things.”

“For instance, artificial intelligence and blockchains combine to create new types of autonomous economic agents that act on your behalf using smart contracts and cryptocurrencies.”

Business and Entrepreneurship

12 November 2024

Dr. Darcy Allen on stage in front of PowerPointPowerPoint slide reading 'The Supertransition'

RMIT economist Dr. Darcy Allen presenting in Jakarta.

Allen said as well as affecting how we organise society, this supertransition is creating a digital economy that differs in structure from today’s economy, with consequences for business.

“The digital economy we are heading towards will be more open, global, and complex,” he said.

“Entrepreneurs will increasingly access new digital tools, enabling them to create valuable, global companies at much lower cost. They also face new competitive pressures and uncertainty as we accelerate through the supertransition.”

Allen said that policymakers faced a growing problem with the pace of change, with existing policy settings, public service systems and legislative frameworks unable to keep up with the pace of change.

“Policymakers have long faced the challenge of keeping up with new technologies - this problem will only be exacerbated during the supertransition,” he said.

“There will be a need for new mechanisms to evolve regulatory frameworks.”

Allen gave his keynote address as part of RMIT’s Future Ready Business series in Jakarta. The global series showcases the expertise of RMIT’s leading researchers in working with key industries to unpack and explore trends that will help businesses to become ready for the future.

Story: Finn Devlin

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