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Recent research shows that people in knowledge work are the biggest victims of the rising popularity that artificial intelligence is currently experiencing. McKinsey, the now world-famous agency in
Recent research shows that people in knowledge work are the biggest victims of the rising popularity that artificial intelligence is currently experiencing.
McKinsey, the now world-famous agency in Flanders, has studied the impact of AI on the labor market. According to the study, this is felt most clearly in the knowledge economy.
While the report isn’t good news for some, the overall message is more about – financial – growth. According to the study, the increasing popularity and use of generative AI could pump between 2.6 and 4.4 trillion US dollars into the global economy annually. According to De Tijd, that’s four to seven times more than Belgium’s GDP.
This amount doesn’t even take into account various applications of non-generative AI, such as image and pattern recognition. According to the consulting company, these can bring in another eleven to seventeen trillion dollars.
There is also talk of an annual increase in labor production worldwide of 0.6 percent over the next two decades. The research examined 63 AI use cases in more than 850 professions. Depending on the implementation of the technology, the expectation of increasing production has always been of this magnitude: between 0.1 and 0.6 percent, annually and over twenty years.
Unsurprisingly, the highest AI-driven sales are expected in high-end tech, followed by retail and banking.
However, there was also less good news, especially for those who do knowledge work, such as in sales or marketing. According to the report, such professions are feeling the hot breath of AI on their necks and are coming under increasing pressure. Tasks that were previously considered impossible to automate. It’s a concern that OpenAI CEO Sam Altman recently shared with the world.
A few years ago, McKinsey estimated that about half of the world’s working time could actually be automated. In the current report, this is between sixty and seventy percent. Jobs will disappear and certain hours will be used differently. According to the study, many people need to retrain or prepare for a completely new job.
Three quarters of the value that generative AI can bring is in four business areas: sales and marketing, customer relations, software development, and research and development. In banks alone, the use of artificial intelligence would increase productivity by 200 to 340 billion US dollars.
McKinsey suspects that this year AI will catch up with humans in tasks involving understanding natural language models. The further transition to automation will be faster in more developed economies with higher wages, where manual labor plays a lesser role.
It’s a striking contrast to earlier stages of technological advancement. From new machines in factories to the steam engines during the industrial revolution and the assembly line in the last century.
Fortunately, the investments that companies are making in AI also mean the creation of new jobs and opportunities. For example, Accenture recently announced that the company plans to double its technology workforce in the near future to keep up with AI.
Source: IT Daily
As an experienced journalist and author, Mary has been reporting on the latest news and trends for over 5 years. With a passion for uncovering the stories behind the headlines, Mary has earned a reputation as a trusted voice in the world of journalism. Her writing style is insightful, engaging and thought-provoking, as she takes a deep dive into the most pressing issues of our time.
