The Secrets of AI Value Creation

2Three Factors of AI Business Value Creation

And because the upsides are so obvious, it's particularly important to step back and ask ourselves, what are the possible downsides? … How do we get the benefits of this while mitigating the risk?

—Emily Bender (professor of computational linguistics at the University of Washington)

The interest in AI remains substantial due to its anticipated influence on value creation in the coming decade. According to PWC, the potential contribution of AI to the global economy could reach $15.7 trillion by 2030, fostering a 26.1% GDP enhancement for China and a 14.5% growth for North America (PwC 2017). This potential impact constitutes approximately 70% of the worldwide value creation of AI. Similarly, McKinsey has estimated an annual global impact of AI of $13 trillion by 2030 (McKinsey 2018b).

Particularly with the advent of cutting‐edge AI technology such as generative AI and its potential to influence workforce productivity, these forecasts might require adjustments. According to a study by McKinsey, generative AI could potentially add $2.6 to $4.4 trillion in value to the global economy alone (McKinsey 2023). However, these assessments often overlook the associated implementation costs and are contingent on the extent of AI adoption within corporations and government bodies, as well as their proficiency in deploying this new technology (McKinsey 2018b).

At an organisational level, AI's influence is evident in the accomplishments of various ...