Everyone knows that the era of Artificial intelligence (AI) has arrived. Recent rapid advancements in AI has createdardent interest all over the world.
Basically,what is AI? The father of artificial intelligence John McCarthy hasdefined AI as “the science and engineering of making intelligent machinesespecially intelligent computer programs.” AI develops machines with human-like intelligence, i.e., it processes information and produces output similar to how humans behave, comprehend andsolve problems.AI using adata-driven algorithm creates this possibility to develop such machine andadapt accordingly. Let us take an example, when auser visits a website more than once, a networkof AI algorithms will work in the backgroundbased on user’s online behavior.It processes the data, makes an intelligent guess, and displays an advertisement that can retain user’s attention.
Thus, AI is the technology that willallow businesses to be informed about client’s needseven before they want it. AI is a great achievement which can improveproductivity by the copious amount andmerits the necessity of its mention these days. Importanceof AI cannot be ignored. Artificial Intelligence can be used to transform oureconomy.It impacts us in our day-to-day activities and decision-making. Voice-activatedassistants in tablets, smartphones and computer’s (like Amazon’s Alexa) uses AI, it followsuser’s voice command to complete assigned tasks. AI is also used to build highly sophisticated tech tools likeGoogle’s AlphaGo, IBM Watson and ArriaNLG(Natural Language Generator).Arria NLG can act as an analyst and writer, it cancrunch millions of data points per second,process and analyze data to generate easy to read reports much faster thanhuman brain.
Thus, it allows individuals time to imagine, innovate and performhigh-value tasks.These are just the tips of the icebergthat we see. Artificial intelligence also helps business and society at large. According to various studiesand researches, new AI technologies willfuel global economic growth as productivity and consumption increases shortly.The future looks bright with AI just scratching the surface from developing efficientpower transformers, smarter advanced supply chains, fully automatictransportation systems to solving worldproblems of health and food shortage. AIhas unparalleled potential. AI isexpected in the coming times to help improve and perform tasks more efficientlyand accurately which will save society’s cost, money and time. It will enablecolossal production and laborproductivity, to deliver uninterrupted services to individuals in the country and optimize the resources available to thegeneration which will help in the overall economic development andtransformation of the economy to better serve it’s social, political, financial and other needs.
One questionthat is necessary to address now is whether Artificial Intelligence has theability to boost economic growth? The answer to it is a big Yes. ArtificialIntelligence has the potential to compel and enhance economic growth. Thecombination of man and machine can be used to solve the difficult problems ofan economy. Global tech major Accenture calls artificial intelligence asanother new and important factor of production both for now and future. One canmerely infer from it that AI will help in increasing laborand capital productivity as these are major factors of production and AIinvestment will accelerate them. So, AI can help in developing new sources of growth.Hence, AI helps in expanding the role ofpeople, entrepreneurs, government, and organizationscrediting them to experiment, innovate and devise various means to propelgrowth in business and economy as a whole. It explains three ways by which India can increase its economicgrowth through artificial intelligence.
Firstly, it can be done by enhancingintelligent automation and augmenting and complex mundane human tasks that can be taken over by AI.Secondly, by empowering current workforcewith new skills and knowledge to cope and help in the advancement of AI. Thirdly, by building AI innovation that can beused for structural economic transformation which can result in the development of the overall economy.
Mark Purdy who is theManaging Director and Chief Economist of Accenture Research has emphasized on the importance of AI and how “AIcan have a pervasive impact on business profits because it affects nearly everypart of the organization from production, to sales, to innovation.” Theidea is by taking up routine work by AI;the employees can focus their concentration on doinga high-value work that is creative, productive and cannot be performedby machines.A research conducted by Accenture and Frontiereconomics that estimated the economicimpact of Artificial intelligence on various important economies of the world .2035was used as the target year to absorb new technological impact. The study was segregated into two outlines- one wasthe baseline scenario that gave annual estimated economic growth rate for futureunder current assumptions, and the other was AI scenario which showedexpected economic growth once AI effect has been added to the economy. The results were published in the report titled “Rewire for Growth”which was published in 2017.
Some of the main findings of the report areexplained below using figures 1 and 2. Figure 1: Economic impact ofArtificial intelligence on various economies (Source: Rewire for growth report, 2017)Here, Figure1 shows if AI is taken into consideration, the real GVA of significant economies in the world has a higher growthpercent than baseline scenario. Here we can see India and China are expected to benefit the most in 2035.
Examiningthe case of India further, Figure 2 explains how with AI absorbed in theeconomy India’s GVA will accelerate theeconomic growth by 957 billion US dollars, adding 1.3 percent per year to itsgrowth thereby raising national income by 15 percent in 2035.The size of the Indian economy in 2035 is estimated to be 6,397billion US dollars if we don’t take AI. However, including artificialintelligence as a factor, it is expectedto raise India’s size to 7.
355 billion US dollar. The figure also shows thebreakup of 957 billion US dollar asartificial intelligence is categorizedinto Intelligent automation, augmentation and Total Factor Productivity thatwill contribute 83,597,277 billion US dollars toIndia’s economic growth. Figure2: Gross Value Added of India in 2035 without and with AI. (Source: Rewire for Growth, Accenture, 2017)In India’scontext, to show how Artificial Intelligence is being used we can take an example of Manipal Hospitals in Bengaluru that uses IBM Watson for Oncology. IBM Watson is an AI backeddigital intelligence and a cognitive-computing development platform to help doctorsidentify personalized cancer care options across the country, providing better diagnostic andpatient experience. Currently, Indian Railway and RailTech are working with ISRO to build safety mechanisms, using AI andmachine learning to make train travel safer. Thus, Indian firms are showing an increase in harness AI to transform their businesses in various sectors like health, education, finance, automobile, and retail are. This shows how artificial intelligenceis helping Indian economy.
Looking at global trends, large businessesand digital platform will play a key rolein innovating and unlocking the economic value of AI. Realising AI’s potential thereis a need to set up a clear nationalArtificial Intelligence-based development planfor India’s economy similar to whatother countries are doing, educate people about AI and its growing importanceand enhance research in this area.One crucial step in the right directionhas been taken by NirmalaSitharaman who was Commerce Minister at that time. She formed an 18 member Artificial Intelligence TaskForce on 25 August 2017.Major goals ofthis task force committee are to accelerateand enable economic agenda ofdevelopment using artificial intelligence inthe fields of national security, IT andhardware, retail, education, finance, healthcare,agriculture, customer engagement and provide moretech-enabled utility facilities to citizens.Hence, thereis a need to make most of this AI opportunity.
Artificial Intelligence is theright step in the right direction. AI will benefit the humanity and expand people’s potential in the long run. Thegovernment, policymakers, business leaders, organization, andinstitution must be united to work towards the AI revolution. Artificial intelligence will definitely help inaccelerating our economic opportunities in comingyears.