Artificial intelligence (AI) has captured the imagination of people across the world. While AI and machine learning are not new, the introduction of freely available generative AI tools thrust AI into a spotlight from a niche topic to one discussed from board rooms to capitals to kitchen tables. According to McKinsey, AI is expected to add up to $4.4 trillion annually to the world economy, making it the biggest commercial opportunity since the dawn of the internet. Much of AI’s potential has yet to be imagined. But already we are seeing how it can:
- Increase efficiency and productivity: AI can automate repetitive tasks, enabling businesses to streamline operations and allocate resources more effectively.
- Enhance customer and employee experience: AI-powered chatbots and virtual assistants can provide personalized and round-the-clock customer support, improving satisfaction and loyalty.
- Improve analytics: AI can analyze vast datasets quickly, uncovering patterns and trends that humans may miss. This helps organizations make better data-driven decisions and can identify gaps in markets.
- Aid innovation: AI creates opportunities for businesses to develop innovative products and services, as well as explore new business models that were previously unfeasible.
But with any change comes new risks. AI risks include:
- Legal and reputational risks: AI systems can perpetuate biases and discrimination if not properly designed and monitored. This can lead to legal and reputational risks for businesses.
- Job displacement: Automation powered by AI can replace certain job roles, leading to potential unemployment and social disruption.
- Data privacy and security: AI relies on vast amounts of data. If it’s not secure, data breaches, cybercrime and loss of sensitive information can create a range of problems with far-reaching implications.
- Lack of transparency: Complex AI algorithms can be difficult to interpret, making it challenging to understand how decisions are made. This lack of transparency can raise concerns about accountability and trust.
Explore our Insights about AI to understand how you can use AI to create opportunities, improve productivity and mitigate risk.
