AI’s Contribution to the Economy
No one wants to miss the potential benefits that AI might bring to an organization, so companies are channeling significant resources into this sector. The economic impact of AI on the U.S. economy is expected to be profound, driving productivity, innovation, job creation, and competitiveness. According to a PWC study, AI will contribute $3.7 trillion to the North American economy in 2030, equating to 14.5% of GDP in 2030. China is expected to record the largest increase in both relative and absolute terms with an increase of $7.0 trillion during this same period or 26.1% of GDP. Of these global gains, 40% will come from improved productivity and 60% from product enhancement, mainly in the banking, technology, health care, and consumer experience sectors.
Disrupting the Workplace
The potential of AI to revolutionize industries is undeniable. Companies and organizations must be proactive in identifying and mitigating the potential economic and ethical challenges associated with AI. One area where people are both curious and at the same time skeptical of AI is the direct impact of it on the workplace. While some fear that AI could lead to significant labor displacement, we believe it will primarily boost productivity as companies invest in job training and upskilling to equip their workforce for the future.
Race for Talent
One current challenge for these AI companies is a shortage of skilled and qualified workers. The race is on for experienced data scientists, developers, and programmers. According to a recent McKinsey Technology Trends Outlook report, job postings for specific Gen-AI talent jumped 111% between 2022 and 2023. In fact, AI companies are prioritizing the recruitment of highly skilled individuals, including PhDs and data scientists, and are prepared to invest in competitive wage packages. Much of this expertise, as it happens, is concentrated in the Bay Area.
