In a rapidly evolving technological landscape, artificial intelligence (AI), and specifically generative AI, stands as a transformative force with the potential to redefine the nature of work and productivity. Despite fears of AI rendering many occupations obsolete, a comprehensive study by McKinsey offers a contrasting perspective: generative AI is more likely to create jobs and significantly enhance productivity. The report, titled “The Economic Potential of Generative AI: The Next Productivity Frontier”, projects that generative AI could potentially add up to $4.4 trillion of annual value to the global economy. This monumental shift, however, does not come without challenges and necessitates significant reskilling, strategic transitions, and effective risk management. The value generative AI brings is expected to predominantly influence four job categories: customer operations, marketing and sales, software engineering, and research and development. As we stand on the brink of this revolution, it becomes crucial to not just consider the economic implications, but also the broader impacts on well-being and the quality of life for the average person.
- There’s been ongoing concern about artificial intelligence, specifically generative AI, making jobs obsolete. However, a new study posits that generative AI is more likely to create jobs than eliminate them1.
- McKinsey recently published a report titled “The Economic Potential of Generative AI: The Next Productivity Frontier”. The study involved 850 job roles, 2,100 tasks across occupations in 47 countries, and concluded that generative AI could create up to $4.4 trillion of annual value in the global economy1.
- The $4.4 trillion figure is the high end of a range, with the lower bound being $2.6 trillion. Even at the low end, the value created would still approximate the GDP of the United Kingdom, which was $3.1 trillion in 20211.
- The economic impact will largely come from automating and accelerating human work, allowing more work to be done in the same amount of time. For example, a study found that customer service agents who used generative AI resolved 13.8 percent more issues per hour, enabling the company to hire more employees and do more business1.
- McKinsey’s study found that generative AI could automate 60-70% of the work activities that currently consume employees’ time. However, significant reskilling will be needed, and companies and governments will need to invest in supporting worker transitions and managing the risks that such a shift will bring1.
- The value addition from generative AI will be mostly concentrated in four job categories: customer operations, marketing and sales, software engineering, and research and development1.
- In marketing and sales, AI can generate creative content, including personalized content. In research and development, AI is rapidly modeling proteins, building protein complexes tailored to specific biological responses, and helping design artificial protein drugs. The industries predicted to see the most revenue growth from generative AI are life sciences, banking, and high-tech1.
- While generative AI is poised to revolutionize work and potentially the way we live, there are still questions about its impact on well-being and quality of life for the average person. It’s also noted that humans are still an essential part of the equation to complete most tasks1.
