How #AI Impacts on the global economy: Benefits and challenges

With all the technological advancement over the past few years, Artificial Intelligence (AI) is growing constantly allowing people to use new ways for manufacturing, shipping, and running business that has a huge impact on the global economy. It is expected that AI will be massively used in large scale industries revolutionizing the way business is done over the next decade.

Even today where AI still hasn’t reached the full potential, we can still see a positive impact on the growth of worldwide revenue. It is expected that AI will add around $13 trillion by 2030, which is a 16% higher cumulative GDP than today. This means that AI will boost GDP growth by 1.2$ every year. However, anticipating these changes will not be an easy stage for all industries as some will show struggle with adapting to the new world.

Let’s break down how AI affects certain things in the world in order to understand its impact on the economy.

AI’s impact on countries

This section depends on how well prepared are some countries for infusing their economy with AI. The process of adaptation will be easier for the US and China which are considered top AI prepared countries in the world. It is expected that AI developed countries will add an additional 20 to 25 percent in net economic benefits, and on the other hand, still developing AI countries will get about 5 to 15 percent. This will have a huge impact on every country’s GDP which is why they are pushing AI development.

AI’s impact on companies

There are already businesses that focus on AI development and using technology in order to be more efficient, lower their costs, or become more profitable. Big companies are expected to adapt and fully infuse their businesses with AI tools in the next 5-7 years, as for nonadopters, that stage will be stretched to 2030.

Front-runners are going to double their cash flow over the next decade, and nonadopters might experience a decline in cash flow about 20% which proves the importance of AI adaptation.

AI’s impact on workers

AI will change the industry and the need for employees. The demand for jobs will shift from doing repetitive tasks to jobs that require more digital skills. There is no running away from the fact that automatization and AI will replace some jobs and companies will no longer need people to run their operations. However, the demand for people with digital skills will increase by around 40% as they are needed to keep the entire AI technology running.

The biggest hit will be on repetitive activities that require a low level of digital skills, as they will decline around 30% by 2030. This means that jobs will still be available, only the demand for certain skills will change.

AI will also impact wages, and people who are ready for the change with high digital skills will experience around a 13% salary increase. Obviously, the impact of AI on workers will be significant and might cause disruption in the economy, but if the AI is moving at this pace, the change will not be immediate and people will have time for adaptation.

There is no doubt that AI will shape the future of the worldwide economy and it is becoming one of the biggest trends today. Companies are already spending millions in the preparation process, just so they will be ready when the time comes. It is expected that around 70% of all companies will be using at least one AI technology by 2030 and this pattern will continue to move forward until full AI absorption occurs.

The race between the companies is real, and the quicker your anticipate these changes the better. You must invest in AI technology in order to get the biggest return of investment.There are a lot of economic benefits that come with the use of AI technology and even the top teams in the NBA betting odds are using it to measure their basketball season performances. But there are also some challenges that we need to overcome, the question is are we ready for a change.

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