According to the most recent McKinsey research on technology, between 2030 and 2060, 50% of the labor activities that are done today will be automated.
The world has been enthralled with the latest wave of artificial intelligence (AI) technology because it can write language, make images, and analyze medical data. Applications like ChatGPT are powered by generative AI, and while users play with it, others are considering how the technology may affect their professions, companies, and society as a whole.
In a report, the consulting firm McKinsey outlines the potential economic benefits of generative AI. What should be remembered most from it is this:
The productivity gains from generative AI have the potential to boost the world economy by $2.6 trillion to $4.4 trillion a year.
To put things in perspective, the UK had a $3.1 trillion GDP in 2021. According to McKinsey, the value that generative AI might bring to the world economy is practically the same as creating a brand-new nation the size and productivity of the United Kingdom.
McKinsey looked at 2,100 specific job activities and 850 occupations in 47 nations, which accounts for more than 80% of the world workforce, to arrive at its conclusions.
Four domains will contribute around 75% of the value that generative AI can provide: software engineering, customer operations, marketing and sales, and research and development.
McKinsey investigated 63 use examples in 16 different business domains where generative AI can be applied to solve particular business problems. The technology’s capacity to facilitate customer contacts, provide original material for marketing and sales, write computer code, and help with data crunching for research and development are among the areas where one or more measurable results were observed. According to the report, the industry sectors most affected by generative AI include finance, high-tech, and life sciences.
Automating tasks that currently take up 60 to 70 percent of an employee’s time could be possible with the help of generative AI.
Generative AI will have a greater impact on knowledge work—particularly on knowledge work that was previously thought to be less amenable to automation, such as decision-making and cooperation. Generic artificial intelligence (AI) will automate cognitive functions like writing prose or making visuals, while traditional technological automation has up until now concentrated on repetitive jobs and physical activities.
According to the analysis, half of today’s labor tasks will be automated between 2030 and 2060, with 2045 serving as the halfway point. This is approximately ten years earlier than McKinsey’s past projections for automation, robots, and general artificial intelligence.
Does this imply that there will be a significant loss of jobs? Not according to the report’s authors, who claim that generative AI would enable jobs to be completed more quickly and accurately. According to the analysis, that corresponds to an increase in productivity growth of between 0.2 and 3.3 percentage points each year for the entire global economy.
However, as the research states, “some workers will change occupations, and others will need support in learning new skills.” Generative AI has the potential to significantly boost economic growth and promote a more sustainable, inclusive society if worker transitions and other hazards are well controlled.
Though the technology is promising, issues with risk management, labor skills, and business procedures still need to be resolved as the generative AI era gets started.
Leaders in business and society face significant difficulties even as generative AI developments set the stage for a new era of technology. These include controlling the loss of human employment, stopping the spread of false information, getting over prejudices, and making sure that data is protected.
