Accenture Report: Artificial Intelligence Has Potential to Increase Corporate Profitability in 16 Industries by an Average of...
June 21 2017 - 12:01AM
Business Wire
Businesses that successfully apply artificial intelligence (AI)
could increase profitability by an average of 38 percent by 2035,
according to a new report from Accenture (NYSE:ACN). The
introduction of AI could lead to an economic boost of US$14
trillion in additional gross value added (GVA) across 16 industries
in 12 economies.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170620006519/en/
Annual growth rates by 2035 of gross
value added (a close approximation of GDP), comparing baseline
growth to an artificial intelligence scenario where AI has been
absorbed into a sector's economic processes (Graphic: Business
Wire)
To capitalize on the opportunity, the report identifies eight
key strategies for successfully implementing AI that focus on
adopting a human-centric approach and taking bold and responsible
steps to applying the technology within businesses and
organizations.
“Artificial intelligence will revolutionize how businesses
compete and grow, representing an entirely new factor of production
that can ignite corporate profitability,” said Paul Daugherty,
chief technology & innovation officer, Accenture. “To realize
this significant opportunity, it’s critical that businesses act now
to develop strategies around AI that put people at the center, and
commit to develop responsible AI systems that are aligned to moral
and ethical values that will drive positive outcomes and empower
people to do what they do best – imagine, create and innovate.”
The report, developed by Accenture Research in collaboration
with Frontier Economics, measures the potential economic impact of
AI in GVA, a close approximation of gross domestic product that
accounts for the value of goods and services produced. The research
compared the economic growth rates of 16 industries in 2035 in a
baseline scenario showing current assumptions of expected growth,
to an AI scenario showing expected growth with AI integrated into
economic processes, finding that AI has the potential to increase
economic growth rates by a weighted average of 1.7 percentage
points.
Of the industries studied, information and communication,
manufacturing and financial services are the three sectors that
will see the highest annual GVA growth rates in an AI scenario,
with 4.8 percent, 4.4 percent and 4.3 percent respectively by 2035.
This translates to an additional US$6 trillion in GVA in 2035 for
these three sectors alone. Even labor-intensive sectors such as
education and social services —where productivity growth is
traditionally slow – will see a significant increase of US$109
billion and US$216 billion in GVA respectively.
In specifically examining industry profitability, the research
demonstrates that AI offers unprecedented opportunities. In
labor-intensive sectors, such as wholesale and retail, AI augments
the human workforce, enabling people to become more productive,
leading to a profit increase of almost 60 percent. In
capital-intensive industries such as manufacturing, AI powered
machines will eliminate faulty machines and idle equipment,
delivering constantly rising rates of return, resulting in equally
dramatic profit increases of 39 percent by 2035.
Regardless of industry, companies now have a significant
opportunity to apply AI and invent new business capabilities for
growth, profitability and sustainability. To prepare for a
successful future with AI, business leaders should consider the
following eight strategies:
- AI strategy and
leadership – attaining value from AI will demand
recognition and action from the top of the company; therefore, the
benefits must be made tangible to the C-suite and a roadmap is
essential.
- Reinvent HR into HAIR – the
Chief HR Officer’s role will not only be about managing human
employees, but will evolve to also manage human-machine interaction
-- or Human AI Resources (HAIR).
- Learn with machines – to adapt
their businesses to the changing nature of learning and employee
training, business leaders must focus on the needs of their
workforces, particularly in the area of agile skills
development.
- Appoint a chief data supply chain
officer – this position will be needed to construct an
integrated, end-to-end data supply chain.
- Create an open AI culture –
trust, openness and transparency are key for human and machine
relationships to work well; business leaders must shape the
corporate culture and guidelines to minimize the risks of a hybrid
workforce while maximizing the opportunities.
- Take the crowd into the cloud –
the next phase of innovation will combine crowd-sourced data in the
cloud with AI capabilities to create new and disruptive business
opportunities.
- Step beyond automation – with
recent strides in AI, companies need to take a step beyond to
harness the intelligence of dynamic, self-learning and
self-governing machines.
- Measure your return on
algorithms – Unlike traditional assets that depreciate over
time, AI assets gain value as time passes so CFOs will need new
financial metrics to properly assess the “Return on AI,” which
could include the value generated from each algorithm or a
combination of initial outlay and ongoing costs.
“By exploring the macroeconomic impact of AI as it matures over
the next few decades, it’s clear that organizations in every
industry have tremendous opportunities to apply AI to unleash
remarkable benefits,” said Mark Purdy, managing director, Accenture
Research. “By optimizing processes with intelligent automation,
augmenting human labor and physical capital, and propelling new
innovations, AI can drive dramatic and long lasting profitability
and economic growth.”
This research builds on the Why Artificial Intelligence is the
Future of Growth report released in 2016 that examined the economic
impact of AI across 12 developed economies. The report found that
AI could double annual economic growth rates by 2035 and boost
labor productivity by up to 40 percent by fundamentally changing
the way work is done.
To access the How AI Boosts Industry Profits and Innovation
report, visit www.accenture.com/aiboostsprofits.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 401,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170620006519/en/
AccentureHannah Unkefer, +
1-415-537-4848hannah.m.unkefer@accenture.com
Accenture (NYSE:ACN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Accenture (NYSE:ACN)
Historical Stock Chart
From Apr 2023 to Apr 2024