At least one type of artificial intelligence (AI) technology is set to be utilized by 70% of businesses by 2030 according to a new report, Notes from the frontier: Modeling the impact of AI on the world economy, by management consulting firm McKinsey.
The increased adoption of AI technology is set to bring with it huge growth to the global economy, as the same study predicted it would be worth around $13 trillion by the same year. This is expected to amount to around 1.2% additional GDP growth per year.
However, the report also noted the drawbacks that will come with the utilization of the technology. Increased use of AI in business has the potential to lead to a vast performance gap between frontrunners and nonadopters, as well as widening the economic gap between developed and developing countries.
The report also discussed the effects of AI on employment, probably the biggest concern people have about the mass adoption of the tech.
Visit Innovation Enterprise's DataX Summit in New York on December 12–13, 2018
"Policy makers will need to show bold leadership to overcome understandable discomfort among citizens about the perceived threat to their jobs as automation takes hold," McKinsey noted. "Companies will also be important actors in searching for solutions on the mammoth task of skilling and reskilling people to work with AI."
The report added: "Individuals will need to adjust to a new world in which job turnover could be more frequent, they might have to transition to new types of employment, and they likely must continually refresh and update their skills to match the needs of a dynamically changing job market."
McKinsey concluded that new jobs driven by investment in AI could augment employment by around 5% by 2030, as well as improving productivity by about 10%.