July 20, 2023
DAKAR – The advent of ChatGPT has sparked enormous enthusiasm for artificial intelligence (AI) technology and its immense potential. Some experts have called it the most wonderful invention after the Internet in recent times. Bill Gates, the co-founder of Microsoft, said: “This will change our world.”
It’s no wonder that business leaders are equally enthusiastic because they see it as a way to improve productivity and efficiency, and thus reduce costs. As a result, generative AI is advancing at an unprecedented speed to become one of the essential resources for businesses across various industries.
A survey by popular business magazine Forbes found that businesses are already using AI technology in areas such as cybersecurity, fraud management, content production and customer support.
Businesses have started using AI for instant messaging, emails, phone call handling, and product recommendations to improve customer experience. They also apply this technology to improve production processes and process automation. Additionally, AI is leveraged for data aggregation, idea generation, internal communications, preparing presentations and reports, and writing codes.
According to Goldman Sachs, over the next 10 years, AI could potentially increase productivity by 1.5% per year, which would help companies increase profits by 30%. Improving labor productivity has significant positive effects on the global economy and global GDP will grow by 7% per year over a decade.
The world is witnessing massive investments by businesses to integrate AI technology into their operations. In 2021, global private investment in AI was $94 billion. However, more and more investments are being followed at a very rapid pace in this area. Analysts estimate that total investment in AI could reach up to $300 billion by 2030.
However, there are also some concerns.
An obvious concern is that AI will reduce the workforce. A recent report from Goldman Sachs revealed challenging possibilities in AI and the workforce. The report shows that around 300 million jobs worldwide could be exposed to automation thanks to new advances in AI.
The report also states that a quarter of all work done could be replaced by generative AI.
Another notable concern is the possibility of providing incorrect information to businesses or their customers, which could cost businesses dearly. Business leaders also express apprehensions about data security and privacy in the AI era.
These concerns are completely natural. Since the first industrial revolution, the world has witnessed significant changes in science and technology, which have led to radical changes in the way work was done.
Every time a new technology appears, there is fear of downsizing. However, the world has also seen that the displacement of workers due to automation has always been offset by the creation of new jobs. The emergence of new jobs thanks to technological progress contributes significantly to employment growth.
Savings in labor costs, the creation of new jobs and higher productivity are assumed to increase the likelihood of an economic boom, although analysts are not very sure of the timing.
The author is Chairman and Managing Director of BASF Bangladesh Limited. The opinions expressed here are personal.
