AI increases productivity sectors of the economy
Gonzales 23—Julius Tan Gonzalez is a PhD Student of Yokohama National University and an analytics professional with a masters degree in Economics. “Implications of AI innovation on economic growth: a panel data study” SpringerOpen, 9/9/2023. https://doi.org/10.1186/s40008-023-00307-w | AC
AI drives economic growth by stimulating gains both from the supply side and the demand side. AI can drive business productivity through (1) automation of processes with the use of robots and “autonomous vehicles,” and (2) improvements in the existing labor force by equipping them with AI technologies. On the other hand, AI can generate an increase in consumer demand with the availability of “personalised and/or higher-quality” products and services. Accordingly, it is expected that AI could contribute up to USD 15.7 trillion to the global economy in 2030 (Rao and Verweij 2017).
Furthermore, the contributions of AI may be specific to the sectors where it is applied, such as manufacturing, health, finance, energy, and transport. For example, AI supports healthcare services through early detection and diagnosis of illnesses, identification of “potential pandemics and tracking incidence,” and “imaging diagnostics” in radiology and pathology. Meanwhile, AI contributions to the financial sector include applications for fraud detection and anti-money laundering. Also, AI developments such as “robo-advice” make “customized investment solutions” possible in managing financial goals and optimizing clients’ funds. In addition, AI enables “autonomous trucking and delivery,” traffic control systems, and improved security in the transport sector (Rao and Verweij 2017).