Instead, we should focus on the challenges and opportunities presented by new technology trends, including artificial intelligence, machine learning, and Big Data analytics. He added: "The development of automation enabled by technologies, including robotics and artificial intelligence, brings the promise of higher productivity (and with productivity, economic growth), increased efficiencies, safety, and convenience, but these technologies also raise difficult questions about the broader impact of automation on jobs, skills, wages, and the nature of work itself." It's tempting to view machine learning's evolution as a slam dunk for the robots As machine learning-based skills approach those of human beings, it's tempting to view their evolution as a slam dunk for the robots. And over time machine learning and other advanced technologies will create new growth opportunities and jobs for workers with updated skills.
In principle, the launch of, say, a smartphone app that compares prices at petrol stations ought to be a boon to consumers. The rapid reaction afforded by algorithmic pricing means sellers can co-ordinate price rises more quickly. Companies might need only seconds, and not days, to settle on a higher price, note Messrs Ezrachi and Stucke. For instance, the more consumers are pushed to deal directly with price-bots (to thwart the transparency that allows rival sellers to collude), the more the algorithms will learn about the characteristics of individual customers.
Almost half of these economic gains will accrue to China, where AI is projected to give the economy a 26% boost over the next 13 years--the equivalent of an extra $7 trillion in GDP. North America can expect a 14.5% increase in GDP, worth $3.7 trillion. PwC's study defines four types of AI: automated intelligence, which performs tasks on its own; assisted intelligence, which helps people perform tasks faster and better; augmented intelligence, which helps people make better decisions; and autonomous intelligence, which automates decision-making entirely. A large part of the forecast GDP gains--$6.6 trillion--are expected to come from increased labor productivity, with businesses automating processes or using AI to assist their existing workforce.
This boost is powered by the growing capabilities of machine learning and artificial intelligence. Before answering this question, it is important to highlight the difference between automation and real artificial intelligence, although both terms are used interchangeably sometimes. AI for banks and other financial institutions is expected to trigger similar outcomes to those recorded in e-commerce, which includes better customization of the experience, more efficiency, increased productivity and overall cost reduction. These include personalized financial advice, fraud detection mechanisms, investment decisions and blockchain.
There is growing polarization of labor-market opportunities between high- and low-skill jobs, unemployment and underemployment especially among young people, stagnating incomes for a large proportion of households, and income inequality. Challenges in labor markets are growing, household incomes in advanced economies have been stagnating, and there are increasing skill gaps among workers. The decline is due in part to the growth of corporate profits as a share of national income, rising capital returns to technology investments, lower returns to labor from increased trade, rising rent incomes from home ownership, and increased depreciation on capital. In a McKinsey survey of young people and employers in nine countries, 40 percent of employers said lack of skills was the main reason for entry-level job vacancies.
The truth is somewhere in-between; while it is unlikely to entirely eliminate many occupations over the next ten years, AI and machine learning will impact almost all industries, jobs and business to varying degrees. These systems dramatically improving performance, save time, and free up your expensive human talent to focus on strategic tasks. McKinsey estimates that 59 percent of all manufacturing activities could be automated, while a whopping 73 percent percent of the activities that food service workers perform have the potential for automation. Forrester Research expects "enterprise interest in, and use of, AI to increase as software vendors roll out AI platforms and build AI capabilities into applications," as "enterprises that plan to invest in AI expect to improve customer experiences, improve products and services, and disrupt their industry with new business models."
Artificial intelligence technologies could contribute more than $15tn to the world economy by 2030, according to a new report published by Price Waterhouse Coopers. Around $6.6tn of new profits will be gained from increased productivity arising from businesses increasingly automate processes and augment their workforces with artificial Intelligence (AI) technologies. Augmented intelligence – helping people to make better decisions. Autonomous intelligence – automating decision making processes without human intervention.
The law of supply and demand tells us that as labor gets scarce, wages should rise. My colleague Chris Matthews writes that the answer may lie in the Wage Growth Tracker (see above), an alternative gauge produced by the Federal Reserve's Atlanta bank. It substantiates what a lot of people have suspected: that older, higher-paid workers are leaving the workforce and being replaced with cheaper, younger workers who hold little bargaining strength when they can be quickly replaced by automation. Recent employment growth has been bringing these workers back to the labor market, but their power to negotiate higher wages remains weak.
Businesses that successfully apply artificial intelligence (AI) could increase profitability by an average of 38 percent by 2035, according to a new report from Accenture. The research compared the economic growth rates of 16 industries in 2035 in a baseline scenario showing current assumptions of expected growth, to an AI scenario showing expected growth with AI integrated into economic processes, finding that AI has the potential to increase economic growth rates by a weighted average of 1.7 percentage points. Of the industries studied, information and communication, manufacturing and financial services are the three sectors that will see the highest annual GVA growth rates in an AI scenario, with 4.8 percent, 4.4 percent and 4.3 percent respectively by 2035. "By optimizing processes with intelligent automation, augmenting human labor and physical capital, and propelling new innovations, AI can drive dramatic and long lasting profitability and economic growth."