Impact of Artificial intelligence on the Economy

Artificial intelligence (AI) is a technology concerned with making smart machines that are capable of doing designated tasks without human intelligence. Artificial intelligence (AI) is generally divided into two categories:

1.  Narrow Artificial Intelligence:  

Narrow AI is ubiquitous and is the most successful realization of artificial intelligence to date. Its main focus is on performing specific tasks. According to a report of 2016, Narrow AI has also contributed to the economic development of the country.

 2.  Artificial General Intelligence (AGI):  

AGI is a machine that looks like a human being having general intelligence and it can apply that intelligence to solve any problem. The best example of this type of Artificial intelligence is the robots used in the movies like ROBOT and ROBOT 2.0.


AI is impacting content writing, healthcare, manufacturing, shopping, entertainment, and every area of our lives that we can imagine. AI is also impacting day-to-day activities in one or another way.
There are some notable impacts of AI on the different sectors of the economy that are discussed below:

Impact of AI on the Banking Sector:

Among those prominent sectors where AI has a huge impact, banking is also one of them. According to a report by Mordor Intelligencethe global AI fin-tech market was estimated at USD 6.67B in 2019 and is predicted to reach USD 22.6B in 2025. The increasing impact of AI on the banking sector has changed the way banks work, provide services and create products and also customer services. A research report published in Business Insider suggests that banks can save an estimated amount of USD 447B by 2023 simply by switching to AI. Following are some ways that show how AI is changing Banking sectors:

i)   By minimizing the operating costs

ii)  Better customer experience

iii) 24*7 services

iv) Better regulated system

Impact of AI on the Corporate Sector:  
AI is impacting every area of corporate. AI is helping the companies in marketing and sales by providing quality and effective leads to meet the sales target and with the help of predictive marketing, the marketer can concentrate on the potential customer. It helps the marketers by providing a huge amount of marketing data and its analytics from social media, emails, and the Web relatively faster. It also helps in reducing operational costs and providing security.

Impact of AI on the Employment Sector:
Although, AI is impacting our lives in a very positive way by providing many services. It has also impacted the employment sector in both negative and positive ways.  Talking about the positive aspect, it helps in enhancing the skills of employees in solving complex problems and critical thinking and talking about the negative impact the increasing use of AI has reduced the needs of humans in many areas that results in a reduction of employment opportunities.

Conclusion:
As we have discussed the impact of AI on different sectors of the economy. In conclusion the above discussion, we can say that we can save a lot of time, effort, and money by using AI in different areas of each sector. But it is also very important to consider the negative impact of AI for a better and safe future because with the increasing use of AI we are becoming dependant on AI for every aspect. So, we should use AI but by considering its adverse effects.

Written by Kajal Garg (Guest Contributor)

Sources:

Comments

  1. Very helpful content .Superb Kajal Garg.This blog helps me alot about AI .

    ReplyDelete

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