Artificial Intelligence to Add Trillions to the Global Economy
A recent PwC report reveals widespread adoption of artificial intelligence (AI) may contribute an additional $15.7 trillion to the global economy by 2030. This marks a 14 percent increase in gross domestic product — an amount higher than the current output of India and China combined. Moreover, of this total, PwC anticipates $6.6 trillion will come from increased productivity, and $9.1 trillion will come from consumer-side effects.
The report indicates China will benefit the most from AI, with a total impact of 26.1 percent of GDP or $7 trillion. China is seeing this potential gain because it derives a high proportion of its GDP from manufacturing, which could benefit from AI. North America follows as a major beneficiary of the AI trend, with the region projected to see an increase in GDP of 14.5 percent, or $3.7 trillion, from the technology.
An Evolving Job Market
Although AI offers benefits to consumers and businesses alike, including more accurate health diagnoses and improved customer insight, concern that robots and automation could replace human jobs still remains. However, researchers suggest the technology, coupled with human expertise, can produce additional long-term advantages.
“The mindset today is man versus machine,” noted Anand Rao, an AI researcher at PwC in Boston, at the latest Annual Meeting of the New Champions, according to Bloomberg. “What we see as the future is man and machine together can be better than the human.”
Furthermore, PwC claims that although there will be some job displacement due to increasing AI use in the future, new jobs will emerge.
“The adoption of ‘no-human-in-the-loop’ technologies will mean that some posts will inevitably become redundant, but others will be created by the shifts in productivity and consumer demand emanating from AI, and through the value chain of AI itself,” the PwC report states. “In addition to new types of workers who will focus on thinking creatively about how AI can be developed and applied, a new set of personnel will be required to build, maintain, operate and regulate these emerging technologies.”
Artificial Intelligence and Competitive Outlook
The PwC report illustrates how AI has the makings to be a primary source of disruption, transformation and competitive advantage in today’s economy. And PwC encourages businesses to form a strategic plan that allows them to capitalize on AI opportunities and mitigate future risk.
“With the eruption of AI, some of the market leaders in 10, even five years’ time may be companies you’ve never heard of,” notes the PwC report. “In turn, some of today’s biggest commercial names could be struggling to sustain relevance or have even disappeared altogether, if their response has been too little or too late.”
PwC believes businesses should analyze technological developments and competitive pressures to determine how they’ll benefit from AI use and keep pace with change. With proper insight, governance and organizational collaboration, businesses will be in a better position to drive AI initiatives forward.