Society
Why AI will be the Catalyst for a new era of productivity growth
The dawn of the artificial intelligence (AI) era is often compared to transformative technological advancements such as the steam engine, electricity, and the personal computer. These innovations reshaped industries and daily life, and AI is poised to make an equally revolutionary impact, particularly on global productivity. While the effects of AI are still unfolding, experts believe that its ability to significantly boost productivity could happen in record time—just seven years, compared to decades for earlier technological revolutions.
This optimism comes at a critical juncture in the global economy. Post-pandemic, many countries are grappling with stagnating growth, rising inflation, and mounting debt, alongside the fundamental issue of declining productivity. In fact, several international agencies have noted that the productivity decline following the global economic downturn is unprecedented in recent history. Yet, AI is emerging as a way of hope, offering the potential not only to reverse this trend but to propel productivity to unprecedented heights.
The Economic Impact of AI: A Long-Awaited Leap
The global economy has struggled with low productivity growth for over a decade. For example, U.S. labour productivity growth averaged just 1.68% from 1998 to 2007, a period during which significant technological innovations like the internet and personal computers began to take root. But since 2010, productivity growth has fallen further, dipping to 0.38% between 2010 and 2019.
Some forecasts suggest that generative AI alone could add between $2.6 trillion and $4.4 trillion to the global economy
In this environment, AI is seen as the key to unlocking a new wave of economic efficiency. According to recent reports from the International Monetary Fund (IMF), AI technologies are expected to drive a substantial increase in global productivity. Some forecasts suggest that generative AI alone could add between $2.6 trillion and $4.4 trillion to the global economy.
To understand the potential of AI in the context of productivity growth, it’s useful to compare it to previous technological breakthroughs. The steam engine, for example, took about 60 years to fully transform productivity in manufacturing. Personal computers accelerated productivity growth over 15 years. By contrast, AI is expected to have a profound impact on productivity within just seven years.
Generative AI and Its Promising Future
Generative AI is a form of artificial intelligence that creates new content—whether it’s text, images, or even software code—based on patterns learned from large datasets. The speed with which generative AI is advancing is extraordinary. ChatGPT, released in November 2022, was quickly followed by a more advanced version, GPT-4, and other breakthroughs have appeared throughout 2023. This technology is expanding rapidly, with the capability to process tens of thousands of words in a minute, creating a powerful tool for automating complex tasks.
The applications of generative AI are vast and varied. In the business world, AI systems are already transforming industries like customer operations, marketing, software engineering, and research and development. The banking sector, for example, is projected to see an annual revenue increase of $200 billion to $340 billion through the adoption of AI. The retail and consumer goods sectors could see similar gains, potentially adding up to $600 billion annually.
AI’s potential to automate routine tasks could also free up significant amounts of time for human workers. Studies indicate that generative AI could automate between 60% and 70% of the tasks currently performed by employees, dramatically increasing efficiency. For knowledge-based workers, particularly in high-wage and high-skill sectors, AI is poised to amplify productivity by reducing time spent on routine tasks, such as data analysis, customer service, and administrative work.
Transforming Labour Markets: A Double-Edged Sword
However, the rapid rise of AI is not without its challenges, particularly when it comes to labor markets. Many fear that the widespread adoption of AI could lead to massive job displacement, especially in developed countries where white-collar jobs are more susceptible to automation. According to the IMF, while 30% of U.S. jobs may be at risk of automation by AI, only 13% of jobs in India are likely to be affected, reflecting the differing technological capabilities and labor market structures across the globe.
At the same time, AI’s integration into the economy is expected to create new job opportunities, especially in fields that require advanced technical skills, such as AI development, data science, and cybersecurity. This pattern mirrors historical trends: when previous technological revolutions disrupted the labor market, they also created entirely new industries and job categories. A recent study by MIT found that 60% of the jobs in America today did not exist in 1940, highlighting the constant evolution of the labor market in response to technological innovation.
AI’s Role in Healthcare: Beyond Productivity
AI’s potential extends far beyond traditional sectors like manufacturing or finance. The healthcare industry stands to benefit greatly from AI’s ability to analyze vast amounts of medical data quickly and accurately. For example, AI systems can assist doctors by analyzing scan reports, identifying patterns, and recommending treatment protocols. AI can also reduce the burden of administrative tasks, such as summarizing doctors’ notes and processing insurance claims, thereby improving productivity in healthcare settings while also reducing costs.
Generative AI is now widely recognized as a general-purpose technology (GPT), similar to electricity or the personal computer
Such advancements could lead to significant improvements in healthcare delivery, making it more efficient and cost-effective. This would not only improve outcomes for patients but also contribute to economic growth by lowering healthcare costs for both consumers and governments.
