Artificial Intelligence Could Inject $4.4 Trillion into the Global Economy, Yet the Digital Divide Must Be Addressed: WEF Insights
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Synopsis
At the WEF meeting, it was revealed that AI may contribute up to $4.4 trillion annually to the global economy. However, addressing the digital divide that affects billions is crucial for ensuring equitable access and opportunities for all.
Key Takeaways
- AI could add $2.6 trillion to $4.4 trillion yearly to the global economy.
- Over 2.5 billion people lack Internet access.
- Approximately 24 million Americans lack high-speed internet.
- AI can generate generational wealth if biases are managed.
- Three waves of opportunity for AI value creation exist.
Davos, Jan 21 (NationPress) While Artificial Intelligence (AI) has the potential to contribute between $2.6 trillion and $4.4 trillion to the global economy each year, it is crucial to consider the impact on careers, lives, and communities that may be disrupted — particularly those already excluded from the global digital economy, as highlighted in a presentation at the WEF annual meeting on Tuesday.
“To begin with, we must address the existing digital divide. Despite the swift spread of the Internet worldwide, more than 2.5 billion individuals still lack access. Almost a third of the global population is unable to utilize essential online services in today's digital landscape, such as finance, education, and healthcare,” stated Robert F. Smith, founder and CEO of Vista Equity Partners, a leading private equity firm in the US.
Disparities are present even in developed nations. In the US, approximately 24 million people do not have access to high-speed internet. This lack of access hinders millions of Americans from utilizing the services that only broadband can provide, preventing full participation in the economy, according to the report.
Instead of creating a new economic divide, AI can serve as a significant source of generational wealth, provided that we take the necessary measures to avoid reinforcing existing racial and gender biases. The innovation and economic growth driven by AI hold the potential for widespread prosperity.
As AI progresses, three distinct phases of opportunity will emerge for value creation. We are already witnessing the first phase benefiting hardware vendors. The second phase will favor super scalers like Microsoft, Google, and Oracle, which can widely offer connectivity to computing resources. The third phase will advantage enterprise software vendors supplying AI and GenAI solutions atop their current offerings, according to Smith.
These three verticals are where we need to concentrate our efforts for equitable development and deployment of GenAI.
“The positive aspect is that, unlike the previous digital revolution, we now possess the advantage of foresight. As AI evolves and established businesses alongside new startups scale their products, enhance features, and capture value at every stage, we must ensure that individuals in all nations have access to the Internet, AI education and tools, as well as necessary processing power. As we stand at this pivotal moment, we must think broadly and act decisively to fully unlock the potential of GenAI,” Smith concluded.
