Artificial Intelligence to Create Trillions in Economic Growth by 2035

Global BPO firm Accenture says artificial intelligence (AI) will lead to the creation of US$14 trillion in economic growth in 12 major countries by 2035.

If applied properly, AI could stoke up corporate profitability by an average of 38%, according to the company’s latest research report on artificial intelligence.

The report does not examine or predict how many jobs the technology will kill. But, Paul Daugherty, Accenture’s chief technology and innovation officer, suggests to businesses that they ensure their AI strategy ‘puts people at the center’ and does not violate moral and ethical values.

Accenture also said HR officials will have to take up the responsibility of managing AI resources in the same way they manage humans.

The industrial sectors that will be benefited most by AI will be information and communication (ICT), manufacturing, and financial services.

These three sectors alone will add to economies US$6 trillion in gross value added (GVA), a close approximation of gross domestic product (GDP) that accounts for the value of goods and services produced.

In labor-intensive sectors, such as wholesale and retail, AI augments the human workforce, helping businesses become more productive and competent. This combination of man and machine will boost the business profit by a staggering 60%, says the report.

In manufacturing, AI-powered machines will eliminate faulty machines and idle equipment, resulting in dramatic profit increases of 39%.

“It’s clear that organizations in every industry have tremendous opportunities to apply AI to unleash remarkable benefits,” said Mark Purdy, Managing Director at Accenture Research.

“By optimizing processes with intelligent automation, augmenting human labor and physical capital, (….) AI can drive dramatic and long lasting profitability and economic growth.”