Machines that are capable of performing tasks similar to the human learn from experience and accordingly adjust their response are said to exhibit artificial intelligence.
The term ‘Artificial Intelligence’ was introduced in 1956, but it has only become this popular in the past decade due to various improvements in computing departments. Advanced algorithms and huge data volumes have increased the need for AI. Artificial Intelligence has given computers the power to make decisions. It has made the computers smarter and enabled them not even to stimulate but augment human activities. Search systems, formal reasoning, and automation that we witness in the computers of today are all the applications of AI. The goal of AI is to reduce human efforts. This technology is now being introduced in every sector of life to produce faster and more accurate results. It has become so advanced that even programmers do not require writing code for every little thing. It makes the systems so intelligent that they automatically understand what’s happening and perform their work. From medical sciences to heavy industries, financial systems to Engineering and Psychology, Artificial Intelligence is making essential contributions to every single field of the world (Bench-Capon and Dunne).
As we already know, Artificial Intelligence enables systems to predict results with the highest accuracies. Thus, it has the greatest potential to affect business models and companies’ strategies. AI is believed to have the capability to change the world. It will soon bring the greatest revolution of automating every possible thing. Businesses and companies that have not recognized the importance of AI yet and aren’t innovating and adjusting their business model accordingly will lose their competitive advantage over other companies, or even worse, will disappear. AI can bring major advantages to the fields of automation and efficiency, productivity and costs. Thus, it is advised for the businesses and consumers to make the most out of these advantages and shift to the digital economy. Artificial Intelligence is a combination of multiple technologies. It has enabled the systems to sense, understand and then act. AI has great potential in the field of production. It has the capability of changing the way the work is done, introducing brand new sources of growth and establishing new foundations for the role of people in the business’ growth. Accenture research has revealed that AI can increase the annual economic growth by two times, only by innovative the nature of work (Bench-Capon and Dunne). By 2035, it is expected that the Artificial Intelligence technologies would have the potential to increase productivity by more than 40%. This would aid in the increment of economic growth by means of 1.7% all over the 16 industries by the year 2035. Food Services, Accommodation, Education, and Construction industries are expected to witness the most positive effect of AI profitability (Columbus).
Artificial intelligence can affect the world’s economy to a great extent. This benefit can be maximized by managing gaps between countries, businesses, and workers properly. The McKinsey Global Institute conducted research in which they analyzed the impacts of AI on the global economy. The research makes us understand how companies and businesses should adopt these technologies to make the most out of them. The research says that by 2030, most of the companies of the world would have adopted either one or all of the five major categories of AI. These five categories include natural language processing, robotics, computer vision, machine learning, and virtual assistants. These adoptions will have the potential to increase the global economy by $13 trillion, i.e. 16% higher than the current GDP growth per year. Innovation, labor automation and other factors such as a country’s labor-market structure, its connectedness with the world and the pace at which it adopted or absorbed AI will affect the size of the impact it can bring to the particular country. The adaptation of AI has faced a slow start due to the investments and costs associated with it, but by the year 2030, it is likely to increase the global economy by 3 or even more times (Bughin, Seong and Manyika). Earlier in 2018, a group of World academics, bank staff, and company representatives attended a conference to discuss the advancement in artificial intelligence. One of the major takeaways was how it would be beneficial to the banking sector and its clients (Jones).
First, we moved towards the time of the internet and technology over the past few decades, and now, we are slowly moving towards the time of automation and predictions through adapting AI in various fields of life. Financial institutions deal with a huge amount of data that increases the need for understanding and analyzing data patterns. It leads to the increased demand for AI. Enterprises require efficient systems that can identify data patterns so that they can gain insight and understand their audiences. The Financial Service Industry is considered to be one of the major industries that have made the most out of Artificial Intelligence. Personal Assistant, Chatbots, Cognitive computing, and Machine learning, all are the applications of AI that are being used extensively in the finance industry. Auditing of financial transactions and the analysis of tax changes can make use of AI. AI has succeeded in this financial industry due to its ability of decision making and to predict with higher accuracy that makes it appropriate for risk assessment and fraud detection management. It also helps in managing finance, guides in trading and can be used to work as an advisor for financial services (Maruti Tech). A Study examined the impact of artificial intelligence on the economic growth. It found that the rise in capital share in the artificial intelligence industry has been increasing sharply, however it is also consistent in other industries as well. Furthermore, there are various other factors which need to be considered for assessment of the economic growth of artificial intelligence (Aghion, Jones and Jones).
