A future where humans go hand in hand with artificial intelligence (AI) inspires and frightens at the same time. The futurist thinks about how to make life easier for a person, and the layman thinks about how he will earn if he is replaced by a robot in the workplace. However, a new PwC study is able to dispel some of the fears of pessimists. Yes, AI will negatively affect some sectors of the economy, but in general, technology will create as many jobs as it will disappear.
For the next decade, AI will become a major market trend and business opportunity. Its contribution to global GDP is estimated at $15.7 trillion – according to PwC forecasts, thanks to artificial intelligence, this figure will be 14% higher by 2030. Up to $6.6 trillion will be needed to increase productivity, and $9.1 trillion to increase consumption, analysts believe. Our company NiX offers artificial intelligence consulting, you can find more at our website.
China, which aims to become a leader in AI by 2030, will benefit the most. Its GDP could be 26% higher. North America also has a good potential – up to 14 additional percent of GDP.
The areas that will benefit the most from AI are retail, financial services, and healthcare. It is about increasing productivity, improving quality and consumption. One of the AI applications is ChatGPT Prompt, which helps artists prepare their project prompts and interesting ideas in just seconds.
If we look at the situation as a whole, then AI is at a very early stage of development – although some markets are more advanced than others. From a macroeconomic point of view, the prospects for developing countries are huge: they can make a breakthrough and catch up with more successful rivals.
What is the economic impact of AI and where will that extra $15.7 trillion come from?
- Increasing productivity by automating business processes (including the use of robots and self-driving vehicles).
- Strengthening existing workforce with AI (intelligence that assists and empowers the human brain).
- Increasing demand through the availability of personalized and/or AI-powered products/services.
As already mentioned, the improvement of products and services, its impact on consumer demand, behavior and consumption will contribute more to GDP growth than productivity increases. This is because high quality and personalization will attract people and also make their lives better. For example, AI can save you from having to drive a car on your way to work. Another point is that increased consumption means more data, which means more insights and more opportunities to improve the product.
Having studied the preferences of its customers and offering them an individual approach, a business is thereby able to increase its market share. This is especially true for healthcare, the automotive industry and the financial sector.
Undoubtedly, the development of AI will lead to the extinction of some professions. In a number of production chains, a person will no longer be needed. At the same time, artificial intelligence will start creating its own production links. Shifts in productivity and consumer demand will also lead to new jobs, experts say.
A new type of worker will use creative thinking and look for the next application of AI. In addition, the launch, support, management and regulation of technology-related processes will require the availability of appropriate personnel.
Efficiency is a key success factor: the faster the business masters the technology, the more advantages it will receive and the less it will lag behind competitors. This also applies to those areas that AI will affect more (transport, logistics), and those where the penetration of technology is relatively slow (energy).
PwC analysts have assessed the potential impact of AI in various areas. The first step was to assess how soon each sector would adapt and adopt the technology. This can happen in the short term (less than 3 years), medium term (3 to 7 years) and long term (not earlier than 7 years).
AI will have the greatest impact on healthcare and the automotive industry. We are talking about healthcare providers, pharmaceuticals, insurance in the first case – and repair, supply of spare parts, production of components, increasing mobility through “autopilots” in the second. Both have an AI Impact Index of 3.7.
The financial sector (3.3), transport/logistics (3.2), technology/communications/entertainment (3.1), retail (3), energy (2.2) and manufacturing (2.2) will feel less impact.
For healthcare, artificial intelligence means processing huge amounts of data, making more accurate and earlier diagnoses, prescribing an individual treatment plan, effective prevention, and preventing epidemics.
In the automotive industry, the influence of AI will be most pronounced in carsharing using unmanned vehicles, the emergence of full-fledged driver assistants, and systems for monitoring the “insides” of a car.
The financial sector will benefit from the emergence of personal planning, the fight against fraud and money laundering, and the full automation of processes.
