Artificial Intelligence Will Add 1.2% To Annual GDP Growth Over The Next Decade
4 October, 2018 / Articles
Artificial intelligence (AI) could boost the global economy as much as the steam engine did during the industrial revolution, claims a research institute.
According to the McKinsey Global Institute, AI will add an extra $13tr to global economic activity by 2030. The research organisation predicts 70% of companies will adopt at least one form of AI during this time.
The technology, which uses large data sets to copy human behavior, could also bring about an additional 1.2% to annual GDP growth by 2028.
“Think about how the high-pressure compact steam engine moved beyond the factory, leading to a boom in rail and sea travel,” the report said.
“AI is likely to have such transformative impact, for instance powering a consumer market for genomics and the development of an entirely autonomous road transportation system.”
It may not be good news for everyone. People with repetitive or manual jobs, such as those working in factories or the transport sector, could lose their jobs as a result of computer systems that will be able to undertake tasks faster and more efficiently than humans, the report claims.
Developing countries that may not be able to afford the investment needed to introduce the technology effectively may also lose out on the overall economic boost.
Alex Guillen, Market Manager at Insight UK, said: “Artificial Intelligence paves the way towards creating a next generation workforce, where bots deal with the time-consuming repetitive tasks offer organisations the change to redeploy workers to more engaging and value-creating tasks.
“But as business leaders increase adoption of complex AI, they’re going to look at how to configure the organisation to manage, monitor and support the bots – just like you would people. To be successful, organisations need to have a culture fitting of automation in the same way they need a culture to fit a diverse workforce.
“What organisations need to realise is that technology has and is continuing to transform the way we work. The future will move fast, and this will put a premium on people and organisations who can adapt quickly.”
Speaking on BBC Radio 4’s Today Programme, Mr Haldane warned that a Fourth Industrial Revolution is on the way, driven by artificial intelligence.
The economist, who is also a member of the central bank’s rate-setting committee, said we must learn the “lessons of history” by re-training the workforce to take up new jobs created by technology.
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