Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 312 | September 1-7, 2023
What’s the future of generative AI? An early view in 15 charts
McKinsey & Company | August 25, 2023
Extractive Summary of the Article | Listen
Since the release of ChatGPT in November 2022 McKinsey research found that generative AI (gen AI) features stand to add up to $4.4 trillion to the global economy—annually. Five of the explanations behind this prediction are:
- Gen AI finds its legs. The advanced machine learning that powers gen AI–enabled products has been decades in the making. But since ChatGPT came off the starting block in late 2022, new iterations of gen AI technology have been released several times a month. In March 2023 alone, there were six major steps forward, including new customer relationship management solutions and support for the financial services industry.
- The road to human-level performance just got shorter. For most of the technical capabilities gen AI will perform at a median level of human performance by the end of this decade. And its performance will compete with the top 25 percent of people completing any and all of creative tasks before 2040. In some cases, that’s 40 years faster than experts previously thought.
- And automation of knowledge work is now in sight. Previous waves of automation technology mostly affected physical work activities, but gen AI is likely to have the biggest impact on knowledge work—especially activities involving decision making and collaboration. Professionals in fields such as education, law, technology, and the arts are likely to see parts of their jobs automated sooner than previously expected. This is because of generative AI’s ability to predict patterns in natural language and use it dynamically.
- Apps keep proliferating to address specific use cases. Gen AI tools can already create most types of written, image, video, audio, and coded content. And businesses are developing applications to address use cases across all these areas. In the near future, we expect applications that target specific industries and functions will provide more value than those that are more general.
- Gen AI could ultimately boost global GDP. McKinsey has found that gen AI could substantially increase labor productivity across the economy. To reap the benefits of this productivity boost, however, workers whose jobs are affected will need to shift to other work activities that allow them to at least match their 2022 productivity levels. If workers are supported in learning new skills and, in some cases, changing occupations, stronger global GDP growth could translate to a more sustainable, inclusive world.
2 key takeaways from the article
- Since the release of ChatGPT in November 2022, McKinsey research found that generative AI features stand to add up to $4.4 trillion to the global economy—annually.
- How? McKinsey’s research suggest the following ways: Gen AI finds its legs, the road to human-level performance just got shorter; automation of knowledge work is now in sight; Apps keep proliferating to address specific use cases; Gen AI represents just a small piece of the value potential from AI; Software engineering, the other big value driver for many industries, could get much more efficient; Gen AI assistance could make for happier developers, momentum among workers for using gen AI tools is building, organizations still need more gen AI–literate employees, and gen AI represents just a small piece of the value potential from AI.
- Research also highlight that some industries will gain more than others; understanding the use cases that will deliver the most value to your industry is key; despite gen AI’s commercial promise, most organizations aren’t using it yet; and organizations should proceed with caution.
(Copyrights lies with the publisher)
Topics: Technology, Artificial Intelligence, Global Economy, Productivity