Blog: Artificial Intelligence and Fourth Industrial Revolution set to make huge contribution to world economy – Gulf Today
Technology enthusiasts look on as a humanoid robot shows its skills. Reuters
This is how the Fourth Industrial Revolution (4IR) and Artificial Intelligence (AI) techniques can contribute to revive the world economy and how Artificial Intelligence Journalism can contribute in increasing global media spending. The emergence of tens of thousands of TV channels, tens of thousands of satellites will revolutionize the media industry, driven by the tremendous advances in Artificial Intelligence (AI) technology.
Looking to the future in Artificial Intelligence, the world is expected to invest more than $ 5 trillion in Artificial Intelligence technologies by 2050, this will contribute strongly in the growth of Artificial Intelligence (AI) journalism. This compared to what is currently spent, estimated at only $ 12.4 billion, could reach $ 232 billion in 2025, according to “KPMG” report.
The Artificial Intelligence sector is also expected to contribute in adding more than $50 trillion to the world economy of 2050, nearly 20% of the Global Gross domestic product (GDP) at that time, according to some estimates. According to PWC research, the Global GDP will be 14% higher in 2030 as a result of AI – the equivalent of an additional $15.7 trillion. This makes it the biggest commercial opportunity in today’s fast changing economy.
Increased consumer demand resulting from AI-enabled product enhancements will account for the rest. The greatest economic gains from AI will be in China (26% boost to GDP in 2030) and North America (14.5% boost), equivalent to a total of $10.7 trillion and accounting for almost 70% of the global economic impact.
Labour productivity improvements are expected to account for over half of all economic gains from AI until 2030. According to the PWC report, Chinese GDP is estimated to reach around $58.499 trillion in 2050, compared to the US’ $34.1 trillion. The Asian giant will account for 20% of the world’s economy.
The world economy will be above $290 trillion. China aims to spend a huge amount on the AI industry by 2030 to become the world leader in artificial intelligence, as the government considers Artificial intelligence is a new engine of economic development.
Artificial Intelligence spend in United States has increased at 77.3% during 2018 to reach $ 4,180 million. Over the forecast period (2019-2025), spend on AI is expected to record a CAGR of 27.8%, increasing from $ 6,452.8 million in 2019 to reach $ 35,996.4 million by 2025, according to Research and Markets report.
Overall, the biggest absolute sector gains will be in retail, financial services, and healthcare as AI increases productivity, product value and consumption. By 2030, an additional $9trn of GDP will be added from product enhancements and shifts in consumer demand behaviour, as AI driven consumption gains overtake those of productivity, according to PWC.
The Global spending will reflect positively on Artificial Intelligence and the Fourth Industrial Revolution technology, especially in many areas like media industry and the growth of Artificial Intelligence journalism. According to PWC’s Global Entertainment & Media Outlook 2018-2022, the Global E&M revenue in 2018 reached $2 trillion, and is estimated to reach 2.5 in 2021.
AI global spending will help in four fundamental themes:
1: Intelligence journalism in terms of increasing the number of global users (receivers) who receive media messages where the content is easily accessible to the largest number of audiences without geographic or international borders, especially from users of smart phones or satellites. By 2030, the number of smart phone users is expected to reach 9 billion.
2: The expansion of global spending on Artificial Intelligence contributes in the growth of Artificial Intelligence journalism in terms of the content “the message”, where the creators of the media are verifying to cover all the concerns of the target audience around the world which are more than 9 billion “target audience” of all media.
3: Global spending on artificial intelligence will contribute to the growth of Artificial Intelligence journalism in terms of “means” with multiple channels of communication, and reaching to the masses —”users” of phones, television, radios, social media, and other various modern and fast applications that will be different to what we use today
4: Global spending on artificial intelligence will contribute to the growth of Artificial Intelligence journalism in terms of “media owners” where the ownership of the media varies between individuality and institutional, and partnerships, where an individual can have more than 100 of Mass Media options with minimal costs, and big number of target audience.