AI, as the name itself, surrounds with tremendous effect with a promising of high growth potentiality, raising the bar and accounted for the limitless opportunity. However, with every new innovative idea, the question related to its productivity in the long run and also the return plays a major role? Let’s say about Google+, or a predecessor of Facebook, Orkut. Being the latest trend, it hardly takes some time to perish or not being in the demand among the consumer. The failure of such technologies is still unknown?
Some of the positive impacts assess by PwC, McKinsey Global Institute and Accenture are: –
- In 2030, it is estimated that AI will impact the global GDP with an increase of 14% whereas in North America it is going to be 14.5% higher.
- The global economy could be fuelled by Automation as a new productive engine so that the gap in economic growth could be bridged.
- The economic growth can be increased by automation in the next 50 years from 0.8% to 1.4%.
- In 2035, the growth rates will be doubled where the growth rate in the USA will increase to 4.6%.
- The productivity and the growth impact induced by AI in the US GDP will be 3.8% and 31% respectively whereas labor productivity will be boosted to 35%.
- In the US, the total GDP will be impacted by 16.9% of Intelligent Automation and 14.1% of Augmentation.
- The high and long-lasting economic growth can be redefined by AI as ‘the new normal’ period where AI has the potentiality to be a new factor in the entire production stage.
- The impact of productivity is 6.7% and consumption is 7.9%.
- The impact on the productivity of direct labour is 4-57%.
- In 2035, the GDP in the US will be 35% higher.
In my opinion, the forecasted growth rate shows the potentiality of such technology, and the rise in productivity, as well as consumption, will increase with day to day investment in the different segments in AI technology. The rise in growth shows a prominent impact on the gross domestic product.
Source:- PwC (The macroeconomic impact of artificial intelligence)