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How AI is impacting different industrial sectors?

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The impact of AI shortly is estimated to touch every major industrial sector. As we are somehow interconnected and not a single industry is standing without support from other industrial avenues. The acceptance of Artificial Intelligence in one industry automatically creates a chain reaction among other sectors to evolve and get up to date with the change.

As per a report by PwC on the macroeconomic impact of Artificial intelligence technical report, it states the revenues project by Artificial Intelligence in a rapidly growing market is expected to be $50 billion by 2025 with an effect to be transformative on consumer, enterprise, and government markets around the world.

The revolution of the industrial sector also impacts the change in the worldwide workforce, worldwide -GDP, and also economic prospects.

As per the survey conducted by McKinsey, the economic impact of Artificial Intelligence states it in trillion U.S dollars and got a higher estimation in Retail with 80% whereas, in agriculture, the oil and energy sector is going to be only 20%. The lower estimation of such impact is calculated to be in the range from 4% to 1%.

The economic impact of AI in different sectors
Source:- McKinsey

In another survey, the sector has been categorized as per GDP gains, associated with productivity. As per the PwC report, the global GDP (Gross domestic product) is estimated to be $114 trillion by 2030, an increase from $75 trillion in 2016.

The productivity gain of AI is economically impacted by automating business processes, existing labor force being augmented with AI technologies such as autonomous or augmented intelligence, or assisted.

As per a study conducted by both Accenture and McKinsey to analyze the AI impact on the global economy, the key area was the productivity effects of AI. As per McKinsey, AI is considered to be a long-run growth trend in the economic growth potential whereas Accenture considers the effect of AI will impact the economic growth more firmly, in the long run, depending on their forecast.

As a result of both, the firm’s statement establishes AI to be a leading torch-bearer irrespective of the cons related to the technology.

In my opinion, the survey result clearly shows the market capture capability of AI and the influencing dominance in the different industrial sectors that got little to do with technology. The usage and the estimated GDP growth also show the AI reliability as the PWC report suggests that the major impact on GDP is due to the increase in productivity.

Source:- PwC (The macroeconomic impact of artificial intelligence), Statista (Artificial Intelligence).

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