The business landscape is on the cusp of a transformative era characterised by the rise of artificial intelligence (AI) and associated technologies, as highlighted by Mirek Dusek, managing director of the World Economic Forum (WEF), during a recent event in Dubai. The year 2024 is being noted for significant technological advancements across various sectors, including retail, energy, health care, and logistics.
Dusek described this transformative period as the "intelligent age," a phase characterised by the convergence of multiple technologies such as AI, quantum computing, and clean energy. "We are living in an era of technological renaissance," he remarked, emphasising that the term reflects the proliferation and integration of various technologies rather than focusing solely on AI.
The ongoing AI revolution stands as a key component of this intelligent age, with generative AI gaining particular prominence. Dusek acknowledged that while generative AI is a relatively new topic of discussion, the technology has been developing for some time. The potential benefits of combining AI with other technology fields extend beyond traditional industrial applications, leading to breakthroughs in energy production and sustainability efforts. "The AI revolution is a big piece of the intelligence age," he asserted, noting that advancements in both quantum technologies and clean technology are significantly reshaping industries.
The financial implications of AI are substantial, with PwC estimating that it could contribute up to $15.7 trillion to the global economy by 2030—an economic output larger than the combined current outputs of China and India. This projection includes anticipated gains of $6.6 trillion from increased productivity and $9.1 trillion stemming from enhanced consumer benefits. Additionally, the generative AI market alone is expected to witness impressive growth, with a valuation forecasted at $16.87 billion this year and an anticipated annual growth rate of 37.6 per cent from 2025 to 2030, as reported by Grand View Research.
Generative AI has found applications in a variety of fields, including software development, life sciences, healthcare, and finance, where it has streamlined labor-intensive tasks and ignited a global technological competition to harness its capabilities. However, Dusek also cautioned against the accompanying risks, which include potential disruptions to the labour market, intellectual property infringement, the spread of misinformation, and national security threats.
Despite the potential for substantial economic growth and productivity improvements, Dusek stressed that the responsible development of AI technologies is crucial. "If done right, and if done responsibly, we could really reap the benefits in terms of dramatic increases in productivity," he explained.
In addition to the technological changes, Dusek pointed out that social and political factors are also reshaping economies and industries. He cited the emergence of geopolitical tensions, trade wars, and political polarisation as challenges that governments and businesses must navigate. "We are seeing an uptick in conflict overall around the world, and that, of course, is a huge drag on the economy, beyond the immediate suffering of people," he remarked, highlighting the implications of global conflicts on economic stability.
Dusek noted that the traditional focus on efficiency in multinational supply chains has now been supplemented by geopolitical considerations. "Before Covid, many big multinational companies and their decision-makers didn't really think geopolitics was material," he stated, indicating a shift in perspective brought on by recent global events.
He commended the United Arab Emirates for its proactive approach to governance and adaptability in the face of contemporary challenges. Dusek emphasised the necessity for governments to create regulatory environments that foster global economic competitiveness. "If they are not nimble enough; if they do not have access to the full spectrum of information, the regulatory environment they create could set them back in how they can be competitive in this new global economy that is emerging," he concluded.
Source: Noah Wire Services