How Will AI Change Work?
Randy Wolken, President & CEO
Artificial Intelligence (AI) is incrementally changing our lives. Daily, our tech is transitioning to AI applications on our smartphones, in our cars, and within our factories. This makes the speed of this process much less noticeable. All of us are on this journey. We will need to understand how it changes our work and our lives.
McKinsey can help us begin to grasp how the newest impacts of generative AI will affect our lives. Its power, reach, and potential are transformational. Over the next decade, it can dramatically boost critical functions such as sales and marketing, customer service, and software development and usage. These changes, and others, can unlock trillions of dollars in value across nearly every sector of the global economy.
McKinsey’s latest estimates indicate that generative AI can add between $2.6 to $4.4 trillion annually in 63 areas they have studied. Nearly 75% of the value of generative AI would fall in customer operations, marketing and sales, software, and R&D.
Some industry sectors that could see the most significant impacts include banking, high-tech, and life sciences. In the banking industry, AI-supported technology could deliver value equal to an additional $200 billion to $340 billion annually. The potential impact on retail and consumer packaged goods is estimated to be between $400 billion and $660 billion annually.
Generative AI will change the very anatomy of work and augment the capabilities of individual workers. Existing generative AI and related technologies could automate work activities that now account for 60 to 70 percent of employees’ time. What is different about this next iteration of generative AI is that it has more impact on knowledge work and is associated with occupations with higher wages and educational requirements.
The pace of work transition will accelerate since the era of generative AI has just started. The full realization of these technology benefits will take time, risk-taking, and wise deployment. It will change much about our modern society, including education, government, nonprofit, and business sectors. MACNY is here to help you with the new age of advanced manufacturing.