Economy


Artificial Intelligence Poised to Accelerate China’s Annual Growth Rate from 6.3 percent to 7.9 percent by 2035, Finds New Research from Accenture

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DALIAN, China--(BUSINESS WIRE)--New research from Accenture (NYSE:ACN) reveals that artificial intelligence (AI) could accelerate China's economic growth rate from 6.3 percent to 7.9 percent by 2035, by transforming the nature of work and opening new sources of value and growth. As a new factor of production, Accenture finds that AI is poised to boost China's gross value added (GVA) by USD $7,111 billion by 2035. The report also finds that AI has the potential to boost China's labor productivity by 27 percent by 2035 - driven by innovative AI technologies that enable people to make more efficient use of their time. Accenture's findings also reveal that Manufacturing, Agriculture, Forestry and Fishing, and Wholesale and Retail are the three industry sectors that will benefit most from the application of AI in China, with boosts in their annual GVA growth rates by 2 percentage points, 1.8 percentage points and 1.7 percentage points respectively by 2035.


Artificial Intelligence Poised to Accelerate China's Annual Growth Rate from 6.3 percent to 7.9 percent by 2035, Finds New Research from Accenture

#artificialintelligence

New research from Accenture (NYSE:ACN) reveals that artificial intelligence (AI) could accelerate China's economic growth rate from 6.3 percent to 7.9 percent by 2035, by transforming the nature of work and opening new sources of value and growth. AI is poised to boost China's GVA by USD $7,111 billion by 2035 (Graphic: Business Wire) The report, titled "How Artificial Intelligence Can Drive China's Growth," explores new insights into AI and its impact on China's economy. As a new factor of production, Accenture finds that AI is poised to boost China's gross value added (GVA) by USD $7,111 billion by 2035. Accenture's findings also reveal that Manufacturing, Agriculture, Forestry and Fishing, and Wholesale and Retail are the three industry sectors that will benefit most from the application of AI in China, with boosts in their annual GVA growth rates by 2 percentage points, 1.8 percentage points and 1.7 percentage points respectively by 2035.


Why "How many jobs will be killed by AI?" is the wrong question

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Job growth has continued because there has been a rapid rise in service sector physical jobs like home health aide or short order cook. A UBI is thus both less targeted and more expensive that the EITC, but the real problem is that a UBI doesn't give people any clear reason to get off the sidelines of the economy. Tech progress has changed our economy a lot over the past generation, and will change it even more quickly in the years to come. Instead of trying to prepare for a jobless future, we should instead be preparing for one that's a turbocharged version of what we already have: a job creation engine that has shifted into a lower gear, and a large number of people tempted to sit on the sidelines rather than contributing their skills to the economy.


PwC predicts robo-economist could make firm most accurate forecaster on market - BelfastTelegraph.co.uk

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PwC is on the cusp of launching a robo-economist that could make the company the "most accurate" economic forecaster on the market. It discovered the AI's "incredible accuracy" after testing to see if the machine could pinpoint historic GDP results without knowing the outcome. But while Jonathan Gillham, PwC's director of economics, joked that the AI had already started to supersede his job, the firm said there were no plans to replace staff with automation and the program would work alongside human economists. "We pretended five years ago what we would have forecast if we didn't know the number, and the machine learning process that we have developed has predicted it with incredible accuracy.


Job Losses Hurt How A Community's Children Perform In School, Study Says

International Business Times

Plenty of research has documented the adverse impact of a parent's sudden job loss on the average child, in terms of mental health and economic prospects. A 1 percent sudden statewide loss in jobs affects 1.5 percent of students directly -- and indirectly led the remaining 98.5 percent of students to experience "learning losses ... that are about one-third the size of those experienced by children whose parents lose jobs." More specifically, that 1 percent job loss lowered the state's eighth-grade math test scores by 0.057 standard deviations, an amount roughly the same size as the increase that results from intervention efforts intended to boost test scores. "What I see as one of the main points in our study is that the effects on people who lost their job or the children of people who lost their jobs -- there are spillover effects," said Dania Francis, one of the study's authors and an assistant professor of economics at the University of Massachusetts at Amherst.



Artificial Intelligence Will Enable 38% Profit Gains By 2035

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Today Accenture Research and Frontier Economics published How AI Boosts Industry Profits and Innovation. The report is downloadable here (28 pp., PDF, no opt-in).The research compares the economic growth rates of 16 industries, projecting the impact of Artifical Intelligence (AI) on global economic growth through 2035. One of the reports' noteworthy findings is that AI has the potential to increase economic growth rates by a weighted average of 1.7% across all industries through 2035. The bottom line is that AI has the potential to boost profitability an average of 38% by 2035 and lead to an economic boost of $14T across 16 industries in 12 economies by 2035.


Accenture Report: Artificial Intelligence Has Potential to Increase Corporate Profitability in 16 Industries by an Average of 38 Percent by 2035

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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. Measure your return on algorithms – Unlike traditional assets that depreciate over time, AI assets gain value as time passes so CFOs will need new financial metrics to properly assess the "Return on AI," which could include the value generated from each algorithm or a combination of initial outlay and ongoing costs. Annual growth rates by 2035 of gross value added (a close approximation of GDP), comparing baseline growth to an artificial intelligence scenario where AI has been absorbed into a sector's economic processes Regardless of industry, companies now have a significant opportunity to apply AI and invent new business capabilities for growth, profitability and sustainability. Measure your return on algorithms – Unlike traditional assets that depreciate over time, AI assets gain value as time passes so CFOs will need new financial metrics to properly assess the "Return on AI," which could include the value generated from each algorithm or a combination of initial outlay and ongoing costs.


The impact of artificial intelligence on the future of jobs

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MARGINALIA spoke with Cameron to explore PwC's latest research, UK Economic Outlook, and his views on the impact of artificial intelligence on the future of work. Euan Cameron: We found that around 30% of existing UK jobs are susceptible to automation from robotics and artificial intelligence by the early 2030s. For example, we found that jobs with a high proportion of male workers (35%), particularly those of men with lower levels of education, are at higher potential risk of automation than jobs with a high proportion of female workers (26%). The impact is quite remarkable – self-monitoring machines, perhaps on the production line or consumer facing (like vending machines), learn the high and low demand periods, call for maintenance, and order their own stock.


AI killed 800,000 jobs in the U.K., but created 3.5 million new ones VentureBeat AI

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Then we learned that Foxconn plans to automate 30 percent of its factory workforce by 2018. In the U.K., for example, AI technology has replaced 800,000 lower-skilled jobs with 3.5 million new ones, which pay on average £10,000 more than the jobs they replace. There will also be a greater need for humans who specialize in abstract thinking, creative tasks, and problem solving, leading to job growth in those areas. By weeding out the easy-to-solve queries early on, chatbots will ensure that their human teammates have the maximum time and the data necessary to address more complicated customer problems efficiently.