AI-Intensive Sectors Showing a Productivity Surge, PwC Reports
- May 22, 2024
- Posted by: OptimizeIAS Team
- Category: DPN Topics
No Comments
AI-Intensive Sectors Showing a Productivity Surge, PwC Reports
Sub: Economy
Sec: National Income
Tag: denuclearisation of Korean peninsula
Key Findings:
Productivity Growth: Sectors likely to use artificial intelligence (AI) have experienced productivity growth that is nearly five times faster than other sectors.
- AI-Intensive Sectors: Professional and financial services, information technology.
- Productivity Increase (2018-2022): 4.3%.
- Other Sectors: Construction, manufacturing, retail, food, and transport.
- Productivity Increase in Other Sectors: 0.9%.
Economic Impact:
- Potential for Broader Economic Boost: The rise in AI usage could help countries overcome low productivity growth, enhancing overall economic growth, wages, and living standards.
- Commentary by PwC: Highlighted the faster growth in job advertisements for AI skills in highly productive sectors, indicating a role for AI in driving productivity.
AI and Job Market:
- Increasing AI Deployment: As companies adopt generative AI, which can be utilized by non-AI specialists, the trend in productivity growth is expected to accelerate.
- Challenge: The rapid pace of AI-related changes.
IMF Insights:
- Kristalina Georgieva (Head of IMF): Predicts AI will impact 60% of jobs in advanced economies within the next two years.
Wage Premium for AI Skills:
- United States: Jobs requiring AI skills carry an average premium of 25%.
- Britain: Jobs requiring AI skills carry an average premium of 14%.
Conclusion:
- The integration of AI into various sectors is significantly enhancing productivity, suggesting a potential pathway for economic revitalization and growth in living standards through technological advancement.