Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
Generative artificial intelligence (AI) in business - statistics & facts
Generative AI has taken the world stage by storm since late 2022. The concept is not new, with chatbot programs of various quality as well as low-grade image makers having existed since before 2020. However, it was in 2022 that Midjourney launched the generative AI art wave. Following that, ChatGPT took center stage as the most advanced chatbot yet to be made, created by the startup OpenAI, with tech giant Microsoft as its biggest investor. The use of generative AI skyrocketed in 2023, as well as general awareness of the subject. In the United States alone, well over a third of people had used ChatGPT, Bing Chat, My AI, and others. This level of usage is not expected to drop as commercial leaders feel strongly that generative AI should be used quite often in their enterprises.
Business can expect real benefits
The benefits to business are considerable, particularly in the automation of work processes and increases in productivity. It is expected that early adoption of generative AI could increase productivity by as much as point-six percent. This is a staggering amount of money considering the total size of the world's economic production. Much of this depends on how early businesses and countries adapt to this new tech and introduce it into usual work processes. The United States, being the largest economy on earth, will likely see an even greater value generation from early generative AI adoption, with a point-seven increase in productivity.AI automation impacts jobs
It is also undeniable that the adaptation of generative AI could send significant shockwaves through the global job market. For instance, in data management jobs, it is expected that processing data could be nearly 90 percent automated, while collecting data would similarly have a nearly 80 percent automation possibility. This would lead to a drastic drop in the availability of such positions, most likely leading to considerable layoffs or reskilling. Physically-intensive jobs remain safer, however, as generative AI is a purely digital phenomenon and would be highly unlikely to make much difference for projects requiring physical strength.The acorn doesn’t generate far from the AI tree
Generative AI will impact the business world much in the way that other AI programs will, by increasing efficiency, growing revenues, and reducing labor. The competition therefore will be to assess and implement those AI initiatives that most profit an individual business. Further to this, it will be the leaders, those who adapt faster and more consistently, that are likely to reap the majority of the benefits.Bergur Thormundsson
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Feb 27, 2024
Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
