For a company or a business to make profits, there should be some measures to minimize the cost of operations. All the factors of production should as well be involved correctly. This is the same thing that happens in the economy as a whole. If the factors of production are involved the right way, there’s a promise for economic growth. Over time, businesses have been struggling due to some economic and political factors. They have struggled for a long time to increase capital investment and even labor to scale their growth. Although labor and investments have been on the use previously to level growth in the economy, they are no longer able to sustain growth in most of the economies. With the advancement in technology and all the promises that we are getting, economies are getting to a point where Artificial Intelligence is at the core of every economic growth.
Some of the financial technology experts argue that AI has the potential to double economic growth by 2035. What this means is that every player in the economy must take swift measures to make sure they don’t miss even a single opportunity. All the policy makers and business leaders must prepare for this and work towards a future with Artificial Intelligence.
The capabilities of AI are immense and it has been projected that by 2025, AI will have added $814 billion to the economy of UK which is expected to increase rates from 2.5 to 3.5%. I bet you can trust this because you have seen vehicles operating independently and trucks that are being driven by one operator. Now Artificial Intelligence is adding directly to the ease of completing tasks.
What is the future of AI?
People think we have seen enough but the reality of the matter is that this is just the beginning. We have to be looking to where AK is headed. The advancement of AI is significant and there’s a lot to expect. We have just seen the yellow rays of morning sun. I can assure you that there are a couple of other things that we should bear in mind and start looking at to be sure we understand every bit of AI and how it can affect growth in the near future.
We can expect that there will be more advancement to mimic human capabilities which may later add directly to the ease of doing things. We are expecting a complete advancement in performance which we think will be a contributing factor for growth.
However, there’s a lot that still remains far away from reality. The main challenge is the inability to develop devices with the computing powers to interpret complicated responses like emotions. It may take time to reach full AI but we expect some practical AI applications and devices coming in to help people in one way or the other.
Why AI is the future of Growth
Fuel for growth
The fact is that AI is a combination of several technologies that may fuel the economy in one way or the other. Different technologies are advanced to enable machines to sense, comprehend and act and even learn some things to facilitate human activities. Traditionally, there has been a marked decline in the ability of traditional levels of production including capital, investment and labor to scale economic growth. Today, AI is a new factor of production and for that reason, it has the potential to introduce new sources of growth. This changes the way work is done and reinforcing the role of people in scaling business growth. AI will promote economic growth in the next few years by changing the nature of work and creating a new and intact relationship between humans and technology. In terms of how AI will impact growth and most importantly increase profitability I much bigger. As I have already stated, AI functions as a new factor of production.
This is the other way that AI will boost growth and productivity. It will with ease help create a new virtual workforce. People will turn into using warehouse robots along with human workers which can increase productivity. It can as well help use an AI platform to handle customer queries.
Labor and capital augmentation
AI will at the same time complement and enhance the ability of the existing workforce. It is very easy to use AI to review millions of publications about emerging risks to help insurance underwriters make better decisions.
The innovations in this area will spread in different sectors. With the existing measures such as autonomous vehicles, it will be easy to reduce tasks such as banking and shopping. It will free up a lot of time that people would otherwise use to do the same.
The fact is that there are some of the industries that will benefit from AI more than the others. There’s a report that AI will have more impact on healthcare and retail. It is expected that healthcare may see 55% in growth and 59% in retail. The other industries that may benefit from these are the financial sector and communications with 31% and 17% respectively. Labor intensive sectors such as healthcare and retail AI will impact significantly complementing human workforce. This will make people more productive over time. The human workforce will at the same time have a good time to focus on critical tasks.