Group items tagged

The role of artificial intelligence (AI) tools and techniques in business and the global economy is a hot topic. This is not surprising given that AI might usher in radical—arguably unprecedented—changes in the way people live and work. The AI revolution is not in its infancy, but most of its economic impact is yet to come.

New research from the McKinsey Global Institute attempts to simulate the impact of AI on the world economy. First, it builds on an understanding of the behavior of companies and the dynamics of various sectors to develop a bottom-up view of how to adopt and absorb AI technologies. Second, it takes into account the likely disruptions that countries, companies, and workers are likely to experience as they transition to AI. There will very probably be costs during this transition period, and they need to be factored into any estimate. The analysis examines how economic gains and losses are likely to be distributed among firms, employees, and countries and how this distribution could potentially hamper the capture of AI benefits. Third, the research examines the dynamics of AI for a wide range of countries—clustered into groups with similar characteristics—with the aim of giving a more global view.

The analysis should be seen as a guide to the potential economic impact of AI based on the best knowledge available at this stage. Among the major findings are the following: There is large potential for AI to contribute to global economic activity A key challenge is that adoption of AI could widen gaps among countries, companies, and workers

AI tools will help creative people be more creative and strategic people be more strategic, so core people can actually be more human, Lee said. "Jobs like doctors will require more EQ [emotional intelligence], more compassion, more human-to-human interaction, while AI takes over more the analytical, diagnostic work."

"We see AI changing 90 percent of the work people do," Daugherty said. "Fifteen percent of jobs will be completely automated and replaced. But the major of jobs will be improved."

"There is a lot of a counterweight of investors who really care about this stuff," said Paula Goldman, leader of the Tech and Society Solutions Lab at the Omidyar Network, citing the potential for indices that track how well companies follow best practices. "You can reframe [AI response] as a business risk."

But the ability to tag that data may be China’s true A.I. strength, the only one that the United States may not be able to match. In China, this new industry offers a glimpse of a future that the government has long promised: an economy built on technology rather than manufacturing.

“We’re the construction workers in the digital world. Our job is to lay one brick after another,” said Yi Yake, co-founder of a data labeling factory in Jiaxian, a city in central Henan province. “But we play an important role in A.I. Without us, they can’t build the skyscrapers.”

While A.I. engines are superfast learners and good at tackling complex calculations, they lack cognitive abilities that even the average 5-year-old possesses. Small children know that a furry brown cocker spaniel and a black Great Dane are both dogs. They can tell a Ford pickup from a Volkswagen Beetle, and yet they know both are cars.A.I. has to be taught. It must digest vast amounts of tagged photos and videos before it realizes that a black cat and a white cat are both cats. This is where the data factories and their workers come in.