As per the accountancy firm PwC, the industries that are inclined towards adopting artificial intelligence are experiencing a significant growth in productivity when compared to other sectors. A report by PwC revealed that professional services, financial services, and information technology sectors witnessed a remarkable 4.3% increase in productivity between 2018 and 2022. This growth far exceeded the minimal gains of 0.9% observed in industries such as construction, manufacturing, retail, food, and transport.
The data presented by PwC suggests that the emergence of artificial intelligence has the potential to propel countries out of the productivity stagnation that has been holding back economic growth. The increased productivity in AI-intensive sectors not only boosts the overall economy but also has a positive ripple effect on wages and living standards. Carol Stubbings, the leader of PwC Global Markets and Tax & Legal Services, noted that industries with high productivity levels are experiencing a surge in job advertisements for individuals possessing AI skills. This correlation implies that AI is indeed a driving force behind the heightened productivity in these sectors.
According to Stubbings, the trajectory of productivity growth facilitated by AI is expected to accelerate as more companies embrace generative AI technology. Generative AI has the unique capability of being utilized by individuals who do not specialize in AI, widening its application across various industries. However, she highlighted the challenge posed by the rapid pace of change associated with AI adoption, particularly generative AI.
Global Labor Market Impact
The head of the International Monetary Fund, Kristalina Georgieva, recently compared the impact of AI on the global labor market to a “tsunami.” She predicted that advanced economies could witness significant changes in up to 60% of jobs within the next two years. The PwC report, which analyzed over 500 million job advertisements across 15 affluent countries using OECD data, found that roles requiring AI skills, both specialist and non-specialist, commanded an average premium of 25% in the U.S. and 14% in the UK.
The widespread adoption of artificial intelligence is reshaping workforce productivity across various sectors, offering substantial economic benefits while also presenting challenges related to skill adaptation and the pace of technological advancement. As industries continue to integrate AI technologies into their operations, the workforce must prepare for a new era characterized by automation, augmentation, and evolving job roles.