Possibly the biggest game changer we are likely to see in the near future is artificial intelligence. Organizations that get on-board the AI train quickly will give themselves a huge advantage as this new technological revolution gathers speed. 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. In addition, the introduction of AI could lead to an economic boost of US$14 trillion in additional gross value added (GVA) across 16 industries in 12 economies. To capitalize on the opportunity, the report identifies seven key strategies for successfully implementing AI that focus on adopting a human-centric approach and taking bold and responsible steps to applying the technology within businesses and organizations.
In the summer of 2006, as President George W. Bush was pressing to make permanent the tax cuts he had pushed through Congress in 2001 and 2003, the Treasury Department published a so-called dynamic analysis that, the administration hoped, would prove the undoubted economic benefits of the extension.
Global IT services and consulting major Accenture on Thursday said artificial intelligence (AI) has the potential to increase India's annual growth rate of gross value added (GVA) by 1.3 percentage points, lifting the country's income by 15% in 2035. A study titled'Rewire for Growth' also estimates that AI could add $957 billion to the Indian economy by changing the nature of work to create better outcome for businesses and the society. "AI's transformative power can be compared to the advent of computing itself, and there's strong early evidence that AI can play a key role in unlocking socio-economic value in India. With the right investments AI can create a flywheel effect'liberating' people to create long-term economic and societal value," said Rekha Menon, senior managing director and chairman of Accenture India. The research was done by Accenture Research in collaboration with Frontier Economics. The report also explores the strength of the country's AI innovation ecosystem relative to other G20 economies across five key pillars -- universities, start-ups, large businesses, policy makers and multi-stakeholder partnerships. To estimate the economic potential of AI, the research was done by comparing two scenarios. First was the expected annual economic growth rate under current assumptions about the future. The second is the AI scenario, which shows expected economic growth once the impact of AI has been absorbed into the economy.
Businesses that successfully apply artificial intelligence could increase profitability by an average of 38% by 2035, according to a new report from Accenture. Furthermore, the introduction of AI could lead to an economic boost of $14 trillion in additional gross value added across 16 industries in 12 economies, the report suggests. "Artificial intelligence will revolutionize how businesses compete and grow, representing an entirely new factor of production that can ignite corporate profitability," explains Paul Daugherty, chief technology and innovation officer for 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. "To realize this significant opportunity, it's critical that businesses act now to develop strategies around AI that put people at the center, and commit to develop responsible AI systems that are aligned to moral and ethical values that will drive positive outcomes and empower people to do what they do best – imagine, create and innovate," noted Daugherty.
Economic growth across the 19-country eurozone in the first quarter of the year risks being revised lower after official figures showed industrial production fell by a greater than anticipated 0.8 percent in March. Eurostat, the European Union's statistics agency, says Thursday that the monthly fall was broad-based, with only energy production posting an increase. It also follows a big 1.2 percent decline in February. The decline was more than the 0.2 percent fall predicted in markets and raises the possibility that the estimate for first-quarter economic growth will be trimmed in a revision due Friday. After all, one of the reasons why the first estimate came in at a strong quarterly rate of 0.6 percent was largely due to a 2.4 percent increase in industrial output in January.