Recent data from accountancy firm PwC has revealed that industries most likely to utilize artificial intelligence are experiencing a significant increase in productivity growth. In particular, professional and financial services, as well as information technology, have seen a remarkable 4.3% growth in workers’ productivity between 2018 and 2022. This is in stark contrast to the meager 0.9% gains observed in sectors such as construction, manufacturing, and retail. The implications of this trend are significant, as it could potentially lead to a boost in the overall economy.
According to PwC’s report, the rise of artificial intelligence in high-productivity sectors could pave the way for increased economic growth, higher wages, and improved living standards. The data also indicates that sectors with high productivity levels are increasingly seeking employees with AI skills, suggesting that artificial intelligence is playing a crucial role in driving productivity gains. This shift towards AI-driven productivity growth is expected to continue as more companies adopt generative AI, which can be utilized by individuals without specialized AI knowledge.
Despite the promising prospects of AI in enhancing productivity, there are challenges that come with its rapid adoption. Carol Stubbings, leader of PwC Global Markets and Tax & Legal Services, highlighted the speed of change associated with AI, particularly generative AI, as a significant challenge. The swift evolution of AI technology poses a dilemma for businesses as they strive to keep pace with innovation while ensuring a smooth transition for their workforce. However, the potential benefits of AI in boosting productivity growth and job creation cannot be overlooked.
The head of the International Monetary Fund, Kristalina Georgieva, recently likened the impact of AI on the global labor market to a “tsunami,” warning that it is likely to affect 60% of jobs in advanced economies within the next two years. PwC’s extensive analysis of job ads across 15 affluent countries, combined with OECD data, revealed that roles requiring AI skills command a substantial premium. In the United States, jobs necessitating AI expertise carry an average premium of 25%, while in Britain, the figure stands at 14%.
The integration of artificial intelligence into various sectors is reshaping the landscape of productivity growth, job creation, and economic prosperity. While there are challenges associated with the rapid adoption of AI technologies, the potential benefits in terms of enhanced productivity and competitiveness are compelling. As businesses navigate the transformative impact of AI, it will be crucial to strike a balance between innovation and workforce readiness to ensure sustainable growth in the digital age.