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Generative AI: transforming the global economy and disrupting industries | Latest World News | WION

2 minutes 16 seconds

Speaker 1

00:00:00 - 00:00:50

Now we take you to the exciting world of generative AI where humans can create content just by giving a set of instructions. Well, the best example of generative AI is chat GPT, which recently took the world by storm and rekindled people's interest in artificial intelligence. But generative AI is much beyond just chat GPT throwing instant results It has the power to change the way global economy operates a recent McKinsey and company report throws some light on the transformative Aspects of generative AI The report suggests generative AI could add 2.6 trillion to 4.4 trillion dollars to the global economy every year. That's more than the United Kingdom's entire GDP in 2021. But if there are any sectors which stand to gain the most, they are the global banking and retail sectors.

Speaker 1

00:00:51 - 00:01:21

Effective use of generative AI can help the banking sector add up to $340 billion every year. Consumer retail sector stands to gain nearly $660 billion each year if it is able to use generative AI to its fullest. Generative AI has the ability to change the way we work, that too in a good way. The report estimates that generative AI can potentially automate work that absorbs 60 to 70 percent of employees' time today. The technology will also impact labor productivity.

Speaker 1

00:01:22 - 00:01:56

The report suggests that the technology can increase production, adding about 0.1 to 0.6% annually until 2040. However, a lot depends on how fast companies adopt this technology. But adopting the technology will also mean massive disruption in the economy. Experts say that upskilling employees will be the best way to deal with an AI-centered world. They say that generative AI will make certain jobs redundant but create new jobs where critical thinking, problem solving and creativity will be given more weight.

Speaker 1

00:01:56 - 00:01:56

Nevertheless, experts suggest a global framework to regulate artificial intelligence that can help countries deal with any misuse of the technology. The move.