In the 1950s, John McCarthy invented the term “Artificial Intelligence” to represent a computational entity that could surpass the limits of code and learn tasks that would typically be individual to humans. AI has now developed into a phenomenon that seems to know no bounds, leaving the world both in awe and caution with its progress.
What are the main effects of AI?
AI has created a new wave of supply-side growth - by acting as a stimulant of productivity, machines can lead to greater efficiency and allocation of time. The consulting company, Accenture, predicts that AI could double global economic growth, as AI helps to produce a 40% increase in labour productivity by performing manual/arduous tasks that are inefficient and time-consuming, instead of humans. The creation of a digital labour force emphasises how this new wave of AI is evidence of a technological revolution. PwC predicts that the global GDP may increase up to 14.7% by 2030, if we focus upon the development of AI.
How could AI be used in business?
AI has already obtained a pivotal role in the data management of business, the mass of data produced and consumed from 2010 and 2020 has increased by 5000%. As new technologies rise, companies can be more efficient with utilising and gathering what is important to make the most vital economic decision to increase profits and growth. Accenture reported that 84% of C-suite[i] executives have considered using AI to improve productivity and efficiency affecting the growth of the AI market which is said to have an annual growth rate of 40.2%. AI has especially emerged in service sector companies by: improving & analysing customer service (via a chatbot), product recommendation and segmenting audiences through personalised advertisements.
What is the impact of AI on medicine?
Healthcare AI has helped to minimise marginal medical errors before they become critical through the analysis of large data sets, diagnostics and pattern recognition - ultimately resulting in an optimal medical outcome. Due to its pattern recognition, AI can effectively aid in the drug discovery process by developing ideas using previous research and studies that doctors may not be able to perceive. AI has also been effective in the lab, as it amplifies the use of medical imaging such as MRI leading to radiologists making life-determining decisions more efficiently and decisively. Integrating AI into healthcare can also improve patient utility; chatbots provide answers to extensive medical inquiries and in an HIMMS conference in 2023, AI was discussed as an affordable method to help those with poor access to healthcare.
Does AI have any disadvantages?
From a cynical perspective, the implementation of AI (although prosperous for the economy), could lead to unnecessary changes with regards to employment; as AI continues to develop, it becomes inevitable that capital will replace human labour. Bruegel (a thinktank) predicts that within 20 years there is a possibility that 54% of jobs are computerised, reflecting how job polarization[ii] will also become more apparent in the future. Now, AI is also extremely costly to develop and implement in different sectors of the economy; one of the issues with AI development is its lack of human creativity and morality, preventing it from being used in emotional and judgmental occupations such as consultations or the law.
Footnotes:
[i] C-suite - CEOs or executives at a company.
[ii] Job Polarization - polarization of the labour force where middle class jobs get demoted to those requiring low skills, and those at the top requiring even more skills.
Bibliography:
The impact of artificial Intelligence on healthcare - LinkedIn
Economic impacts of AI - European Parliament
The rise of the most influential AI ever - Innovation News Network
