Artificial intelligence (AI) could add $13 trillion to worldwide economic output by 2030, equivalent to about 1.2 per cent of additional GDP growth a year, according to a new report.
The study by McKinsey Global Institute has predicted that about 70% of companies would implement some form of AI by the end of the next decade, with frontrunners set to reap a large financial benefit.
Early adopters of the technology could double their cashflow, with laggards suffering a 20 per cent decline.
Overall, AI could deliver $13 trillion in additional global economic activity by 2030, putting its contributions to growth on par with the introduction of other transformative technologies such as the steam engine.
Companies that fully absorb AI over the next five to seven years may double their cash flow; those who don’t could see cash flow decline by about 20%. https://t.co/YbBHyo3I6V pic.twitter.com/TiLIv4DuVC
— McKinsey Global Inst (@McKinsey_MGI) 5 September 2018
The institute’s model expects about 70 percent of companies will adopt at least one form of AI by 2030, and that a significant portion of large firms will use a full range of the technology.
AI uses large data sets and algorithms to mimic human behavior. The world’s two largest economies, the US and China, are both racing to invest heavily in the technology.
Beijing, in particular, has made AI part of its five-year plan that runs through 2020 and wants to become a leader in the technology by 2030, the McKinsey report pointed out.
The McKinsey report laid out how AI will likely impact the economy through multiple channels, including helping or augmenting human labor, substituting it, expanding available products and services, increasing global data flows and creating wealth.
But the report noted the implementation of the technology will likely incur a range of corporate and societal restructuring costs, as well as disrupt employment, reducing consumption.
Analysis
With this technology set to transform the workplace, Mark Bridger, SVP, Europe, OpenText commented that we should stop viewing AI as a threat to employment, and how this technology can work alongside humans to boost business productivity and make employees’ lives easier
“Artificial intelligence (AI), robot technology and machine learning are automating jobs and bringing sweeping social change,” Bridger said. “With many UK organisations seeing digital technology as a key strategy to remain competitive, there can be no denying that every job in every industry will soon be impacted by developments in AI – and we’ll swiftly see the impact of this boost across UK business.
“AI technology will completely transform the workplace as menial tasks, and some non-routine jobs, are digitalised through robotics and process automation. However, this disruption is not something we should fear. Collaborative robots – or ‘co-bots’ – will allow for greater efficiency while also taking some of the day-to-day strain off employees.
“From a productivity perspective, we spend a third of our time in the workplace collecting and processing data. AI and robotics could all but eliminate this work, freeing us up from time-consuming administration and allowing us to focus on other more creative or rewarding aspects of our jobs. We should stop viewing AI as an existential threat to employment. AI technology cannot replace people but it can work alongside humans to boost business productivity and make employees’ lives easier.”
Mark Barrenechea, CEO of OpenText added: “How will these investments pay off for the enterprise? Equipped with AI and cognitive systems, big data analytics, and machine learning, the insights-driven Intelligent Enterprise will outpace its competition. Better data will mean better algorithms, and better algorithms will mean better data, and so on. We will become much more productive as we offload collecting and processing data to AI systems.”
OpenText research offers a snapshot of UK attitudes towards AI
Research from the leaders in enterprise information management, OpenText, revealed the extent to which UK citizens think artificial intelligence (AI) and robot technology will impact aspects of their everyday lives – particularly in the workplace.
The survey of 2,000 UK respondents revealed growing optimism around robots in the workplace. Over one third (35%) of UK citizens would feel comfortable working alongside a robot while almost a quarter (23%) would actively encourage their employer to hire robot colleagues if it would mean a reduction in their day-to-day admin tasks.
The research also revealed fewer concerns about robots taking over jobs completely. While the 2017 survey revealed that a quarter of UK consumers (25%) believed their job could be replaced by a robot in the next 10 years, this dropped to one in five (21%) in this latest survey. Furthermore, almost two thirds (60%) of respondents did not think a robot would ever take over their jobs, suggesting a greater inclination to work alongside – and not be replaced by – robot technology.
