The wide applicability of AI in different industries and sector are driving business growth. With this growth and development opportunities, Economists are predicting that AI will act as furl for overall economic growth.
Artificial intelligence is changing the way we live, work, interact and do business. It enhances people's efficiency to do more work with less time, effort and resources. Artificial intelligence is the combination of various tools and machines that has an ability to sense, understand, act and learn from its mistake to increase its own capability or to augment human ability to do work in more efficient manner.
What is economic growth?
Economic growth is the increase in the money value of goods and services produced in a country within its territory in a financial year. It refers to the increase in the productive capacity of an economy to produce goods and services. When labor and capital are increasing and working more efficiently then it is said that economy is growing.
Economists and researchers believe that AI has the potential to offer many source and opportunity for growth. Let's see few sources that drives economic growth.
AI improves Capital efficiency
Artificial intelligence and robots enhance capital efficiency of an organisation as it optimises the productive capacity, reduce factory downtime ad increase the level of output. AI in collaboration with human workforce increase the productivity of human resource and complete the given tasks more efficiently. It reduces overall cost of production. For example, in manufacturing industry we can see robots are working in assembly line more efficiently and even faster than human and human resource are there to support and instruct them. It enhances workers productivity and save their time for more critical tasks.
Intelligent Automation
We have seen many benefits of automation that lead to growth and success of business. AI-enabled automation technologies are more powerful to solve complex task with the help of algorithms and machine learning. The development in AI supports AI-enabled automation technology support self-learning ability to enhance its growth.
Labor & Capital Augmentation
AI act as drivers to factors of productions to facilitate growth. With its different tools and technologies AI improves labor as well as capital efficiency to increase the level of output. AI enhance the thought process, cognitive ability and decision-making ability of human workforce to identify creative and innovative solutions for various business problems.
Innovation Diffusion
The development in artificial intelligence build an ability to learn and provide more innovative solutions. The more it is diffused in the economy in for different purpose, greater will be its learning ability and it will result in more innovations in economy.
Augment intelligence will double the economic growth
With the augmented intelligence, machines help human resource to complete their complex tasks in few minutes or even few seconds. For example, data analysts can analyse huge data sets in few minutes with the help of machine or AI-enabled tools and technology. This improves the cognitive thinking of human resource facilitate growth in business with innovations.
A report by Accenture shows that artificial intelligence will double the global GDP in the next 20 years. Also, the study reveals that the nature of work and workplace arrangement will dramatically change due to change relationship between man and machine.