According to Goldman Sachs Research, breakthroughs in generative artificial intelligence could bring about a fundamental shift in the global economy. The permeation of business and society with tools powered by advances in natural language processing could add 7% to global GDP (about $7 trillion) and 1.5% to productivity over a decade.
Goldman Sachs economist Joseph Briggs said, “There is great uncertainty about the potential of generative AI, but it produces content that is indistinguishable from human-produced output, creating a bridge between humans and machines.” “AI’s ability to break down communication barriers represents a major advance with potentially large macroeconomic impacts.” he wrote in a report by Devesh Kodnani.
The new wave of AI systems could also have a major impact on job markets around the world. The changes in workflows caused by these advances could expose the equivalent of 300 million full-time jobs to automation, write Briggs and Kodnani.
Economists who analyzed a database detailing the task content of more than 900 occupations estimate that about two-thirds of U.S. occupations are exposed to some degree of automation by AI. They further estimate that about a quarter to as much as one-half of the jobs at risk could be displaced. But not all automated jobs lead to layoffs, says the report. “Although the impact of AI on the labor market is likely to be significant, most jobs and industries have only been partially impacted by automation, so AI could complement rather than replace it. higher,” the author writes.
Moreover, jobs lost to automation have historically been offset by the creation of new jobs. The report also found that the emergence of new occupations following technological innovation accounted for most of the long-term employment growth. For example, innovations in information technology have created new professions such as web page designers, software developers, and digital marketing professionals. There was also the added effect of job creation, as the increase in gross income indirectly boosted demand for workers in the service sector in industries such as healthcare, education and food service.
A recent study by economist David Autor, cited in the report, found that 60% of today’s workers are in jobs that didn’t exist in 1940. new positions will be created by, writes our economist.
At the same time, advances in AI are expected to have far-reaching implications for the global enterprise software, healthcare, and financial services industries, according to another Goldman Sachs Research report. As the well-known tech giant poises to roll out its own generative AI tools, the enterprise software industry is poised to move to the internet, mobile and cloud after his computing developments transform the way we operate as a society. You seem to be on a wave of innovation. .
Kash Rangan, Senior US Software Analyst at Goldman Sachs Research, said in the team’s report: This technology is permeating business applications, improving the efficiency of knowledge workers in their day-to-day tasks, helping scientists develop drugs faster, and accelerating the development of software code.
Software companies are enhancing their product portfolios with new generative AI offerings. Software-as-a-service companies, for example, use it to open up opportunities to upsell and cross-sell their products, driving customer retention and expansion, the authors say. They see multiple ways such companies can leverage generative AI for growth: 1) through the release of new products and applications; 2) by charging a premium for AI-integrated products; ) by increasing prices over time as existing products are complemented with AI. Enable functionality and prove its value to your customers. In total, GS Research estimates that the total addressable market for generative AI software is $150 billion, compared to his $685 billion in the global software industry.
From enhancing office productivity and sales efforts, to designing buildings and manufactured parts, to improving patient diagnosis in the medical setting, as more generative AI tools are developed and incorporated into existing software packages and technology platforms. Until then, the team believes businesses across the economy are benefiting. , in the detection of cyber fraud.
There are many unknowns about how generative AI will affect the global economy and society, and it will take time to see results. there are signs.
