While artificial intelligence (AI) might seem like science fiction, McKinsey management consultants suggest that around 20% of jobs could be automated in the near future. Even if that’s only partly true, the effect on the share prices of companies that implement AI projects is likely to be significant. It may double their market capitalisation.
Most estimates about AI’s effect on the economy focus on its impact on employment, suggesting that AI will displace between 30% and 50% of the workforce. However, it is unclear how these figures have been calculated and what timeline they cover. The estimates also fail to consider the number of jobs that are likely to be created by AI. McKinsey’s research makes an interesting point about the proportion of a job that is replaced rather than the number of jobs replaced, but it’s way too early to tell if this forecast is true.
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