Artificial intelligence is having a significant impact on mainstream business and computing after years of being in the hype cycle. Companies such as Amazon and Netflix have saved billions of dollars a year, and AI is expected to boost the global economy by trillions of dollars over the next several years. Concerns about AI's use remain, however, including security risks and biases it could introduce into hiring and society as a whole as well as bad decisions it might make due to poor underlying data quality. Here's a snapshot of the present and future of AI, told in 11 statistics: That's a 14 percent increase, more than the current economic output of China and India combined, a PwC study projects. Some $6.6 trillion of the boost will come from increased productivity, while $9.1 trillion will arrive as a result of increased economic consumption.
The workforce is rapidly evolving before our eyes: Jobs and skills that exist today may be irrelevant in as few as 18 months. When assessing various threats to their business, including regulation, geopolitical uncertainty, taxes and more, 79% of CEOs expressed concern about the current availability of key skills (up from 53% just seven years ago). By 2022, 75 million jobs will be displaced and 133 million new roles will emerge requiring people to move into new career paths. The tight labor market, coupled with demand for emerging skills, requires enterprises to upskill their talent amidst constant transformation. Emerging digital technologies are creating waves of opportunity and disruption for companies looking to succeed now and in the future.
The future of work is now. Already, we're seeing how technology is revolutionizing the way people work and companies operate. This is driving change across many areas, particularly the workplace and different organizational departments. This change is expected to continue in the coming years, however, there's no time like the present to evaluate which changes are taking place and how they're impacting the world of work. While it's necessary that we think of how jobs and workplaces will look like tomorrow, it's also necessary that we evaluate jobs and workplaces today.
In this paper, we argue that the effects of artificial intelligence (AI) and automation on growth and employment depend to a large extent on institutions and policies. In the first part of the paper we survey the most recent literature to show that AI can spur growth by replacing labor by capital, both in the production of goods and services and in the production of ideas. However, AI may inhibit growth if combined with inappropriate competition policy. In the second part of the paper we discuss the effect of robotization on employment in France over the 1994–2014 period. Based on our empirical analysis on French data, we first show that robotization reduces aggregate employment at the employment zone level, and second that noneducated workers are more negatively affected by robotization than educated workers. This finding suggests that inappropriate labor market and education policies reduce the positive impact that AI and automation could have on employment. This paper borrows unrestrainedly from our article on AI and economic growth, published in Economics and Statistics (Aghion et al., 2019). Artificial Intelligence (AI) is typically defined as the capability of a machine to imitate intelligent human behavior. True, since 1820 our economies have seen several technological revolutions which resulted in the automation of tasks previously performed by labor.
McKinsey, in its report on the impact of AI on the world economy, confirmed that by 2030 AI is expected to gradually add 16% (about US$13 trillion) to the global economic output. AI will annually contribute to efficiency development of around 1.2% between 2020 and 2030, says a McKinsey report based on the simulation models of the impact of AI at the national, sector, organizational, and worker levels. The report is focused on AI adoption of five general classifications of AI technologies: NLP, RPA, and advanced ML, among other things. It was based on a survey conducted from around 3,000 firms and economic information from various organizations, including the World Bank, the United Nations, and the World Economic Forum. Prominent companies and government organizations are prioritizing AI and ML as rising effectiveness and productivity are allowing exponential growth of the worldwide economy.
Over the past four years, the strongest demand for candidates with AI skills hasn't come from IT departments, but from other business units within organizations. That's according to a Gartner report that found that the number of AI jobs posted by IT was less than half of that from other departments, indicating that hiring strategies haven't kept pace with demand in the AI labor market. In total, in July 2015, IT departments published 14,900 listings for AI jobs compared with the 89,895 AI job listings published by other business divisions. In March 2019, the number of AI jobs listed by IT jumped 363% to 68,959, but listings by other departments far surpassed it with 156,294 (up 74% from 2015). Departments recruiting AI talent in high volumes included marketing, sales, customer service, finance, and research and development, which tapped new recruits for things like customer churn modeling, customer profitability analysis, customer segmentation, cross-sell and upsell recommendations, demand planning, and risk management.
While automation and digital technologies are disrupting the workplace as we traditionally know it, it has become imperative for organisations to start reskilling their workforce. Automation and artificial intelligence are not only disrupting the assembly lines but right across the so-called blue-collar jobs. This is mainly because in most instances, artificial intelligence (AI), is actually doing a better job than humans. For example, the use of virtual assistants in the workplace is growing. By 2021, Gartner predicts that 25 percent of digital workers will use a virtual employee assistant on a daily basis.
Automation has become part of the global manufacturing line, where robots take on repetitive jobs, like filling boxes or welding a car frame in the same way, day after day. But what if robots could step away from their limited range of tasks, and start to problem solve in complex operational situations, like spotting a malfunction on the assembly line or identifying a better compound for a part? And how could robots enabled with "deep learning" – where algorithms learn from large amounts of data collected via experience – begin to share insights with other robots, to increase innovation in all kinds of settings, from factories to self-driving cars on the road to early cancer detection and drug discovery in hospitals? These questions are the focus of Preferred Networks, a cutting-edge artificial intelligence company founded in 2014. The Tokyo-based firm, which is worth roughly $2 billion, according to CB Insights, is a symbol of Japan's sweeping strategic innovation initiative, where AI and robotics are viewed as keys to both solving social issues and achieving new economic growth.
Caixabank Research To date, technological change has been key to the economic and social development of the human race. Despite this, the technological revolution that we are currently experiencing, with artificial intelligence (AI) at the helm, is a source of not only wonder but also some misgivings. These misgivings may be due to the new nature of the technologies of the future and the disruptive effects they could have on our economy and society. At the same time, these new technologies could be key to the revival of economic growth that is faltering so much in our European environment. In this first article of the Dossier, we will go over the different channels through which technology can affect the economic environment.