Everyone knows that the era of Artificial intelligence has arrived. Recent rapid advancements in AI has created
ardent interest all over the world. Basically,
what is AI? The father of artificial intelligence John McCarthy has
defined AI as ” the science and engineering of making intelligent machines
especially intelligent computer programs”. AI 
develops machines with humanlike intelligence i.e. process information
and producing output in a manner similar
to how humans behave, comprehend and solve problems.

AI creates
this possibility to develop such machine and adapt accordingly. Let us take an example of visiting a website more than
once, fed with user’s online data behavior, a
network of AI algorithms will work in the background
processes, makes an intelligent
guess, and displays advertisement that can retain the user’s attention. Thus AI is the technology that will allow businesses
to be informed about client’s needs even
before they want it. This is a great achievement which can improve productivity
by the copious amount and merits the need
of its mention these days.

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Importance
of AI cannot be ignored as we see it helping us in our day-to-day activities from
being voice activated assistants in tablets, smartphones and computer’s  (like Amazon’s Alexa) that follows user’s
voice command to complete assigned tasks to using highly sophisticated tech
tools like Google’s AlphaGo, IBM Watson  and Arria NLG(natural language generator) that
acts as an analyst and writer in one, crunching millions of data points per
second , processing and analyzing it so as to generate easy to read reports much
faster than human brain thereby allowing user’s to focus on high-value tasks. These are just the tips of
the iceberg we see showing how artificial
intelligence helps us, business and
society at large. According to various studies and researches, new AI technologies will fuel global economic growth as
productivity and consumption increases in the near future. The future looks
bright with AI just scratching the surface from developing efficient power
transformers, smarter developed supply chains, fully automatic transportation
systems to solving world problems of
health and food shortage. AI has unparalleled potential and is expected in the
coming times to help improve and perform tasks more efficiently and accurately ,to
save society’s cost, money and time,  to enable
huge production and labour productivity, to deliver uninterrupted services to
individuals in the country and  to overall
optimize the resources available to the generation so as to help in the overall
economic development and transformation of economy to  better serve social, economic needs.

Is
Artificial Intelligence the way to boost economic growth?

Artificial
Intelligence has the potential to impel and enhance economic growth. The
combination of man and machine can be used to solve the economies difficult
problems. As global tech major Accenture already calls artificial intelligence
as another new and tremendously important factor of production both for now and
future one can simply infer that AI will help in labor and capital productivity as these are major investment
factors of production which can help in introducing, developing and boosting
new sources of growth. Hence AI helps in expanding the role of people, entrepreneurs, government, organizations crediting
them to experiment and innovate and devise various means to propel growth in
business and economy as a whole. It explains three ways that can increase India’s economic growth
through artificial intelligence can be by organizing intelligent automation and
augmenting and automating complex mundane human 
tasks that can be taken over by AI ,empowering current workforces with
new skills, knowledge to cope and help in advancement of AI, and to build
and  enhance AI innovation that can be
used for structural economic transformation which can hence result in development
of Indian economy.

Mark Purdy who is the
Managing Director and Chief Economist of  Accenture Research has emphasized on the
importance of AI and how “AI can have a pervasive impact on business profits
because it affects nearly every part of the organization from production, to sales, to innovation.” The
idea is by taking up routine work by AI,
the employees can focus their concentration on doing
high-value work.

It was the research conducted
by Accenture and Frontier economics which estimated economic impact of Artificial
intelligence on various important economies of the world using  2035 as the target year to absorb new
technology impact, segregating the study into two outlines- one was the
baseline scenario that gave annual estimated economic growth rate  for future 
under current assumptions and the other was AI scenario which showed
expected economic growth once AI effect has been added to the economy. The results were published in the report “Rewire for Growth” and most important
ones are explained below.

                                   

                                       Figure 1: Economic impact
of AI on various economies

                                                     (Source: Rewire for growth report, 2017)

Here, figure
1 clearly shows the real gross value of
major economies of the world have a higher growth if AI is taken into
consideration in the economy with India and China benefitting the most than
excluding it as seen in the case of baseline.                                                           

Examining
the Case of India further, figure 2 explains how With AI absorbed in the
economy  India’s GVA will accelerate the
economic growth by 957 billion US dollars, adding 1.3 percent per year to its growth
thereby raising national income by 15 percent in 2035.The size of the Indian economy in 2035 is estimated to be 6,397
billion US dollars if we don’t take AI. However, including artificial
intelligence as a factor, it is expected
to raise India’s size to 7.355 billion US dollar. The figure also shows if AI  is categorized into Intelligent automation, augmentation
and total factor productivity what would be their individual contribution
towards India’s economic growth.

                                    

                                 Figure
2: Indian economy Gross Value added in 2035 by AI.

                                            (Source: Rewire for Growth, Accenture, 2017.)

Indian government
to provide social welfare (currently Indian Railway
and RailTech are working with ISRO to
build safety mechanisms, using AI and machine learning to make train travel
safer) and Indian firms to transform their businesses in various sectors like
health, education, finance, automobile, and
retail are increasingly harnessing AI. .One
example is Manipal
Hospitals, Bengaluru,    that shows how AI is increasingly being tapped
in healthcare by providing better diagnostics and improving patient experience with AI-powered digital
intelligence solutions that are using IBM Watson for Oncology, a
cognitive-computing development platform,
to help doctors identify personalized
cancer care options across the country.Looking
at global trends, large businesses and digital platform and will play a key
role in innovating and unlocking the economic value of AI. Realising AI’s potential There
is a need to set up clear national based AI development
plan for India’s  economy similar
to what other countries are doing, educate people about AI and its growing
importance and enhance research in this area.

One important step in the right direction
has been shown by Nirmala
Sitharaman  the then Commerce  Minister who set up an 18 member  Artificial Intelligence Task Force last year in
August  to accelerate  and enable economic  agenda of development using artificial
intelligence  in the fields of  national security, IT and hardware, retail,
customer engagement, education, finance,
healthcare, agriculture, develop deeper expertise and provide tech-enabled
utility facilities to citizens.

Hence, there
is a need to make most of this AI opportunity. AI will benefit the mankind and expand
people’s potential.  The government, policymakers, business leaders, organization, and
institution must be united to work towards the AI revolution.This will only help in accelerating our economic opportunities in the coming years. 

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