We have reached a significant point in time where every new development in technology is more intelligent and sexier than its predecessor. The times of robots and automation we all grew up watching in movies has actually become real. All this is credited to the innovations graced in the field of artificial intelligence (AI) backed by the human mind.
The alliance of man and machine heralds tremendous potential not only to individuals but also to the global economy and the impact on business is quite visible. Many economists today are predicting that AI will drive an economic growth of more than 4.5% globally. But how this will happen? Here are the answers:
The Rise of Automation
If we look back in time, all the innovations, from steam engines to electricity and the development of computers, there is one thing in common which is automation. AI as a process is a form of automation. From self-driving cars to robots with emotions, everything is done by automating the previous version of the technology. Evidently, we have recently seen the first robot named Sophia to receive a country (Saudi Arabia) citizenship. The time is not far when we would be surrounded by robots everywhere, and perhaps eventually we would also see a community.
AI and Production: Industry 4.0
The world is currently in the midst of the fourth industrial revolution, driven by AI and automation. In manufacturing, robots with AI running in their controllers would revolutionize the complete production process. Not as curvy, but these muscular cousins of Sophia at assembly lines can raise the production and bring drastic efficiency gains — up to 10%. Similar to Android, we are soon going to see a universal operating system for industrial robots and Google is already working on in this area.
Market Structure and Regulations
The advancements of AI in machines and production will be influenced by the attitude of companies and regulators. These companies would compete with one another to stay on the top. Innovation powered by partnerships and government support would provide an impetus to the technological developments. Amicable laws and regulations will not only encourage the companies but also bridge the gap between idea and incorporation. Technology entrepreneur Elon Musk has already concurred the need of regulating AI before it is too late.
All these factors will significantly boost industries globally. However, there remains a question which everyone is talking about. Is AI a threat to humans?
AI has already replaced a lot of jobs and we are seeing how bots are taking over customer care executives. But will it replace workers at factories? The answer is yes, to some extent. The competition between man and machine is going to be intense. However, no matter how hard and intelligently robots work without taking breaks and vacations, they cannot think and generate ideas. This is where humans will always win.
The Economic Gain
AI is becoming vital in different industries worldwide. Not just companies, the government of different countries are now leveraging the immense power of AI to make business processes efficient and deliver innovative outcomes. According to Accenture research report ”AI has the potential to boost rates of profitability by an average of 38 percentage points and could lead to an economic boost of US$14 trillion in additional gross value added (GVA) by 2035”.
The report includes annual growth rates of 12 countries in 2035 with gross value added (a close approximation of GDP), comparing baseline growth in 2035 to an AI scenario where AI has been absorbed into the economy. The US, Finland, and the UK are the top three countries in terms of AI-induced growth rate of 4.6%, 4.1%, and 3.9% respectively.
With these accelerating developments, the world will operate on a new growth engine. A successful collaboration of human intelligence and machine will provide a fillip to economies globally. AI is disruptive and possesses a superhuman ability to perform things. By unleashing the true power of AI, we would be able to witness super economic growth in the times ahead.