The Path Forward
Generative AI is now widely recognized as a general-purpose technology (GPT), similar to electricity or the personal computer. These technologies have historically contributed to broad-based productivity growth across multiple sectors. The key to AI’s success as a GPT lies in its ability to integrate seamlessly with existing technologies and applications across various industries, driving continuous innovation and productivity gains.
The widespread adoption of AI in industries like logistics, manufacturing, education, and even creative arts has the potential to revolutionize how businesses operate and how workers contribute. As businesses continue to integrate AI into their processes, the resulting efficiencies will likely lead to increased competition, lower prices, and higher wages for workers in industries that embrace these changes.
AI’s transformative potential for global productivity cannot be overstated. Just as the steam engine and personal computers reshaped industries and economies, AI is positioned to trigger an unprecedented leap in productivity across nearly every sector. While challenges related to job displacement and economic inequality remain, the promise of a future in which AI drives substantial economic growth is undeniably exciting.
As AI continues to evolve, it is crucial for businesses, policymakers, and workers to embrace this change, adapting to new technologies and fostering an environment that allows AI to reach its full potential. The future of productivity is unfolding before us, and AI will be at the centre of this revolution.
Society
Stand out and succeed: The power of differentiation
The author shares his insights on how embracing uniqueness and differentiation can be a powerful tool for success in business, drawing from examples of leading brands that have redefined their industries.
Have you ever worn socks with dazzling colours and unique designs that stand out from the ordinary? It might sound surprising, even unsettling, to some. Aren’t such socks meant for kids? However, Happy Socks, a Swedish company, thought differently. Their creativity lies in combining unusual colours and extraordinary designs, setting them apart from the rest.
You might wonder, who would buy such socks? The answer might surprise you. Today, Happy Socks’ market spans 90 countries. Delving into their success, we find that the uniqueness of their products is key. While competitors often think conventionally, Happy Socks strives to think differently. Today, their customers take pride and joy in wearing their brand.
Differentiation is a powerful strategy that can quickly capture the market’s attention. Entering a saturated, highly competitive market with products similar to those of competitors gives you slim chances of success. This is where differentiation becomes a winning strategy. Consumers are drawn to products that offer a unique experience.
Embracing your difference is the key to building a competitive advantage
Tesla created a stir in the electric car market with its unique features, capturing the hearts of consumers. It wasn’t just environmental friendliness and technology that drew people in. Tesla’s unparalleled beauty and distinct characteristics charmed consumers, setting it apart from other cars. Features like customization options, solar panels, rapid charging capabilities, and self-driving technology helped Tesla stand out. In a market expecting intense competition, Tesla managed to leave its unique mark through differentiation.
Embracing your difference is the key to building a competitive advantage. Entrepreneurs must evaluate whether they can provide experiences that are truly different from those of their competitors. At this point, price comparisons and competition become irrelevant. Consumers will gladly pay a premium for high-quality, distinctive products.
As the product’s features and qualities become ingrained in the consumer’s mind, they are drawn to the brand, marking the beginning of a long-lasting relationship. Creating this brand awareness should be the ultimate goal of marketing, as it helps establish dominance over competitors.
Once a product concept takes shape, entrepreneurs should focus on making it different. Recognizing that consumers crave unique experiences and high value makes this possible. Differentiation is a weapon against competition, helping you carve out a distinct space in the market.
Society
Meet the Winners of the Infosys Prize 2024
For the first time in its history, the Infosys Prize has focused on recognizing exceptional researchers under the age of 40
The Infosys Science Foundation (ISF) has recently announced the winners of the Infosys Prize 2024, recognizing groundbreaking research across six categories: Economics, Engineering and Computer Science, Humanities and Social Sciences, Life Sciences, Mathematical Sciences, and Physical Sciences. The awards, each comprising a gold medal, citation, and a prize purse of $100,000, were presented at ISF’s office in Bengaluru, India.
For the first time in its history, the Infosys Prize has focused on recognizing exceptional researchers under the age of 40, highlighting the importance of early career achievements in shaping future innovations. The awards were selected by international panel of jurors and were announced by ISF trustees, including Kris Gopalakrishnan, Narayana Murthy, and Mohandas Pai.
The Infosys Prize 2024 Winners:
- Economics: Arun Chandrasekhar (Stanford University) for his pioneering work on social and economic networks in development economics.
- Engineering and Computer Science: Shyam Gollakota (University of Washington) for his innovations in smartphone-based healthcare tools and battery-free computing.
- Humanities and Social Sciences: Mahmood Kooria (University of Edinburgh) for his contributions to the study of maritime Islam and Islamic law in shaping the Indian Ocean world.
- Life Sciences: Siddhesh Kamat (Indian Institute of Science Education and Research, Pune) for his research on bioactive lipids and their role in cellular functions and diseases.
- Mathematical Sciences: Neena Gupta (Indian Statistical Institute, Kolkata) for solving the Zariski Cancellation Problem in algebraic geometry.
