McKinsey estimates generative AI could add $4.4 trillion to global economy annually

According to a recent report, the rapid development and breadth of capabilities of generative AI will usher in a new era of productivity and transform various business sectors. McKinsey report.

Standard AI is usually focused on pattern detection, decision making, and data analysis. Generation AI Refers to programs that create content such as text, audio, code, images, and videos.

By analyzing 63 different use cases, McKinsey researchers estimated that generative AI could add $2.6 trillion to $4.4 trillion annually to the global economy. For comparison, the researchers noted that the UK’s 2021 GDP is $3.1 trillion.

Furthermore, the report states that the estimate nearly doubles when researchers consider the impact of “embedding generative AI into software that is currently being used for other tasks beyond these use cases.” increase.

In assessing the impact, researchers concluded that generative AI will transform roles and improve performance in sales and marketing, customer operations, and software development. This ripple effect could create trillions of dollars in additional value across multiple industries such as banking and life sciences.

unlock value

The report highlighted that 75% of the value of generative AI is across four key areas: customer operations, marketing and sales, software engineering, and research and development.

The technology’s ability to automate tasks and streamline operations in these areas will help businesses increase their productivity and productivity in the global marketplace by automating tasks that currently consume 60-70% of an employee’s time. It provides an opportunity to significantly improve its competitiveness, he said.

Generative AI is expected to have a major impact on all industrial sectors, with banking, technology, and life sciences projected to gain the most.

According to the report, the banking industry could generate an additional $200 billion to $340 billion worth of value per year if generative AI use cases were fully implemented. The retail and consumer packaged goods sectors are also expected to benefit significantly, potentially impacting between $400 billion and $660 billion annually.

As a result, the potential for technological automation could accelerate workforce transformation. Companies should invest in supporting their employees as they change activities or move jobs to harness the potential of generative AI for increased labor productivity.

Challenges and impacts

McKinsey researchers highlight challenges to overcome, including determining new skills and competencies needed, rethinking core business processes, and ensuring adequate staff support to make the most of this opportunity Did.

As technology continues to evolve, researchers say it is imperative that companies adapt and invest in the necessary infrastructure, skills and processes to ensure they seize the opportunity.