Amazon is not only a key player in the Artificial Intelligence (AI) space, thanks to Alexa, its virtual assistant, but AI is also present in many facets of the company’s operations. Amazon employs Artificial Intelligence in a novel way by sending you product recommendations before you ever consider purchasing them. They gather a lot of information about each person’s purchasing patterns and are confident in the way the information they gather enables them to offer products to their consumers and, more recently, predict what they will need even before they do, using predictive analytics. This is a prime example of AI in the new economy.
Amazon Go is a new convenience store idea offered by America’s largest e-tailer at a time when many brick and mortar retailers are battling to stay relevant. There is no checkout process necessary, unlike other retailers. Via the Amazon Go app installed on your phone, the businesses’ Artificial Intelligence systems track the products you pick up and automatically bill you for them. Because there is no checkout, you load your own bags with goods, and cameras follow your every step to identify each item you place in your bag so that you can be charged for it.
Amazon is one of those new economy companies that is revolutionizing retail and consumption. Today, the company focuses on the use of Artificial Intelligence (AI) to build a better product that can ease the entire customer experience and journey.
(Source: Bernard Marr & Co.)
Artificial Intelligence and New Economy: What the data says
In 2030, AI might contribute up to $15.7 trillion to the global economy, which would be more than China and India’s total current GDP. $9.1 trillion of this is projected to result from consumption-side effects, with $6.6 trillion coming from higher productivity.
By 2025, 80% of retail CEOs anticipate their companies to use AI technology. The vast majority of retail executives polled think their business will use AI automation in the following three years. New economy examples increase as more companies adopt AI in their systems.
Globally, there are more than 1 billion knowledge workers. Consumer (35%), technology (25%), healthcare (11%), industrial (10%), finance (10%), and media/entertainment/telecom (5%), are the industries currently hiring the most knowledge employees. By the flow of information and expertise, knowledge workers are pushing the global economy towards a data-centric strategy and transforming new economy businesses.
Read More: The Role of Blockchain Technology in New Economy Industries
How AI benefits New Economy Companies
The McKinsey Global Institute’s latest study makes an effort to simulate how AI applications would affect the global economy. Secondly, it develops a bottom-up perspective on how to accept and absorb AI technology by building on an understanding of business behavior and the dynamics of diverse sectors. Second, it considers the potential disruptions that nations, businesses, and workers may encounter when they adopt AI solutions.
Here’s how AI can help new economy companies achieve growth and stay relevant –
- Enhanced productivity
- Based on the automation of repetitive processes, AI is expected to increase productivity, which would likely have an impact on capital-intensive industries like manufacturing and transportation. Increased use of technologies like robotics and driverless cars will be part of this. New economy industries use AI technologies to supplement and support their current staff and will increase productivity. It will necessitate making investments in software, hardware, and systems with enhanced, assisted, and autonomous intelligence.
- Based on the automation of repetitive processes, AI is expected to increase productivity, which would likely have an impact on capital-intensive industries like manufacturing and transportation. Increased use of technologies like robotics and driverless cars will be part of this. New economy industries use AI technologies to supplement and support their current staff and will increase productivity. It will necessitate making investments in software, hardware, and systems with enhanced, assisted, and autonomous intelligence.
- Personalized products
- It will be even more crucial to make individualized, superior AI-enhanced goods and services available since increased consumer demand will result in increased data production. Increased consumption starts a positive feedback loop that results in more data touchpoints, more data, better insights, better goods, and more consumption. Whilst the advantages will be felt worldwide, North America and China are anticipated to benefit from AI services the most.
- It will be even more crucial to make individualized, superior AI-enhanced goods and services available since increased consumer demand will result in increased data production. Increased consumption starts a positive feedback loop that results in more data touchpoints, more data, better insights, better goods, and more consumption. Whilst the advantages will be felt worldwide, North America and China are anticipated to benefit from AI services the most.
- Facilitate scalability
- AI and automation may help highly scaled organizations grow, but they will also make it possible for smaller players and even individuals to take on project work that is currently primarily handled by larger businesses. Additional potential outcomes include heightened competitiveness, businesses expanding outside of their former core competencies, and a widening gap between technical leaders and laggards across all industries. Early adopters, or businesses who fully implement AI tools over the course of the following five to seven years, will probably reap the most rewards.
The future of AI
What future applications might Artificial Intelligence have? Although it is difficult to predict how technology will advance, the majority of experts believe that those “commonsense” jobs will become even simpler for computers to perform. That implies that robots will be very practical in daily life.
According to Russell Glenister, CEO and founder of Curation Zone, “AI is starting to make what was once thought to be impossible attainable, like driverless cars.” Fast GPUs and access to training examples are two essential factors that make driverless cars possible. A large amount of precise data is needed to train driverless automobiles, and completing the training quickly is essential. Although the CPUs were too slow five years ago, the invention of GPUs made everything possible.
Read More: Creating Economic Opportunity with New Economy and FinTech
Conclusion
Through the use of Artificial Intelligence, several industries are about to undergo a transformation. Significant deployments by companies like Tntra services have already changed decision-making, business models, mitigating risk, and system stability in the financial, national security, healthcare, criminal law, transportation, and smart city sectors. These changes are producing significant economic and social advantages. Yet, how AI systems develop will have a significant impact on society in general. It matters how ethical dilemmas are resolved, legal constraints are overcome, and the level of transparency is demanded of AI and data analysis methods.