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CURRENT DEVELOPMENT AN FUTURE OF AI IN ECONOMICS
ARTIFICIAL INTELLIGENCE (AI) HAS RIDDEN WAVES of public excitement, skepticism and fear since the 1950s.1 The skeptics, it seems, may soon be silenced. When ChatGPT – a language-processing chatbot capable of synthesizing reams of information and generating human-like text in response to queries — became widely available to consumers for the first time in late 2022, it was immediately apparent that a tipping point had been reached.
Just ask ChatGPT. Here’s the response we got – within seconds – when we questioned whether all the hype around artificial intelligence is justified: AI “holds immense potential to drive innovation, improve decision-making processes and tackle complex problems across various fields, positively impacting society.” Clearly, modesty isn’t one of the bot’s “character” traits.
Human observers agree. “AI is going to transform the global economy as surely as electricity and the steam engine did in their own times,” says Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. Below, Hyzy and Haim Israel, head of Thematic Investing for BofA Global Research, discuss the economic and market implications of the coming AI revolution.
Current AI’s breakthrough in Economics
Put simply, it’s the perfect marriage of technology and need. “More data is created in a single hour today than in an entire year two decades ago. Yet only about 1% of data is being captured, used and stored,” says Israel. “Until now, AI could read and write, but not understand content. That’s rapidly changing,” he explains. The onset of generative AI (GAI) systems such as ChatGPT enables machines to understand human language and produce human-like dialogue and content.
GAI systems are capable of generating new text, images and other media — think research reports, news items, speeches, poems, songs, videos, computer programs, you name it — from existing data. This technological leap is creating an “iPhone moment” for AI, democratizing data by making it available to billions of people through a growing array of commercial uses, says Israel.
How AI can change the economy in Future
“As the technology improves, its primary benefits will include higher productivity, as companies increasingly turn to GAI for content creation, software development, marketing and sales and customer service,” Hyzy says. These capabilities will cut across industries and will benefit consumers as well as companies, he adds.
Global revenue associated with AI software, hardware, service and sales will likely grow at 19% per year, reaching $900 billion by 2026, compared with $318 billion in 2020.2 According to some estimates, AI will contribute more than $15 trillion to the global economy by 2030.3 “Funding for AI development is pouring in from corporate and individual investors, as well as governments,”
Reference.
https://business.bofa.com/en-us/content/economic-impact-of-ai.html#:~:text=According%20to%20some%20estimates%2C%20AI,the%20global%20economy%20by%202030.&text=%E2%80%9CFunding%20for%20AI%20development%20is,likely%20to%20benefit%20the%20most%3F
CURRENT DEVELOPMENT AN FUTURE OF AI IN ECONOMICS
ARTIFICIAL INTELLIGENCE (AI) HAS RIDDEN WAVES of public excitement, skepticism and fear since the 1950s.1 The skeptics, it seems, may soon be silenced. When ChatGPT – a language-processing chatbot capable of synthesizing reams of information and generating human-like text in response to queries — became widely available to consumers for the first time in late 2022, it was immediately apparent that a tipping point had been reached.
Just ask ChatGPT. Here’s the response we got – within seconds – when we questioned whether all the hype around artificial intelligence is justified: AI “holds immense potential to drive innovation, improve decision-making processes and tackle complex problems across various fields, positively impacting society.” Clearly, modesty isn’t one of the bot’s “character” traits.
Human observers agree. “AI is going to transform the global economy as surely as electricity and the steam engine did in their own times,” says Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank. Below, Hyzy and Haim Israel, head of Thematic Investing for BofA Global Research, discuss the economic and market implications of the coming AI revolution.
Current AI’s breakthrough in Economics
Put simply, it’s the perfect marriage of technology and need. “More data is created in a single hour today than in an entire year two decades ago. Yet only about 1% of data is being captured, used and stored,” says Israel. “Until now, AI could read and write, but not understand content. That’s rapidly changing,” he explains. The onset of generative AI (GAI) systems such as ChatGPT enables machines to understand human language and produce human-like dialogue and content.
GAI systems are capable of generating new text, images and other media — think research reports, news items, speeches, poems, songs, videos, computer programs, you name it — from existing data. This technological leap is creating an “iPhone moment” for AI, democratizing data by making it available to billions of people through a growing array of commercial uses, says Israel.
How AI can change the economy in Future
“As the technology improves, its primary benefits will include higher productivity, as companies increasingly turn to GAI for content creation, software development, marketing and sales and customer service,” Hyzy says. These capabilities will cut across industries and will benefit consumers as well as companies, he adds.
Global revenue associated with AI software, hardware, service and sales will likely grow at 19% per year, reaching $900 billion by 2026, compared with $318 billion in 2020.2 According to some estimates, AI will contribute more than $15 trillion to the global economy by 2030.3 “Funding for AI development is pouring in from corporate and individual investors, as well as governments,”
https://business.bofa.com/en-us/content/digital-edge.html
Reference.
https://business.bofa.com/en-us/content/economic-impact-of-ai.html#:~:text=According%20to%20some%20estimates%2C%20AI,the%20global%20economy%20by%202030.&text=%E2%80%9CFunding%20for%20AI%20development%20is,likely%20to%20benefit%20the%20most%3F
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