Artificial Intelligence Poised to Double Annual Economic Growth Rate in 12 Developed Economies & Boost Labor Productivity by ...
September 28 2016 - 3:01AM
Business Wire
Research released today from Accenture (NYSE:ACN) reveals that
artificial intelligence (AI) could double annual economic growth
rates by 2035 by changing the nature of work and spawning a new
relationship between man and machine. The impact of AI technologies
on business is projected to boost labor productivity by up to 40
percent by fundamentally changing the way work is done and
reinforcing the role of people to drive growth in business.
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Annual growth rates by 2035 of gross
value added (a close approximation of GDP), comparing baseline
growth by 2035 to an artificial intelligence scenario where AI has
been absorbed into the economy.
“AI is poised to transform business in ways we’ve not seen since
the impact of computer technology in the late 20th century,” said
Paul Daugherty, chief technology officer, Accenture. “The
combinatorial effect of AI, cloud, sophisticated analytics and
other technologies is already starting to change how work is done
by humans and computers, and how organizations interact with
consumers in startling ways. Our research demonstrates that as AI
matures, it can propel economic growth and potentially serve as a
powerful remedy for stagnant productivity and labor shortages of
recent decades.”
The Accenture Institute for High Performance, in collaboration with Frontier
Economics, modeled the impact of AI
for 12 developed economies that together generate more than 50
percent of the world’s economic output. The research compared the
size of each country’s economy in 2035 in a baseline scenario,
which shows expected economic growth under current assumptions and
an AI scenario, which shows expected growth once the impact of AI
has been absorbed into the economy. AI was found to yield the
highest economic benefits for the United States, increasing its
annual growth rate from 2.6 percent to 4.6 percent by 2035,
translating to an additional USD $8.3 trillion in gross value added
(GVA). In the United Kingdom, AI could add an additional USD $814
billion to the economy by 2035, increasing the annual growth rate
of GVA from 2.5 to 3.9 percent. Japan has the potential to more
than triple its annual rate of GVA growth by 2035, and Finland,
Sweden, the Netherlands, Germany and Austria could see their growth
rates double.
The potential to significantly boost the productivity of labor
in developed economies will be driven by innovative AI technologies
that enable people to make more efficient use of their time and do
what humans do best – create, imagine and innovate new things. The
productivity increase dramatically reduces the number of years
required for the 12 analyzed countries to double in size. This
“doubling time” is an indicator of economic development and the
results are primarily driven by a country’s ability to diffuse
technological innovations into its wider economic
infrastructure.
To fulfill the promise of AI as a new factor of production that
can reignite growth, Accenture recommends the following steps be
taken to help navigate the complexity of issues:
- Prepare the next generation –
integrate human intelligence with machine intelligence so they can
successfully co-exist in a two-way learning relationship and
reevaluate the type of knowledge and skills required for the
future.
- Encourage AI-powered regulation
– update and create adaptive, self-improving laws to close the gap
between the pace of technological change and the pace of regulatory
response.
- Advocate a code of ethics for AI
– ethical debates should be supplemented by tangible standards and
best practices in the development and use of intelligent
machines.
- Address the redistribution
effects – policymakers should highlight how AI can result in
tangible benefits and preemptively address any perceived downsides
of AI, helping groups disproportionately affected by changes of
employment and incomes.
“Artificial intelligence heralds dramatic potential for growth
for both the economy and for humans,” said Mark Purdy, managing
director – Economic Research, Accenture Institute for High
Performance. “Our research strongly shows that AI can unleash
remarkable benefits across countries, countering slow economic
growth and lagging productivity. To fulfill the promise of AI,
relevant stakeholders must be thoroughly prepared – intellectually,
technologically, politically, ethically and socially - to address
the benefits and challenges that can arise as artificial
intelligence becomes more integrated in our daily lives.”
The research report, ‘Why Artificial Intelligence is the Future
of Growth,’ can be accessed at
http://www.accenture.com/futureofAI.
For more information on the Accenture Institute of High
Performance, visit
www.accenture.com/us-en/institute-for-high-performance.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 375,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
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AccentureOriana Branon, + 1 415 537
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