The rapid growth of artificial intelligence (AI) has sparked a debate about whether it will drive explosive economic growth or if the hype surrounding it is overstated. As we approach the end of 2024, new data and projections reveal significant insights into the potential economic impact of AI technologies.
Growth and forecasts for the AI Market, the current valuation of the worldwide AI market is over $279 billion, and it is projected to increase by more than six times over the following six years, reaching an estimated $1.81 trillion by 2030.
Advances in a number of industries, such as healthcare, banking, and transportation, where AI applications are becoming more and more common, are driving this increase.
A PwC analysis estimates that by 2030, artificial intelligence might enhance the world economy by up to $ 15.7 trillion, or 26% of local economies' GDP.
Possible advantages and difficulties, 83% of businesses say incorporating AI into their business plans is a major priority, and it is predicted that AI will increase employee productivity by up to 40%. Additionally, it is predicted that by 2025, artificial intelligence would generate roughly 97 million new employment in addition to potentially eliminating about 85 million existing ones, for a net increase of roughly 12 million jobs
But there are drawbacks to this transformational potential. Concerns over job displacement are raised by the quick adoption of AI technology, especially in industries that rely significantly on manual labor. Businesses using AI have reportedly saved a considerable amount of money overall by reducing labor cost by an average of 27%. Policymakers must take strong action to support impacted workers as this trend has the potential to worsen already-existing disparities.
In conclusion, is it a two-edged sword? It is evident from examining the evolution of AI and its effects on the economy that, although it has the potential to spur enormous innovation and economic growth, AI also presents serious job and inequality threats. Whether the advantages of AI can be successfully tapped while reducing its drawbacks will be determined in the upcoming years. Existing figures indicate that artificial intelligence will have a significant and wide-ranging impact on the global economy, despite ongoing disagreement about whether it would result in exponential economic growth or just be hype.
