AI and automation
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AI and automation will significantly impact productivity and jobs. While AI can boost productivity through automation of routine tasks, it may also displace many jobs. To manage this transition and ensure the benefits of AI are widely shared, governments and companies should [1] establish ethical oversight of AI systems, [2] invest profits from AI into retraining displaced workers, and [3] explore options like universal basic income to support those impacted by job disruption. Overall, AI has the potential to dramatically increase global GDP if its development and applications are properly managed.
AI and automation
- 1. AI AND AUTOMATION MADHUBAN KUMAR, CEO METAFUSED P R O D U C T I V I T Y , J O B S : G E T T I N G R E A D Y F O R A R E S E T 15th Anniversary High Value Manufacturing & 4th New Materials & Graphene Conference 2017! 2-3 November 2017! www.cir-strategy.com/events!
- 2. “The chief economic priority for countries must be to raise the productivity of knowledge and service work. The country that does this first will dominate the twenty-first century economically.” -Peter Drucker, Founder of Modern Management
- 3. LABOR PRODUCTIVITY = OUTPUT (units produced) INPUT (hours worked) A productivity gap exists
- 4. State of productivity today Government’s independent forecaster says average 0.2% growth in productivity over past five years is more accurate than 1.6%
- 5. What’s driving down productivity
- 6. It took 600 Apple engineers less than two years to develop, debug and deploy iOS10. It took 10,000 Microsoft engineers more than five years to develop, deploy (and ultimately retract) Vista. Who is more productive
- 7. Activities driving down productivity
- 8. Knowledge workers are interrupted every 3 minutes on average, and it takes up to 8 uninterrupted minutes to re-establish focus
- 12. Global GDP will be up to 14% higher in 2030 as a result of the accelerating development and take-up of AI – the equivalent of an additional $15.7 trillion (source: PWC)
- 13. Productivity gains from businesses automating processes (including use of robots and autonomous vehicles) For example : To reduce supply chain by 1 day using smart robots in warehouses could bring $50-100m in cash flows for Fortune 500 companies (source: Accenture)
- 14. Productivity gains from businesses augmenting their existing labour force with AI technologies (assisted and augmented intelligence) For example: Algorithm based on the human immune system, is targeting wind farm productivity by predicting and preventing failures
- 15. Increased consumer demand resulting from the availability of personalised and/or higher-quality AI-enhanced products and services For example: Algorithms for facial recognition know who you are as you walk into retail today
- 16. Growth from steady state to AI embraced state AI’s highest impacts will be in • Information and communication • Manufacturing • Financial services
- 17. Where will the value gains come from in AI? China published 4,724 AI papers, while the EU published 3,932 (source: FT)
- 18. Where will the value gains come from in AI? AI is expected to unlock labour productivity, save time, personalise and enhance quality
- 19. Level of automation depends on predictability of tasks
- 20. AI, Manufacturing can generate an additional US$3.8 trillion in GVA by 2035, driven by augmentation and making labour more productive AI Gross Value Add in Manufacturing
- 21. AI Gross Value Add in Wholesale and Retail AI can yield more than US$2 trillion in additional GVA in 2035 for the Wholesale and Retail sector—an increase of 36 percent compared with the baseline case, driven by Automation
- 22. AI will accelerate growth in the Healthcare industry from 2.2 percent to 3.4 percent by 2035, generating US$461 billion of additional GVA, driven by Automation AI Gross Value Add in Healthcare
- 23. AI will boost profitability for all industry, some more than others AI has the potential to boost rates of profitability by an average of 38 percent by 2035 across 16 industries.
- 24. Meet Järvinen was selected by the state as one of 2,000 unemployed people for a trial of universal basic income.! He receives £500 pm A case for Universal Basic Income
- 25. • The Trainers, those who improve AI systems • The Explainers, those who interface with commercial or other entities not in direct contact with the AI, and • The Sustainers, those who ensure AI operates as intended What types of new jobs will come in
- 26. CHANGE IN AUDIT AND ACCOUNTING PRACTICES FOR CHARNGES AT SOURCE 2 SET UP ETHICS TEAMS TO MANAGE ROBOTS & DISCRIMINATO RY PRACTICES 3 POLICY TO ENSURE PROFITS ARE PLOUGHED BACK INTO TRAINING 1
- 27. DAWN OF A NEW ERA MK@metafused.co m METAFUSED