The Impact of AI in the Global Economy and its Implications in Industry 4.0 Era

Abstract

Industry 4.0 refers to the current trend of automation and data exchange in manufacturing and other industries. AI, or artificial intelligence, plays a significant role in Industry 4.0 by enabling the development of intelligent machines that can work alongside humans and optimize industrial processes. They are many ways in which AI is impacting the global economy in the context of Industry 4.0: Improved Efficiency: AI-powered machines are capable of analyzing large amounts of data and identifying patterns that are beyond human capabilities. This enables them to optimize production processes, reduce waste, and improve quality control. AI can enable businesses to develop new revenue streams and business models by providing insights into customer preferences and behaviors and enabling the creation of new products and services. AI is expected to drive economic growth by improving productivity and efficiency, creating new industries and jobs, and enabling businesses to expand into new markets. The role of AI in Industry 4.0 is significant, and it is transforming the global economy in many ways. As AI continues to evolve, it will play an increasingly significant role in shaping the future of manufacturing and other industries. This review paper through adequate light on the major influences of AI on the world economy and its possible implication in India. This paper will be based on the extensive literature review of previous papers and finally drawn conclusion.