According to the PricewaterhouseCoopers’ report ‘Sizing the Prize’, global GDP will be 14% higher in 2030 due to AI. So, the sole contribution of AI to the world economy in coming twelve years will be over USD 15.7 trillion.
The report goes on to add that, “45% of total economic gains by 2030 will come from product enhancements, stimulating consumer demand. This is because AI will drive greater product variety, with increased personalisation, attractiveness and affordability over time.”
Do you know what this makes AI?
A big deal. In fact, a deal that matters the most in today’s business scenario.
Artificial Intelligence, as we know it, is a bundle of multiple technologies, which together help computers to mimic humans in the best way they can. These technologies aim at making computers sense, comprehend, act, and learn; either on their own (eg. Convolutional Neural Networks) or to augment human activities.
AI is an extensive field encompassing numerous tools, technologies, and methodologies. The world is seemingly progressing towards being more artificially intelligent and there are numerous artificial intelligence courses to help you with the required knowledge in this domain.
What does AI have to do with growth and productivity?
A report by Accenture, compared growth rates across fourteen industries, to estimate the impact of AI on the global economic growth through to 2035.
Among other things, one of the most notable findings of this report is that AI can fuel the overall economic growth rate by 1.7% across all these industries. The three sectors which will benefit the most by AI are Information and Communication (4.8%), Manufacturing (4.4%) and Financial Services (4.3%).
What you should be reading here is that Artificial Intelligence is predicted to boost profitability at an average of 38% by 2035, and will lead to the addition of USD 14 trillion across sixteen industries in twelve economies by 2035.
While the findings are stunning, the question of the moment is, How?
Well, in line with the current and evolving application of AI in the education sector, it will lead to the advent of highly personalized education programs, it will free up valuable resources by automating the mundane, and run of the mill tasks.
In industries like Accommodation and Food Services, and Construction, their often isolated, manually intensive processes will benefit from the contextual insights and valuable insights that AI spews after data munching. (cue in Deep learning frameworks, with grand fanfare)
In Manufacturing Industry, the stage has been set to welcome AI, with IIoT (Industrial Internet of Things) adopted widely, in addition to smart factories. The colossal amounts of data that these systems will generate will be a goldmine for AI systems in this industry.
This data will be squeezed for every ounce of juice it has, and will lead to significantly more efficient decisions. The contributions AI can make in this industry are long-term, and quite profitable from the economic point of view.
For the Financial Services market, the greatest gains will come from automation of tasks like data entry, data processing, even manually intensive jobs like credit scoring, and first level customer inquiries. Wing fields of financial services like market research queries, scoring and reviewing mortgages etc. would employ smart bots.
Again the humongous amount of data generated will work as a feedback system to further hone the industry’s efficiency. Accenture estimates that this industry will see approx $1.2T as additional GVA by 2035.
Implementing AI in the workplace is estimated to boost the employee or labour efficiency by approximately 40%+; this will effectively double the growth rate in more than 12 nations. The countries garnering the highest amount of benefit from AI in this field are expected to be the USA and Finland.
In the logistics and supply chain management field, autonomous trucking is expected to reduce the cost involved, and boost asset utilization, strengthening the possibility of a 24*7 runtime.
With many startups and auto giants trying to design the ultimate autonomous trucking machines, Transport is another industry set to explode with growth.
The energy sector will benefit not only from the extreme data processing capacity of AI, but also from smaller but efficiency oriented applications of AI like smart meters. As the horizons of innovation expand in energy sector, AI will be the harbinger of many disruptive developments.
The Point is:
The effect of AI on the productivity of a sector is largely dependent on how it is incremented with the sector. AI is indeed a new and arising factor of production, and has the untapped potential to introduce new sources of growth.
It will change how work is done, and in turn reinforce the role of people to drive business growth, in a new environment with different variables.
To keep AI on the positive side of your growth, there are a few things you’ll have to keep in mind.
First of all, it is necessary to know how AI will impact your industry, how quickly will those changes happen, and what are your options for responding to these changes. A strategic evaluation on these premises will keep you from investing where you don’t have to, and channel your focus to the areas that need attention, and will fuel growth.
Further, from here, you need to ask yourself, how a different AI solution can help you achieve your business goals, what is your business appetite, and how ready are you to embrace the change? What is your objective in adopting AI: are you syncing with the industry or are you planning to disrupt the industry?
The answers to these questions will help you assess the feasibility and affordability of desired AI solutions, the value they will add to your business, and how badly you need them. This cost-benefit analysis for augmentation and implementation of AI solutions will throw limelight on the personalization, consistency, and time saved through the planned initiative.
Developing the insight, governance and organisational collaboration to pick the right AI solution is crucial for the process, because AI even though applicable across all elements of the value chain, can lead to very different results owing to the starting point of implementation.
In a nutshell, look before you leap!
(Disclaimer: This is a guest post submitted on Techstory by the mentioned authors.All the contents and images in the article have been provided to Techstory by the authors of the article. Techstory is not responsible or liable for any content in this article.)
About The Author:
Vivek is the President of Consumer Revenue at UpGrad, an online education platform providing industry oriented programs in collaboration with world-class institutes, some of which are MICA, IIIT BANGALORE, BITS and various industry leaders which include MakeMyTrip, Ola, Flipkart to name a few.
He has 19 years of experience in diversified industries like Consumer goods, Media, Technology Products and Education Services. He has been leading businesses & multi-cultural teams with a consistent record of market-beating performance and building brand leadership. His previous engagement has been with Manipal Global Education services as Sr General Manager, Education Services (Digital Transformation Strategy & Global Expansion).