The Impact of Artificial Intelligence on Productivity

Abstract

Aim . The presented study aims to determine the impact of artificial intelligence as a modern breakthrough technology on productivity, to explore how the implementation of artificial intelligence technology will affect the preservation of jobs in different industries, what opportunities it will create for business in terms of increasing productivity along the entire value chain, and how this will affect GDP growth and key economic indicators in various countries. Tasks . The authors identify priority directions for the development and implementation of artificial intelligence in various economic sectors; analyze econometric results obtained during previous studies; substantiate the advantages and opportunities of artificial intelligence to facilitate its implementation in the business processes of organizations. Methods . This study uses the methods of analysis, systematization, and correlation analysis. Results . Various definitions of artificial intelligence, levels of its functionality, and fields of application are analyzed. The ways and prospects of using artificial intelligence in different countries are examined regressively by industry and geographical region, with an emphasis on the ways of using artificial intelligence systems (wired/special and adaptive) and automation technologies in the implementation of artificial intelligence. The potential effects of artificial intelligence at each stage of the company's value chain are described. Examples from different industrial sectors are provided. Based on the correlation analysis, the relationship between the implementation of artificial intelligence and productivity growth is presented. Conclusions . Implementation of artificial intelligence has a global economic impact on key economic indicators such as employment and GDP, which is especially important in the current crisis situation. The effect of artificial intelligence should be enough to maintain the rate of economic growth in the long term. The direct impact of artificial intelligence on GDP is due to increased income and employment in firms and industries engaged in the development or production of artificial intelligence technologies. Secondary (indirect) effects will come from other sectors that use certain artificial intelligence technologies to increase the efficiency of their processes and solutions and improve the accessibility of information. Regions implementing an artificial intelligence technology of higher quality can expect its impact on labor productivity to be even more significant.