The impact of artificial intelligence on productivity in the workforce is becoming increasingly evident. According to a recent report by PwC, industries that are most likely to utilize AI technologies have experienced a significant growth in productivity. The data shows that professional and financial services, as well as information technology, have seen a remarkable 4.3% increase in productivity between 2018 and 2022. This growth rate is nearly five times faster than sectors such as construction, manufacturing, retail, food, and transport, which only saw gains of 0.9%.
The rise of artificial intelligence in the workplace is raising hopes for a boost to the broader economy. PwC’s report suggests that the adoption of AI could help countries break free from low productivity growth cycles, leading to overall improvements in economic growth, wages, and living standards. Carol Stubbings, the leader of PwC Global Markets and Tax & Legal Services, highlights that highly productive sectors are experiencing faster growth in job ads for individuals with AI skills. This correlation indicates that AI is playing a pivotal role in driving productivity in these industries.
One of the key factors contributing to the productivity growth in AI-driven sectors is the deployment of generative AI. This technology is enabling companies to leverage AI capabilities even without specialized AI expertise. According to Stubbings, the trend of productivity growth spurred by AI is expected to accelerate as more businesses adopt generative AI solutions. However, she also acknowledges the challenges posed by the rapid pace of change associated with AI implementation.
The International Monetary Fund’s head, Kristalina Georgieva, has warned that AI is making significant waves in the global labor market. She likened the impact of AI to a “tsunami,” predicting that it will affect 60% of jobs in advanced economies within the next two years. PwC’s report, which analyzed job ads from 15 affluent countries using OECD data, revealed that positions requiring AI skills carry a substantial premium. In the United States, these roles offer an average pay increase of 25%, while in Britain, the premium stands at 14%.
The integration of artificial intelligence into various industries is reshaping the landscape of productivity and job markets. While AI presents opportunities for increased efficiency and growth, it also poses challenges in terms of job displacement and skills requirements. To harness the full potential of AI, organizations must be prepared to adapt to the evolving technological landscape and invest in upskilling their workforce for the future.