Artificial intelligence could be the most revolutionary force affecting productivity in the United States economy, says the president of the Federal Reserve Bank of San Francisco. Positive data showing the US economy is nearing full employment and that inflation is edging higher prompted the US central bank to recently raise interest rates for the second time in three months. Mr Williams also reiterated the US Federal Reserve's plan to "normalise" interest rate movements and said the US had reached a "turning point" in its transition from economic recovery to expansion. "Gradually raising interest rates to bring monetary policy back to normal helps The Fed keep the economy growing at a rate that can be sustained for a longer time," said Mr Williams.
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.
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.
Great human feats are generally accomplished by diverse groups of humans working together. The early days of the technology industry in the "Silicon Valley" were built around rebellion and a desire to be the anti-thesis of the East Coast. And, smart pattern matchers that they were, these early venture capitalists invested in folks who fit their success patterns -- white, male nerds from prestigious universities. There were many stories about inebriated bankers in strip clubs post the crash of 2008 and, more recently, we've heard many a sexual assault story around media men like Roger Ailes and a certain real estate mogul and TV show creator we've all come to know well in the past year.
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.
A few months ago, investment bank JP Morgan made the news by introducing intelligent machines to review financial deals that once kept employees busy for thousands of hours. Yet in his new book Deep Thinking: Where Artificial Intelligence Ends And Human Creativity Begins, he is optimistic about the future of people with skills even as he concedes the inevitability of intelligent machines becoming more prominent. The doctor who relies on diagnostic software, the lawyer who relies on research machines, the logistics manager who works with drones or the customer service manager who works with a chatbot, all of these professionals will be able to work better by complementing their human skills of empathy, of communication and creativity with machine intelligence. At wealth management firm ORO Wealth, for instance, the role of human portfolio advisers who work with intelligent machines is important.
Eurekahedge, a hedge fund data base, said it monitored 23 hedge funds that rely on A.I. In March this year Blackrock, the world's biggest asset manager, said it was relying more on computers to pick stocks. Mr. Ferrucci previously led IBM's development of the Watson computer, a question answering computer system capable of answering questions in a natural language.
AI, as most people now know, has several applications in health technologies, marketing & sales, business analysis and financial services. Artificial intelligence is about replacing human decision making with more sophisticated technologies. Most recently, the California-based robo-advisor, Wealthfront, has added artificial intelligence capabilities to track account activity on its own product and other integrated services such as Venmo, to analyze and understand how account holders are spending, investing and making their financial decisions, in an effort to provide more customized advice to their customers. Sentient Technologies, which has offices in both California and Hong Kong, is using artificial intelligence to continually analyze data and improve investment strategies.
That advice, quoted in Machine, Platform, Crowd, is well followed by Andrew McAfee and Erik Brynjolfsson in their latest business book, which tries to make sense of the "technology surge" that is bewildering so many executives. We are rapidly moving towards what Marc Benioff, chief executive of the cloud computing company Salesforce, calls an "AI-first world". By harvesting vast consumer data sets, platform companies gain an enormous competitive edge. The dominance of platform providers is demonstrated by the startling fact that Apple captured 103.9 per cent of total operating profits made by all mobile device manufacturers in the third quarter of 2016, according to BMO Capital Markets.