In addition to the potential value generative AI can deliver in function-specific use cases, the technology could drive value across an entire organisation by revolutionising internal knowledge management systems , mentions the report
Nasscom in association with McKinsey & Company released a comprehensive report on The Economic Potential of Generative AI offers a substantial economic landscape, with Generative AI to inject a substantial USD 2.6-USD 4.4 trillion annually into the global economy across 63 diverse use cases.
A remarkable 75 per cent of this value is expected to be capitalised in critical domains such as customer operations, marketing & sales, software engineering, and R&D. The impact of Generative AI transcends industry boundaries, with banking, high tech, and life sciences sectors standing to benefit significantly.
Moreover, the potential for automating 60-70 per cent of employees’ time signifies the transformative power of this technology, notably through its ability to decipher natural language, making it apt for automation. As the future unfolds, with half of today’s work activities projected to be automated by 2045, strategic investments in worker training will be paramount. Generative AI is forecasted to fuel labour productivity growth by 0.1-0.6 per cent through 2040, translating into an impressive total economic benefit ranging from USD 6.1-USD 7.9 trillion annually. When considering the broader spectrum of AI, including Generative AI, the total economic potential surges to a whooping USD 17.1-USD 25.6 trillion annually, signifying a colossal transformation in the global economy.
Remarkably, the funding for Generative AI alone reached a remarkable USD 12 billion within the first five months of 2023, while the average Compound Growth Rate (CGR) of venture capital and private investment in Generative AI surged by 74 per cent annually between 2017 and 2022. This report underscores not only the immense potential of Generative AI but also the pivotal role it plays in shaping the future of work and economics on a global scale.