Today artificial intelligence is capturing the hopes, curiosity, and fears of people worldwide. From our political leaders to celebrities and common people, we face one question about how technological disruption will impact the world’s economic growth and affect workers’ livelihoods. We are once again facing the machine question and the proposition and that this time it will be different. Switching to the internet today, we see people like Elon Musk offering apocalyptic warnings about the perils of coming autonomous machines. On the other hand, savy entrepreneurs salivate at the bounty, and increases in productivity AI seems to promise. Savior or demon well despite the mixed reviews, there is a global accord that artificial intelligence can boost world economic growth and productivity. Well, taken, however, it is that no one can ignore the impacts bought by Artificial intelligence in every aspect of life that cannot be ignored.
As per the study conducted by the McKinsey Global Institute’s on the effect of AI in the global economy, Machine learning can contribute 16 percent – approximately $13 trillion to existing global economic production by 2030, an estimated annual boost to the economic growth of 1.2 percent from now until 2030. Taken along with a recent report by PwC, which found that advancements in AI and applications will increment worldwide Gross domestic product by up to 14% between now and 2030, the McKinsey report offers more proof that AI is ready to convey enormous financial open doors for those organizations and laborers best situated. Below is a summary of how AI has been impacting world economic growth.
Increase in the total world economy GDP:
As per the IDC report, the other departments of Artificial intelligence, which include information technology, programming services, and artificial media communication, were to reach $3.8 trillion in 2016 and $3.7 trillion in 2015. As this percentage is growing rapidly, we can say that artificial intelligence has been blessing the world economy for a long. In 2004 this GDP rate was only 2% while in 1992 it was only 0.5%. The masters of economy predict that if technology keeps on this accelerating at this rate, it is possible that the percentage increase by 8% in 2026 or 2037, which means that the world economy will be hitting $12 trillion in 2037. If we look into this, we can see a very significant amount of potential in technological development because it has a very promising future for technology firms and, in particular, technology start-ups and start-up ecosystems.
Impact in public markets:
A clear indicator that we are in the midst of the transition between the Industrial Age and the digital revolution is the significant landmark achieved in July 2016, when the world’s five biggest listed corporations became all technology businesses by market capitalization. These companies included Apple, Google, Microsoft, Amazon, and Facebook. These companies and their market value were shared, and it was seen that five of them were in the list of the world’s leading companies when it comes to market caps. Facebook making its spot on the third rank, is proof that the world economy is In the midst of a momentous shift, and there will be a time when Artificial Intelligence will be ruling the market caps.
Impact on international trade and economic growth:
To the degree that AI enhances economic growth, it can promote greater global growth and create new international trading incentives. It is clear that AI can change foreign trade and how companies operate, how communities are governed, how people perform their everyday lives, and how the productivity of a country is calculated. In certain industries, the application of Machine learning and artificial intelligence is a number game. Robots, who can work without delay all day long, are more efficient and profitable for businesses than human workers. A spike in unemployment will lead to a loss of customer spending, which might, in essence, place businesses at risk, but In the middle of this fear that the rate of unemployment will increase, some people assume that the actual effect of AI on foreign trade will be dramatically positive. However, it will take a while for economies to adopt and efficiently use emerging AI innovations that require substantial funding, access to professional people, and restructuring of market practices.
Artificial intelligence plays an enormously vital role in both human life and our economy. AI is seen by many as a catalyst for efficiency and economic development. It could improve productivity how things are done and massively enhance the decision-making process by evaluating large scale businesses. It also contributes to the development, economies, and systems. A number of research point out that AI would have a substantial economic impact. Study launched by consultancy firm Accenture, representing 12 developed economies, which together generate more than 0.5 percent of the world’s economic production, forecasting that AI can double by 2035. The annual average of global economic activity. AI will fuel this acceleration by raising the work productivity by 40% and enabling more effective time-based utilization of the workforce. The economy will also benefit from the diffusion of creativity, which will affect the economy.