What is the future of AI according to McKinsey Global Institute? | AI in business #37

Considering that generative AI streamlines the work of top-earning professionals by relieving them of repetitive tasks, these numbers can translate into colossal gains for businesses. If we blend automation with AI, efficiency gains can even amount to 3.3% per year, which means an increase of $2.6 to $4.4 trillion annually. Let’s learn more about the future of AI and the most impacted industries. Read on.

The future of AI

The growth projections presented by McKinsey Global Institute in its report “The economic potential of generative AI. The next productivity frontier” take into account the time people need to learn new skills or switch industries. And although the development of artificial intelligence has accelerated over the past few years, the enormous impact it had after the release of ChataGPT to the general public on November 30, 2022 surprised almost everyone. So, what changes can businesses expect in the coming years? Which industries can anticipate the deepest transformations?

Sectors affected by change in the future of AI

The main areas where generative artificial intelligence triggers colossal changes are:

• customer service,
• sales and marketing,
• software engineering, and
• research and development (R+D).

The retail and consumer goods industry is also subject to a seismic shift. In this sector alone, the introduction of generative artificial intelligence is projected to result in an estimated annual growth ranging from $400 billion to $660 billion.

But where do these changes come from? According to McKinsey’s analysts, generative AI is not changing the pace of work but rather its very anatomy. It enhances the capabilities of individual workers by automating certain tasks. The current state of AI and its accompanying technologies has the potential to automate work that now takes up 60 to 70 percent of employees’ time. Let’s take a look at what changes are in store for workers in specific industries in the near future.

Customer service in the era of the future of AI

Customer service is one of the sectors that will benefit most from the development of generative artificial intelligence. It is estimated that it could increase productivity by 30 to 45 percent in comparison to the current costs associated with these activities. According to the estimates provided in the mentioned report, particularly promising areas are:

1. Self-service – the customer communicates with a human-like chatbot that provides instant, personalized answers to complex questions, ensuring a consistent tone of voice regardless of the customer’s language or location.
2. Customer interaction – the agent can use scripts of previous calls summarized by AI. Another significant change is the option to access customer data, knowledge bases, and real-time problem-solving information provided by AI during phone calls.
3. Self-development – thanks to ready-made script templates with suggested solutions and recommendations based on common customer issues, agents can assist customers more effectively.They can also benefit from personalized guidance on improving their work, including the description of next steps to ensure a positive customer experience, and even suggestions for training they should undergo.

The future of AI in sales and marketing

With AI, sales can grow globally from 3 to 5%. Here are some key aspects that illustrate the potential of AI in shaping the future of sales and marketing:

• Developing strategies – artificial intelligence will make it considerably easier for sales and marketing professionals to collect unstructured data from various sources to effectively plan marketing and sales communications,
• Enhancing product and brand awareness – advertising campaigns will be displayed only to those customers whose needs align with the content of the ad,
• Taking purchase decisions – customers get the opportunity to read extensive information, comparisons, and recommendations to help them make purchase decisions,
• Increasing conversion – advanced AI technologies enable virtual sales representatives to build trust by mimicking human traits such as empathy and natural language,
• Retaining customers – thanks to personalized messages and pleasant interactions with customer service chatbots, customers will be more loyal to the brand.

AI-assisted coding

According to McKinsey’s analysts, artificial intelligence will have a huge impact on software houses. This is because it will change the way software is developed in the following areas:

• Planning – engineers will more widely use artificial intelligence to analyze and organize large data sets,
• System design – generative artificial intelligence will help create and optimize IT architecture designs,
• Coding – AI-powered tools will greatly reduce software development time,
• Testing – here, the most significant change will be the automatic and efficient testing of software features and capabilities,
• Maintenance – artificial intelligence will help diagnose problems and errors, and identify areas for improvement.

Research and development with AI

The field of research and development (R&D) is already benefiting from the potential of generative AI. Nevertheless, the potential for productivity growth is still high, somewhere between 10 and 15%. The most important areas where AI will bring improvements are:

1. Early research – R&D analysts will use generative artificial intelligence to create reports, generate new solutions and create designs for new products.
2. Virtual simulations – generative AI will greatly speed up the creation and optimization of new technological solutions, especially if combined with generative design techniques based on deep learning.
3. Physical tests – using digital twins will enable researchers to optimize products without checking all the parameters in physical tests, which will greatly reduce the time needed to follow the path from the concept to the final solution.

The future of AI – summary

Generative artificial intelligence has huge potential to transform businesses. It brings such benefits as increased productivity, better customer service, more effective marketing and sales strategies, faster software development, and improved R&D processes. Its impact on business will gradually increase over the next 10-20 years. What innovations and changes will the generative AI bring to various industries? What new challenges and opportunities will we discover when using AI in business?

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