WEF: AI's Potential to Boost Economy by $4.4 Trillion Requires Addressing Digital Divide
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Synopsis
At the World Economic Forum's annual meeting, insights revealed that AI could infuse $2.6 trillion to $4.4 trillion into the global economy. However, it is imperative to address the disruptions it may cause to careers and communities, particularly those excluded from the digital economy.
Key Takeaways
- AI can contribute $2.6 trillion to $4.4 trillion annually.
- Over 2.5 billion people lack internet access globally.
- 24 million Americans do not have high-speed internet.
- AI can create generational wealth if biases are addressed.
- Three waves of opportunity exist for capturing AI value.
Davos, Jan 21 (NationPress) While artificial intelligence (AI) has the potential to contribute between $2.6 trillion and $4.4 trillion annually to the global economy, it is crucial to consider the impact on careers, lives, and communities, especially those already marginalized in the global digital economy, as highlighted in a presentation at the World Economic Forum's (WEF) annual meeting on Tuesday.
"To begin with, we must address the existing digital divide. Despite the rapid growth of internet access worldwide, over 2.5 billion individuals still do not have connectivity. Almost a third of the global population lacks access to essential online services like finance, education, and healthcare," stated Robert F. Smith, founder and CEO of Vista Equity Partners, a leading private equity firm in the US.
Disparities also exist within developed nations. In the US alone, nearly 24 million people remain without access to high-speed internet. This lack of connectivity prevents millions from utilizing crucial services available only through broadband and from fully engaging in the economy, as noted in the report.
Rather than creating a new economic divide, AI can be a significant driver of generational wealth, provided we take measures to avoid replicating and perpetuating racial and gender biases. The innovation and economic growth spurred by AI could pave the way for widespread prosperity.
Currently, we are positioned for three distinct waves of opportunity to capture value. The first wave is already benefitting hardware vendors. The second wave will favor super scalers like Microsoft, Google, Oracle, and other large companies capable of providing extensive connectivity to computing resources. The third wave will advantage enterprise software vendors delivering AI and GenAI solutions alongside their existing offerings, according to Smith.
These three verticals are where we must concentrate our efforts to promote equitable development and deployment of GenAI.
The silver lining is that, unlike during the digital revolution, we possess the foresight to guide us. As AI progresses and established firms alongside startups scale their products, enhance features, and capture value at each development stage, we must pledge to ensure that everyone, in every nation, has access to the internet, AI education and tools, and necessary processing power.
"At this crucial juncture, we need to think broadly and act resolutely to unlock the full potential of GenAI," Smith concluded.
