AI promises considerable economic benefits, even as it disrupts the world of work. These three priorities will help achieve good outcomes.
The time may have finally come for artificial intelligence (AI) after periods of hype followed by several “AI winters” over the past 60 years. AI now powers so many real-world applications, ranging from facial recognition to language translators and assistants like Siri and Alexa, that we barely notice it. Along with these consumer applications, companies across sectors are increasingly harnessing AI’s power in their operations. Embracing AI promises considerable benefits for businesses and economies through its contributions to productivity growth and innovation. At the same time, AI’s impact on work is likely to be profound. Some occupations as well as demand for some skills will decline, while others grow and many change as people work alongside ever-evolving and increasingly capable machines.
This briefing pulls together various strands of research by the McKinsey Global Institute into AI technologies and their uses, limitations, and impact. It was compiled for the Tallinn Digital Summit that took place in October 2018. The briefing concludes with a set of issues that policy makers and business leaders will need to address to soften the disruptive transitions likely to accompany its adoption.