Artificial intelligence is “drastically” reshaping global economy and corporate profit, as industries reorganises around it.
This is the findings of a recent analysis by Bain & Company, highlighting how AI is creating a wave of winners and losers across sectors as companies battle to seize the technological advancement’s potential.
It is projected that in only half that time, AI will have more than triple the economic impact, reaching 1.7 times more widely, with 71% of sectors confronting structural transformation, versus 41% for the Internet.
The study further found that the technological advancement is making significant shifts within industries’ profit pools, prompting leaders to respond accordingly to the rapid expansion of AI.
Bain & Company notes that understanding the changes, along with who the winners and losers will be, requires a clear view of how technology disruptions work and what makes the AI revolution different.
According to Bain, AI’s fast-advancing restructuring of knowledge work, combined with its imminent impact on physical production through AI embodied in robots, reflects how it will soon affect most of what the global economy does.
It is forecasted that AI’s reach will extend into the high-value core of industries like industrial manufacturing, healthcare delivery, and pharmaceutical R&D that the Internet left untouched.
Moreover, Bain says productivity gains, innovation, and market share shifts will play out unevenly across industries. Leaders will then have the choice to build conviction about the implications of the technological advancement for their industry through knowing where their industry falls in one of four clusters:
- Technology Foundation – demand is unavoidable, growth is explosive
- Rewired – an open race, the swift will win
- Augmentation – the sector survives, leaders may not
- Revolution – delivery changes, the need doesn’t
