Generative artificial intelligence (AI) technologies are set to add trillions of dollars to the global economy, according to a report by McKinsey. Specifically, OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Bard are expected to inject between $2.6tn and $4.4tn annually across 63 distinct use cases. Industries including banking, life sciences, and high tech are predicted to feel the most impact, with the report noting that around 75% of this value creation is expected to occur in four key areas: customer operations, marketing and sales, software engineering, and R&D.
The study further revealed that current generative AI technology and other advancements have the power to automate approximately 60% to 70% of employees’ time-consuming work activities. This includes challenging previous estimates that suggested automation could only replace half of employees’ workload. The updated adoption scenarios now project that around 50% of today’s work activities could be automated between 2030 and 2060, with a midpoint estimate of 2045 — a decade earlier than previously predicted.
The report highlighted the fact that generative AI could also enable labour productivity growth of 0.1% to 0.6% annually through to 2040, depending on the rate of technology adoption and redeployment of worker time into other activities. The potential benefits to the retail and consumer packaged goods sectors range from $400bn to $660bn annually. In banking, generative AI could unlock an additional $200bn to $340bn per year if related use cases were fully implemented.
McKinsey’s study forecasts that generative AI adoption could have a significant impact on many industries, potentially replacing some aspects of traditional employment and freeing up workers’ time for other activities.
Frequently Asked Questions (FAQs) Related to the Above News
What is the report by McKinsey about generative AI?
The report by McKinsey suggests that generative AI technologies like ChatGPT, Claude, and Bard are expected to add between $2.6tn and $4.4tn annually across 63 distinct use cases, potentially injecting trillions of dollars to the global economy.
Which industries are expected to feel the most impact of generative AI technologies?
Industries like banking, life sciences, and high tech are predicted to feel the most impact of generative AI technologies.
What are the key areas where around 75% of value creation is expected to occur?
Around 75% of value creation is expected to occur in customer operations, marketing and sales, software engineering, and R&D, according to the report.
How much of employees' work activities can be automated by generative AI?
According to the study, current generative AI technology and other advancements have the power to automate approximately 60% to 70% of employees' time-consuming work activities.
What is the projected timeline for automation of today's work activities?
The report predicts that around 50% of today's work activities could be automated between 2030 and 2060, with a midpoint estimate of 2045 - a decade earlier than previously predicted.
What is the potential impact of generative AI on labour productivity growth?
The report suggests that generative AI could enable labour productivity growth of 0.1% to 0.6% annually through to 2040, depending on the rate of technology adoption and redeployment of worker time into other activities.
Which sectors could benefit from generative AI in terms of potential revenue growth?
The potential benefits to the retail and consumer packaged goods sectors range from $400bn to $660bn annually. In banking, generative AI could unlock an additional $200bn to $340bn per year if related use cases were fully implemented.
What could be the impact of generative AI on traditional employment?
McKinsey's study forecasts that generative AI adoption could potentially replace some aspects of traditional employment and free up worker's time for other activities.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
