AI will boost global economy by more than $15 trillion in 7 years

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Artificial intelligence (AI) could boost the global economy by up to $15.7 trillion by 2030 by making better use of data, according to a Bank of America report first published in Israel.

The report, “Thematic Investing,” was written and prepared by Haim Israel, Head of Global Thematic Investing Research at Bank of America, and was first sent to bankers last month. Israel provided a copy of the report to The Jerusalem Post this week.

According to Israeli forecasts, the global AI market (software, hardware and services) could reach $900 billion by the end of 2026.

AI has been around for about 70 years, but according to Israel, the world is about to experience an AI revolution.

Israel compares the situation to the “iPhone moment” of the early 2000s or the Internet boom of the 1990s. Here are four reasons:

Haim Israel, Global Strategist and Head of Global Thematic Investment Research at Bank of America, said: (Credit: BANK OF AMERICA)

1 – Data Democratization

2 – Unprecedented Mass Adoption

3 – Technical development of warp speed

4 – Rich commercial use cases

‘We are in a crucial moment,’ he said director“This is not a question of technology. This is a revolution.”

His report states that more data is now created in an hour than was created in a year just 20 years ago, and that the rate of global data creation is expected to double every two years. is emphasized. Moreover, with the mass adoption of generative AI, which enables machines to understand natural language and generate human-like interactions and content, society will be able to better and fully utilize the data generated. will be

“ChatGPT reached 1 million users in just 5 days, 1 billion cumulative visits in 3 months, 3x higher adoption rate than TikTok and 10x higher adoption rate than Instagram,” the report said. “Technology is advancing by leaps and bounds. Over the past decade, computing power to train AI datasets has doubled every three months, outpacing Moore’s Law by a factor of six. Over the years, the number of parameters in large language models has grown 1,900 times, and within 10 years, AI models could be a million times more powerful than ChatGPT today.”

Israel is not only developing new generative AI applications at an unprecedented rate, people are rapidly adapting to the way they are used, but humans are generating data themselves at an unprecedented rate. I said yes.

“By the time you finish reading this article, approximately 231 million emails, 6 billion Google searches, 69 million WhatsApp messages have been sent and approximately 500 hours of video uploaded to YouTube. .”

“Data is Knowledge”

According to the report, every person generates about 1.7 megabytes of data every second, which Israel says is equivalent to about 2.5 quintillion bytes of data generated by humans every day.

“Data is knowledge,” Israel emphasized. He added that today people only use about 1% of the data generated. If he can increase that percentage to 2% or 3%, the economic value is immense.

However, this revolution comes with some challenges. One of them is that training a single AI model can emit about 284 tons of carbon dioxide. That’s five times his lifetime emissions for the average car.

“The environmental, social and governance angles are very worrying,” Israel admitted. “The amount of power required to manage all this will grow exponentially.

“But the world will not stop using technology because of its negative impact on the environment,” he added. “The holy grail is what kind of electricity we use and where it comes from.”

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