Artificial intelligence is set to contribute as much as $15.7 trillion to the global economy in 2030 – more than the combined current output of China and India. And of this, $6.6 trillion will likely to come from increased productivity and $9.1 trillion from consumption-side effects, according to PwC forecasts.
The economic impact of AI will be driven by:
Productivity gains from businesses automating processes (including robots and autonomous vehicles)
Productivity gains from businesses augmenting their existing labour force with AI tech (assisted and augmented intelligence).
Increased consumer demand due to the availability of personalised and/or higher-quality AI-enhanced products and services.
PwC expects consumers will be attracted largely to higher quality and more personalised products and services, while they will also have the opportunity to make better use of their time, if, for example, they no longer had to drive themselves to work. Also, “increased consumption creates a virtuous cycle of more data touchpoints and hence more data, better insights, better products and hence more consumption,” the consultancy reckons.
“The consumer revolution set off by AI opens the way for massive disruption as both established businesses and new entrants drive innovation and develop new business models,” PwC adds.
And AI frontrunners will be able to lean on superior customer insight. “The immediate competitive benefits include an improved ability to tap into consumer preferences, tailor their output to match these individual demands and, in doing so, capture an ever bigger slice of the market.”
Image: Steve Mullins