Even after concerns from a few in the know Artificial Intelligence (AI) is quite certainly the next big thing in tech as it shows a lot of promise. A variety of claims have been made about it with people going as far as calling it the next trillion dollar industry. Some have gone as far as claiming that those who control it will (potentially) control the future.
Gone are the days when more capital and labour led to increase in economic growth. On the contrary, over the years several big economies have seen their GDP decline. Also, capital efficiency has declined over the past 50 years and productivity has been weak as economies are not able to meet the ever increasing demands of consumerism.
Another crucial factor affecting some economies is the aging of the workforce. Aging of skilled labour and slower birth rates have created a gap between ‘labour required’ and ‘labour available’ in labour-intensive economies. As AI forges new relationships between humans and machines and eventually fuses into every aspect of an economy, a solution to these problems may well be in sight.
Accenture’s analysis of 12 countries that together generate 50 per cent of the world’s economic output indicates that with AI taking over various operations in industries, growth can be revived in stagnant sectors along with creating new value and also redefining jobs with new skill requirements.
What AI can actually do here is combine different technologies that can gather data, which in itself can generate revenue, learn the business model, and create intelligent automation through its virtual agents, cognitive robotics, and recommendation systems, to name a few, which use resources and assets better.
This will leave the labour with more time at hand for activities that can create more value, whereas repetitive and dangerous tasks can be handled by the robots. Integration of Artificial Intelligence (AI) with human intelligence also helps get new business ideas and develop better tools for creating better services and goods. Also, with more data AI is only going to learn at scale and improve over time.
Having said that the future for AI is still difficult to comprehend. People also come with their own shares of fear like machines entirely replacing humans as a workforce. To deal with all that the future generation should be educated and prepared for the eventual and inevitable AI workforce integration. New rules and regulations need to be made that are AI-compatible.
Lastly, as AI is entering the society it’s throwing up ethical challenges which may slow down the growth of AI. Pragmatic codes and practices need to be adopted for this in order to have a viable AI ecosystem.