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Artificial Intelligence has completely transformed the world from what it was even a decade ago. It is a rapidly developing field, which has been incorporated into every single industry. Industries have enjoyed a greater revenue and increased ease owing to Artificial Intelligence. Moreover, AI will continue to grow and make life easy for all and sundry, both at the workers’ and organizational levels. To put this growth in numbers, the global market growth of Artificial Intelligence is projected to be at USD 266.92 by 2027. Subsequently, we will see overall growth in the world economy.
According to a report, Artificial Intelligence could contribute a whopping 15.7 trillion dollars to the world economy. This is a huge leap from where we stand today. This will be possible because more and more businesses embrace artificial intelligence and incorporate it into their tasks. Experts suggest that the fast-developing field of artificial intelligence will up the GDP by 14% by 2030, thus positively impacting the world economy. This increase will be largely driven by:
- The increased productivity in businesses, especially on the manufacturing front, by automating labor for the quicker performance of repetitive tasks and incorporating robots.
- A boost in consumer demand owing to the availability of better quality products that utilize more of the potential of artificial intelligence.
Labour Productivity
Experts project that the improvements in labor productivity will account for 55% of GDP’s total gains by artificial intelligence till 2030. Thus making it a large factor in the impact of AI on the world economy. And the reason is not very hard to see. Although humans created machines and robots, they have been bested by their own creation on many fronts. And one of these is the field of labor. Exertion tires humans and slows them down. However, with machines, that is not the case. Machines can work long hours without compromising on efficiency and the quality of performance. This is mainly why companies have decided to automate most of their repetitive tasks. Most factories’ workforce largely comprises robots. This does have its repercussions, in that this has caused many to become jobless, but it saves time and cost like no other.
Increased Consumer Demand
When Alexa, an AI-backed virtual assistant, first launched, it gained much traction, much like the robot vacuum cleaner. Both because of the innovative idea and the ease it promised to users. Its popularity grew at an exponential rate. So much so that by 2020 Amazon had sold a whopping 53.9 million units. This example speaks of the potential of new, innovative products in the market. AI is already a large contributor to the GDP, and subsequently, the world economy. But in the coming years, with the advent of new devices incorporating new AI technologies, artificial intelligence’s contribution will grow significantly.
Companies have a better and deeper insight into customer preferences because of the highly powerful AI-backed programs. This allows them to create products tailored for the needs of most, resulting in a boost in sales. These programs are set to get even better in the near future.
Potential Impact of AI Consumption by Sector
The contribution of AI to the world economy is the bigger picture. At a more basic level, let us see how AI consumption will impact different sectors and the major domains that will make more use of it:
Healthcare: 3.7
The major areas that will see more AI use are medical imaging diagnostics, identifying potential pandemics early on, thus containing their spread, and detecting even minor deviations from the baseline in a patient’s health.
Automotive: 3.7
Experts predict AI to help introduce self-driving fleets for ride-sharing and driver-assisted, AI-backed vehicles to become common. Moreover, AI will also help monitor the engine’s help and self-maintain it.
Financial Services: 3.3
AI will help customers access personalized financial planning, better guard their assets from fraud, and ensure that all this is achieved autonomously.
Retail: 3.0
AI will help retailers create personalized products, predict consumer demand to deliver the products on time better, and completely digitize the inventory and delivery management.
Communications, Technology, and Entertainment: 3.1
AI will allow personalized marketing and content creation, in addition to better recommendation programs based on vast media archives, in the near future.
Companies to prepare themselves for the future well in advance. They should research how AI will impact their sector, what technological advancements are being made in their field, and how widely new technologies are being adopted. It would be a wise decision to start investing in AI-backed programs and machines. The long-term advantages of AI are unparalleled.
The AI advancements have picked up momentum and are rapidly transforming industries. A report shows that by 2030, at least 70% of the companies might have adopted AI technology of at least one type. This is a clear indicator that artificial intelligence will be largely driving the world economy in the coming years. It is worth noting that research in the area of artificial intelligence might also be very profitable. Especially considering how much people are ready to pay for new technologies to mass-produce them. The future will be largely automated and hassle-free for humans. Admittedly, this paradigm shift might have its repercussions in terms of a diminishing job market for laborers. But the merits outweigh the disadvantages by a mile.
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