AI to increase global GDP by 7%

Artificial intelligence is poised to be a game-changer for the global economy, with estimates suggesting a potential increase in GDP by up to 7%.

AI automates repetitive tasks, freeing up human workers to focus on more complex and creative endeavours. This can significantly improve productivity across various industries, from manufacturing to finance.

Machine learning algorithms analyze vast amounts of data to identify patterns and optimize processes. This leads to better resource allocation and reduced waste, further boosting efficiency.

Generative AI can create new products, designs, and marketing strategies, fostering innovation in various sectors. AI can analyze customer data and preferences to personalize products and services, leading to increased demand and economic growth.

AI analyzes complex data sets to identify trends and predict outcomes, allowing businesses to make data-driven decisions that are more likely to be successful. This can lead to better resource allocation, reduced risks, and ultimately, higher profits.

According to research by Goldman Sachs, AI will increase global GDP by 7% and productivity by 1.5% in the next 10 years. In countries like Vietnam, the impact will be even greater. According to government estimates, current national investment into the technology is expected to contribute 12% to Vietnam's GDP by 2030.

The study suggests that AI, particularly advancements in Generative AI, has the potential to increase global GDP by 7% over a 10-year period. This translates to a roughly $7 trillion increase in global output.

Much attention falls on how, many jobs AI will replace, but the larger and less talked about i.e. impact from AI is how it will augment human capabilities and create new skills, better tools, working processes and access to information for workers.

AI-powered translation tools can break down language barriers, facilitating smoother collaboration between international teams. This can lead to increased efficiency and open up new markets for businesses.

The Challenges and Considerations are -

· Job displacement: While AI creates new jobs, it may also automate some existing ones. Governments and businesses need to invest in retraining programs to ensure a smooth transition for the workforce.

· Ethical considerations: Bias in algorithms can lead to unfair outcomes. It's crucial to develop and implement ethical guidelines for AI development and deployment.

· Data privacy concerns: As AI relies heavily on data, ensuring data privacy and security is paramount to maintain trust in the technology.

Moving ahead, AI presents a significant opportunity to boost global GDP. By harnessing its potential while addressing the challenges, we can create a more prosperous and equitable future.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA