🚀 Hey everyone, I've been diving into an exciting report that I just had to share with you all! So this is just a pop-up edition that came from my heart…
It's from the Indian Institute of Management Ahmedabad (IIMA) and Boston Consulting Group (BCG), and it's all about the transformative potential of AI for our economy and businesses.
📈 The report suggests that if we embrace AI, we could see a consistent addition of 1.4% to our real GDP growth. That's huge! But it's not just about the numbers. Imagine industries revolutionized, products and services redefined, and supply chains reshaped. That's the power of AI.
🏭 But here's the reality check - the study finds that 2 out of 3 Indian companies are still in the early stages of AI adoption and maturity. It's a wake-up call for us to accelerate our AI journey. AI maturity isn't just about data or analytics - it's about leveraging AI to drive our strategic objectives and enhance our performance.
But how are companies leveraging the GEN AI?
🎯 The top 500 companies need 25k to 30k advanced practitioners of AI and Machine Learning in the next 3-5 years. That's a call to action for all of us in the industry to drive a massive upskilling initiative.
⏱️ And it doesn't stop there - these companies also require 1 million hours of training to upskill mid and senior-level management on the business aspects of AI, digital transformation, agile ways of working, and more. Upskilling isn't just about technical skills, it's about understanding the business implications of AI and being able to lead in a digital-first world.
🔑 The key to success in AI? Achieving an advanced level of AI maturity. It's about leveraging AI to drive our strategic objectives and enhance our performance.
P.S.
As of 2021, the global AI market was estimated to reach US$450 billion in 2022, growing at a rate of more than 20%. In comparison, India's AI expenditure reached US$665 million in 2018 and is expected to reach US$11.78 billion by 2025, with a CAGR of 39% from 2019-2025. This shows that while India's AI market is growing rapidly, it is still significantly smaller than the global market.
In terms of the impact on labor markets, there has been concern about AI leading to job losses. However, India's experience with the Information Technology sector suggests that technological innovation can lead to the creation of new jobs. In the 1990s, there were fears of computers replacing humans, but the IT sector ended up creating a large number of new jobs. Today, the IT-BPM industry is India's largest private sector employer, accounting for ~11% of the urban workforce.
With AI, there is evidence that the automation of repetitive tasks has led to the disappearance of middle-skilled jobs and increased wage inequality. However, there is also growing demand for labor trained in advanced technology and adept in socio-behavioral skills. Experts suggest that emerging technologies may increase the productivity of existing jobs as well as create new roles which are difficult to envisage today. These new roles may require a combination of skills such as higher technological acumen, better empathy, people connect and critical thinking.
In comparison, the United States and the European Union have also seen similar trends. In the U.S., there has been a significant increase in demand for high-skilled tech jobs, while in the EU, there has been a focus on ensuring that AI development is ethical and transparent, with guidelines released on trustworthy AI.