Modern Times

Artificial intelligence is gradually invading our phones and computers before transforming our business, our employees, our training and our way of life.

Industrial Revolution

An industrial revolution is a period of technical, economic, social and cultural transformation linked to the industrialisation of production. The first industrial revolutions were triggered by the introduction of new energies: the steam engine in the 19th century, then oil and finally electricity. Information technology at the very end of the 20th century, followed by data management, were the first not to have their origins in energy. But they have all the hallmarks of a genuine industrial revolution.

The use of artificial intelligence and data management is set to revolutionise the daily lives of the world's population. Artificial intelligences are gradually entering the mainstream. ChatGPT is the best known, but all the major companies are adding their own AI: Copilot for Microsoft, OpenAI for Apple, to name but two.

The use of AI will revolutionise the way we work and the way we do business. This is the subject of numerous reports, in particular McKinsey & Company's "The economic potential of generative AI".

Accelerated growth and rapid adoption

The "adoption point" is a benchmark often used to characterise the speed of this revolution. It represents the point at which 50% of work in 2016 would be automated. Studies in 2017 estimated this to be in 2060. The latest estimates show a significant acceleration in the adoption of AI by the population, with a revised date of 2045.

Time automation of current activities and adoption point

The consequence of the widespread use of AI is obviously increased economic growth. Economic growth, however, has been slowing for the past two decades due to structural changes in the population (ageing in particular). Whereas employment growth contributed 2.5% of total economic growth in the 1970s, this figure is around 0.8% in the 2010s.

World real GDP economic growth (%)

Since the 1990s, therefore, economic growth has been driven mainly by productivity growth. This productivity will be boosted by the adoption of artificial intelligence. According to Goldman Sachs, AI could add approximately 1.2% to economic growth. According to McKinsey, between USD 2.6 and 4.4 trillion in value could be created (for comparison, the UK's GDP is USD 3.1 trillion).

Estimated effects of AI adoption on growth (%)

This growth is likely to be greater in developed countries than in emerging countries. One of the reasons for this difference is the faster adoption of AI in developed countries due to higher salaries.

Time automation of current activities by country

Professions and sectors transformed

The other reason for the difference in impact on economic growth between developed and emerging countries is the structure of jobs. Emerging countries are less exposed to the automation of tasks by AI.

Share of full-time jobs exposed to automation by AI (%)

Not all professions are equally exposed to the use of AI. Sales, marketing and software development are the functions that will be most affected. Work in this type of activity could be greatly improved and will have a major financial impact on the company.

Technological impact of the use of AI on business functions

But all functions will be affected. For example, a healthcare professional or a legal executive. While 32% of the latter's work and 29% of the healthcare professional's work are automatable today without AI, with the adoption of AI, these figures rise to 62% and 43% with the adoption of artificial intelligence.

Impact of AI on the potential for automation as a % of employment in 2023

This means that the most highly trained jobs will be the most affected by the integration of AI into industrial processes.

Share of industrial jobs exposed to AI (%)

The corollary of these projections is that different industries will be impacted differently. Construction, for example, has very few jobs that can be automated by AI, whereas sales, financial operations or legal advice are almost exclusively tasks that can be improved by artificial intelligence.

Share of industries exposed to IA

The banking sector is one of those that will have to adapt to these changes, while at the same time being able to generate more revenue through increased productivity. A genuine reinvention of customer interaction is taking place. Banks represent a sector that is well-suited to the use of AI, because of the significant legal constraints, the jobs that can be automated, the large IT systems and the large amount of data. The integration of AI will help to reduce risks through better control of fraud and risks and improved employee performance.

Companies and apprenticeships transformed

Companies are preparing to enter a new world.  Nearly 30% of European and US listed companies now mention Artificial Intelligence in their comments to investors. Adoption is accelerating across all sectors.

Share of public companies mentioning AI in comments on their results (%)

Share of companies using AI (%)

Transforming learning, improving the human being

Unlike previous industrial revolutions, it is not the least skilled jobs that will be most transformed by the use of AI. It is the most advanced tasks that can be carried out by AI: marketing, sales, legal, etc. Tasks that are reserved for people with a higher level of education.

While 28% of the tasks performed by a person with a master's or doctorate degree can now be automated, this figure rises to 57% with artificial intelligence. The higher the level of education, the fewer traditional tasks could be automated without AI. AI changes this conclusion and puts all qualifications at the same level of automation.

Impact of AI on the potential for automation through training

Human beings will thus be able to improve certain abilities: creativity, coordination with other agents, problem solving, language, foreign languages, presentation, social and emotional perception, and many others.

The use of artificial intelligence opens up tremendous prospects not only for the economy but also for the world's population. It is the beginning of a veritable industrial revolution. We must not underestimate the major and rapid changes to come.