Macro Markets and Machines_The Economic and Market Transformation Driven by AI_GWM report - Flipbook - Page 51
Macro, Markets, and Machines
November 2025
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Plan for orderly tax rebalancing by monitoring shifts from labour to capital, protecting investment incentives
through disciplined capital taxation regimes, including modernized systems to capture excess rent from
intangibles, while avoiding a race to the bottom through coordination, where feasible.
D. Get Government AI Ready
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Embed AI in core mandates with a whole-of-government approach that integrates responsibilities into
departmental strategies, budgets, and service delivery, backed by clear roles, central coordination, and
common principles.
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Invest in public sector capability to apply AI for better and lower-cost services in healthcare and education,
build an innovation appetite with test-and-scale pathways, and pair it with privacy, safety, equity, and
accountability safeguards to protect the public interest.
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Mobilize public purchasing power to make smart build-versus-buy choices, scale credible homegrown
solutions, and protect strategic interests like security and data sovereignty.
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Treat enabling infrastructure as public goods with reliable data governance and access, sector data hubs,
interoperable application programming interfaces, and digital IDs, plus fit-for-purpose compute, grid, and
interconnects to lower fixed costs.
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Build public trust and dialogue with safeguards and clear rules of the game on safety and cybersecurity,
privacy, and data and IP rights, including access and portability.
E. Keep Markets Contestable and Safe
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Promote competition and market dynamism by ensuring open access to essential inputs – compute, cloud,
chips, and data – requiring interoperability and portability with fair switching and data mobility and
scrutinizing exclusivity and nascent acquisitions with procompetitive remedies.
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Strengthen resilience of financial markets by mapping critical third-party and cross-market dependencies,
monitoring concentration and interconnected exposures, conducting systemwide stress tests, enhancing
transparency and incident reporting, and aligning the prudential perimeter to capture nontraditional risks.
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Bolster household resilience so households can share in wealth creation beyond wages while staying resilient
to shocks – for example, through greater financial literacy, investment incentives, default diversified savings,
portable pensions, prudent leverage limits, and clear advice standards.
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Strengthen international coordination to realize gains and contain risks by converging on risk-based
standards for data, testing, and assurance, enabling trusted cross-border flows of capital, trade, and data;
coordinating taxation and prudential frameworks to limit arbitrage; ensuring interoperable market
interconnections; and supporting developing countries through capacity building so benefits are
widely shared.
Scotia Wealth Management
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