AI is the future (also in economics)
Yes, AI is the future, the Artificial Intelligence is in every Science-Fiction movie. It is what we should expect the future to look like everywhere; actually, it has already impacted the future in economics.
The growing big data, cloud-based applications and services, and the high demand for intelligent virtual assistants are bringing up a market in which artificial intelligence is both a great business investment and a very fast evolving asset.
You can download here a full report that explains that the AI market is expected to reach USD 190.61 billion by 2025 from USD 21.46 billion in 2018, at a CAGR of 36.62%
The future of AI and its economic impact will be defined by what can it do, and how fast it can develop and spread.
For now, what we know is that the short number of real experts working on it is the only thing that limits the market growth.
Although right now AI has not reached the imagination of those futuristic movies, the prevision says that soon it will be able to do things we can’t even begin to think.
But its not only about what AI can technologically achieve, but also important to keep in mind that government policies, and social attitudes will play a key role on how AI develops and its impact on the market.
Supporters want to believe that common users will welcome the upcoming changes and advances related with artificial intelligence. How fast this will happen will also set the mark for production, implementation and market opportunities for AI technology.
AI has achieved already some incredible feats, but what does these mean in economic terms? It is forecasted that by 2030, artificial intelligence will add $15.7 trillion to the global economy. To give us an idea, this is 19 times Apple’s market capitalization, and 186 times Bill Gate’s net worth.
But how is this possible? Well, to answer this question we have to look at what will be the two major impacts of AI technology: labor productivity improvements (the more intelligent technology involved, the faster people will be to solve problems and the more productive they will be), and increased consumer demand. This refers to what we mentioned before. Once the gross of the population gets used to AI advances, they will want to use them, and therefore, buy them.
This means that what will define AI’s growing speed and economic global impact depends on how fast we are to get used to it, and based on previous experiences (internet or the appearance of mobile phones and the spread of their use) chances are it’s going to be pretty homogeneous and fast.
Once this happens and AI is developed and implemented, we can count on the fact that all sectors of the economic system will be affected by it and applying AI to improve their productivity. Therefore: more money invested, more demand, more economic impact and faster.
All this can only mean one thing: the future of AI is unstoppable, and so is its economic impact. It’s hard to tell how fast this will really happen, but AI will take over the world just as much as electricity did back in the day.