Another industry that has been hugely revolutionized through AI is the Healthcare industry. This industry has realized the potential that AI, Big data and its components, in particular, has and thus has started implementing it across all sectors. It is believed that AI is only at its infant stage in the healthcare industry; still, it has brought upon some great impacts Healthcare professionals deal with a huge amount of data which needs to be managed, centralized and accessed instantly, AI helps in performing these tasks. Big data has now become the standard for record keeping in this industry. Further, deep learning algorithms are used to analyze this data so that important predictions can be made. Traditional operations have also been made advanced through innovative data sciences. Developers and software engineers are working to introduce new and innovative technologies for the diagnosis of various diseases. Medical Diagnostics have always been a serious problem that even leads to the deaths of patients. AI also assists in the treatment and the faster detection of these diseases. The results are considered to have better accuracy. Furthermore, Artificial intelligence is also making its mark in reducing medications non-adherence (Kevin). Even with all the doubts about Artificial intelligence reducing the innovative capabilities, increasing imitations and reducing economic growth, it cannot be disregarded that it offers potential and prospects for tremendous growth. This also shows that it would be tested in many industries (Aghion, Jones and Jones).
In the end, it is concluded that Artificial Intelligence is the new trend these days. We, humans are the species that use and prefer the tools to perform even the smallest type of work. And why should we not? These tools and technologies have made our life easier and have improved the overall lifestyle. Thus, now in the modern world, machines are being made that do not have an actual brain, but they can simulate human intelligence. Artificial intelligence has even made such machines that outsmart humans. It has all the capability of automating and revolutionizing the world. It helps in reducing human efforts and provides faster results with better accuracy. The industries that have already realized its significance are enjoying its benefits to the fullest, and the others are in the process of adaptations and absorptions. AI will be involved in every field of life in the upcoming years. It has brought a revolution in the business world. Industries like banking and finance, healthcare, Retail, Logistics, Manufacturing, and payment services are making big out of AI’s applications, and it also promises to revolutionize all the other industries of the world too shortly.
Work Cited
Aghion, Philippe, Benjamin F. Jones and Charles I. Jones.” Artificial Intelligence and Economic Growth.” Stanford. Stanford, 2017. Web. 13 October 2018. https://web.stanford.edu/~chadj/AI.pdf.
Bench-Capon, T J M and Paul E Dunne. “Argumentation in artificial intelligence.” Artificial intelligence 171.10-15 (2007): 619-641.
Bughin, Jacques, et al. “Notes from the AI frontier: Modeling the impact of AI on the world economy.” McKinsey. McKinsey, September 2018. Web. 12 October 2018. https://www.mckinsey.com/featured-insights/artificial-intelligence/notes-from-the-ai-frontier-modeling-the-impact-of-ai-on-the-world-economy.
Columbus, Louis. “Artificial Intelligence Will Enable 38% Profit Gains By 2035.” Forbes. Forbes, 22 June 2017. Web. 13 October 2018. https://www.forbes.com/sites/louiscolumbus/2017/06/22/artificial-intelligence-will-enable-38-profit-gains-by-2035/#61336c0d1969.
Jones, Maria. “Artificial Intelligence for Economic Development Conference: Roundup of 27 presentations.” World Bank.Org. World Bank.Org, 20 March 2018. Web. 13 October 2018. http://blogs.worldbank.org/developmenttalk/artificial-intelligence-economic-development-conference-roundup-27-presentations.
Kevin, Troyanos. “3 ways artificial intelligence is changing the healthcare industry.” CIO. CIO, 20 August 2018. Web. 12 October 2018. https://www.cio.com/article/3299303/health-care-industry/3-ways-artificial-intelligence-is-changing-the-healthcare-industry.html.
Maruti Tech. “5 ways AI is transforming the finance industry.” Maruti Tech. Maruti Tech, 2018. Web. 12 October 2018. https://www.marutitech.com/ways-ai-transforming-finance/.
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