Artificial intelligence is taking the world by storm, influencing the transition from the traditional economy to the AI economy. Although the storm is coming quickly, it is only in its infancy.
Over the next decade, artificial intelligence has the potential to bring $13 trillion to the economy. That said, if business owners act now to sharpen their inclination to learn, there could be endless opportunities for success to be harvested as the AI economy takes off.
By 2030, around 70% of businesses could use some kind of AI technology. It can look like anything from automated online chatbots in place of customer service agents to predictive searches and route destination time optimization on GPS maps. In fact, there is a 16% chance of increasing GDP in local economies through the expansion of AI.
Although AI may have an impact on the futuristic economy, its influence begins today. AI is changing the current labor market as employment needs change, linked to automation and possible job displacement. In addition, product and service innovation is evolving as technology expands into new markets, contributing to increased activity in the global marketplace.
Also see:5 Reasons You Should Consider AI Automation for Small Business
The United States began to dabble in artificial intelligence in 2011 with Google Brain. It aims to bring “the benefits of AI to everyone”. Although Google Brain is still emerging, 2019 brought a federal initiative in the United States to expand AI security regulations and resources.
Additionally, in 2018, the UK government announced its intention to lead the development of ethical AI technology. In fact, the European Union hopes to invest $22.3 billion in AI research by 2020.
Moreover, China has been developing specific regulations for the next wave of AI since 2016. Planning to complete its efforts by 2020, it plans to become the world leader in artificial intelligence by 2030.
Moreover, between 2019 and 2030, artificial intelligence will exponentially increase by 3 to 5 times its current market. As a result, the implementation of artificial intelligence within companies can contribute to a 200% increase in profits.
Overall, it is beneficial to use artificial intelligence. By 2030, non-repetitive jobs with high digital skills will increase by 10%. Positions requiring less digital skills will simultaneously decrease by 10%.
Specifically, global industries need artificial intelligence to increase their profits because AI solutions can help save money. For example, demand forecasting could see a $10 million increase in profit after implementing artificial intelligence, $15 million route optimization, and $20 million predictive maintenance industry. millions of dollars. Along the same lines, AI fleet optimization can reduce manual operation time by up to 30%, dead roads by up to 20%, and service cost time by up to 10%.
On the other hand, integrating AI into manufacturing can reduce inconsistencies in product quality by up to 30%, time spent on scrap and rework by up to 25%, and cost total quality up to 8%. Overall, when businesses adopt AI, there is a net economic benefit.
Countries at the forefront of AI have seen their economic benefits increase by 20-25%. On the other hand, countries that are still developing the technology have already seen a 5-15% increase.
See also:How artificial intelligence will dominate the future of e-commerce
If the integration of artificial intelligence into business operations is so successful, why are the majority of companies still lagging behind?
60-70% of business leaders choose not to or cannot afford to invest in AI. The remaining 20-30% would be tired of investing in new technology or would not have fully committed to the AI transition. Along with this, only 1 in 10 are ahead of the game and will capitalize on innovations.
Despite the awareness and knowledge surrounding AI, the industry continues to struggle in countries lacking technological infrastructure. This trend is seen in countries that focus on maintaining the current status quo rather than capitalizing on innovation. In fact, AI may not add much economic benefit to developing countries as it does in first world civilizations.
Although 70% of businesses worldwide could use at least one type of AI technology by 2030, less than 50% would come from widespread adoption. General limitations that prevent business owners from implementing AI technology are due to lack of data, difficulty in making sense of results, possibility of bias, and inability to teach machines.
With the help of artificial intelligence, 250 to 280 million new jobs could be created worldwide. Think about the big picture, define your success, and learn as you go to integrate AI into your business. Learn more below to find out how to prepare your business for the AI Economy.
