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Artificial intelligence (AI) divides the world economy into two extremes

According to the most recent Artificial Intelligence Report (AI) by McKinsey, the world is gradually changing, but those changes could lead to a world that is not human ways of living and working. will change but also divide the world’s economy.

Artificial Intelligence (AI) predictions are spreading everywhere and they often fall into two completely opposite extremes: win or lose. Many politicians and economic experts are skeptical that AI can have a powerful impact on the world economy in just a few years, and not everyone benefits equally.

Some businesses and countries are actively developing and adopting simple artificial intelligence models, while the rest, if there is no shortage of resources, are put into the wrong mindset of “we there is still plenty of time “as they have yet to experience any significant damage.

According to the latest report, “Notes from the Frontier: Modeling the Implact of AI on the World Economy” by McKinsey Global Institute (roughly translated: A message from the frontline: Modeling the impact of AI on the world economy) The biggest mistake businesses can make is not taking action now, increasing the inherent “insurmountable” gap between latecomers and leading firms.

“The adoption of artificial intelligence (AI) is a huge challenge because it can widen the gap between countries, companies and people. In addition, the performance gap between countries could be widened further by artificial intelligence. The leaders in the AI ​​field (mainly countries with developed economies) now hold between 20 and 25 percent of the economic interest, while developing economies hold only one. half of them.

The gap between companies is also increasing, with their predecessors expected to double profits by 2030.

For individuals, the demand for recruitment and compensation for employees with digital skills, awareness and experience has also increased rapidly to cater for difficult, impossible tasks. automation. For individuals who perform simple, repetitive tasks the opposite is complete. ”

The important point to note in the McKinsey report is that conclusions should not be rushed to conclusions, but to predict possible outcomes based on previously available original data.

The report says that, in the next 5-7 years, the winners will be businesses with positive moves. According to Jacques Bughin and Jeongmin Seong, the two authors of the report stated that:

“2025 will be the time when businesses will start reaping benefits from AI investments. Therefore, it will be especially difficult to compete with previous generations from this point on.

In the second half of the next decade, the top players will be completely separate from their competitors, and by 2035 the line between win and lose will stand out even more. Those who seriously embrace advancements in technology and are well prepared will definitely prevail. ”

Why is AI (artificial intelligence) important?

The McKinsey report looked at five types of AI technologies: computer vision, natural language, virtual assistants, robotic automation, and advanced machine learning. Based on results obtained from previous research, about 70% of companies adopt at least one type of AI technology by 2030, and half of large-scale companies are likely to fully implement public types. AI technology throughout the enterprise. Other important findings:

  • AI can increase economic profits by about 13 trillion USD (2030), contributing to 1.2% of global GDP a year.
  • AI’s ability to contribute to economic growth will triple or more by 2030 compared with the next five years.

Cash flow in companies that implement AI will double by 2030. The rest of them could lose 20% of their revenue. As Susan Lund, another author of the report said:

“The financial situation in businesses used to using AI will be better. They look to AI as an opportunity to grow, improve quality, and create entirely new products. Businesses with limited use only to see AI as a way to save costs.

Companies that don’t embrace AI quickly to improve the risk of growth will increasingly lag behind, losing their ability to attract elite talent, leading to the market trend increasingly focusing more on a few “super stars “are leading.

“The balance of growth is gradually leaning towards leading businesses. The possibility of them reinvesting these benefits and continuing to outstrip their competition could deepen the already insurmountable gap and increase the importance of automation and AI. ”

Who is the winner?

In a May survey, McKinsey described the ever-changing order of “superstar” companies, all concentrated in the US and China, including Google, Microsoft, Baidu, Alibaba, and Tencent. .

In the latest research, this list has been further expanded. In total, McKinsey analyzed 41 countries and classified them into four groups based on how they balance in the new AI era.

In the ranking, the United States and China are the two leading countries. Most AI in the US is driven by private industry. In China, AI efforts are led by the government.

“The Chinese government prioritizes the deployment of AI and AI is also mentioned a lot in the 13th 5-year plan (from 2016 to 2020), the Internet Plus and AI plan from 2016 to 2018, and the“ plan Next-generation AI. ”

China also announced its goal of building a $ 150 billion domestic AI market by 2020 and becoming a leading AI hub in the world by 2030. Private businesses are also stepping up AI development. For example, Alibaba, Baidu, Tencent as well as Iflytek (speech recognition specialist) have teamed up to jointly develop AI in areas such as autonomous vehicles, smart cities, and medical photography. ”

Conclude

Although the McKinsey report is not clear, we can all predict that the large corporations that dominate the Internet today will surely grow stronger and more dominant.

In the future, the AI ​​war between the United States and China will gain the upper hand and be the culmination of all attention, while the marginal positions will belong to the free market or centralized plans. governing.

Both approaches have many unforeseen consequences. Technologies capable of enhancing productivity and saving labor, such as AI, will inevitably make human wages and jobs less and less, increasing the gap between rich and poor, and consequently is to slow consumption

However, McKinsey Fellow and his partner, Jeongmin Seong, are quite optimistic that “the future is up to us to draw.

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