- Physical Sciences: Vedika Khemani (Stanford University) for her pathbreaking work on time-crystals and non-equilibrium quantum matter.
The Infosys Prize remains India’s most prestigious award for scientific excellence, with past laureates going on to receive global honours, including the Nobel Prize and the Fields Medal.
Kris Gopalakrishnan, President of ISF, highlighted the importance of recognizing early career researchers, whose work holds immense potential for transformative societal impact.
Society
RFK Jr. at HHS: A health reformer or a risk to public safety?
Robert f. Kennedy jr. And the future of US Health policy: A closer look at the implications of his anti-vaccine stance and food reform efforts
The recent announcement that Robert F. Kennedy (RFK) Jr. has been tapped to head the U.S. Department of Health and Human Services (HHS) under the second term of President Donald Trump has sent shockwaves through the health and scientific communities. Kennedy, a well-known anti-vaccine activist, has long championed controversial views about immunization, leading many to worry about the potential consequences of his appointment for public health in the United States. However, while his positions on vaccines remain contentious, his advocacy for stricter regulations on processed foods, particularly in school nutrition, raises an important debate about the intersection of health, policy, and public welfare.
The Anti-Vaccine Movement: A Dangerous Shift?
Robert F. Kennedy Jr.’s views on vaccines are well-documented and widely criticized by the medical community. He has persistently questioned the safety and efficacy of vaccines, despite overwhelming scientific consensus that vaccines are among the most effective public health tools available to prevent infectious diseases. His stance runs counter to decades of research that have demonstrated the life-saving benefits of vaccines, from eradicating smallpox to virtually eliminating polio and reducing the incidence of diseases like measles, mumps, and rubella.
This would particularly threaten vulnerable populations, such as infants, elderly individuals…
Kennedy’s vocal opposition to vaccine mandates, coupled with his belief that vaccines may cause harm—particularly to children—has placed him at odds with leading medical experts and public health authorities. His appointment as the head of HHS, the agency responsible for overseeing the nation’s public health policy, could have profound consequences. If Kennedy uses this platform to advocate for policies that reduce vaccination rates or diminish the credibility of scientific research supporting vaccines, it could lead to a resurgence of preventable diseases. This would particularly threaten vulnerable populations, such as infants, elderly individuals, and those with compromised immune systems, who rely on herd immunity to stay safe.
In the context of the ongoing global health challenges, including the COVID-19 pandemic, Kennedy’s stance on vaccines poses a potential risk to efforts aimed at preventing future outbreaks. If the U.S. were to experience another pandemic under his leadership, Kennedy’s approach to vaccines could undermine the country’s ability to respond effectively, endangering millions of lives.
A Silver Lining: Food Reform and Child Nutrition
While Kennedy’s anti-vaccine rhetoric remains a cause for concern, his stance on food policy, particularly regarding the food served in schools, offers a more promising avenue for public health reform. Kennedy has been a vocal critic of the processed food industry, particularly its influence on school lunches. He has argued that the widespread consumption of unhealthy, highly processed foods is a key factor driving the obesity and chronic disease epidemics in the United States, particularly among children.
The connection between poor nutrition and health outcomes is well-established. Diets high in processed foods, sugars, and unhealthy fats contribute to a range of health issues, from obesity and diabetes to heart disease and hypertension. The alarming rise in childhood obesity rates has prompted calls for more stringent regulations around the food products served in schools, where many children receive a significant portion of their daily calories. Kennedy’s push for healthier school meals, free from processed foods and filled with nutritious alternatives, is a policy that aligns with the recommendations of many nutrition experts.
Kennedy’s calls for food reform could provide a much-needed counterbalance to the harmful influence of corporate interests in the food industry
While his anti-vaccine views may overshadow his other positions, Kennedy’s stance on food reform is one that could benefit the health of future generations. Improving the quality of food served to schoolchildren would not only help combat rising rates of childhood obesity but could also reduce the long-term burden of chronic diseases, ultimately easing the strain on the nation’s healthcare system.
A Complex Legacy and Uncertain Future
The nomination of Robert F. Kennedy Jr. to head HHS is emblematic of the broader tensions within the Trump administration, which has frequently positioned itself against the scientific establishment. Kennedy’s promotion, alongside other controversial picks, suggests a continuation of the president’s desire to reshape key federal agencies in line with his ideological and political views, often at odds with established science and public health expertise.
However, Kennedy’s anti-establishment persona also resonates with a segment of the American public that feels disconnected from traditional political elites and the institutions that govern public health. His views on vaccines may appeal to those who distrust government-mandated health policies, even if those policies are grounded in extensive scientific research.
At the same time, Kennedy’s calls for food reform could provide a much-needed counterbalance to the harmful influence of corporate interests in the food industry. If he were to focus on improving the nutritional standards of school meals and advocating for greater transparency in food labeling, he could help shift the national conversation toward healthier diets and better public health outcomes.
A Balancing Act for Public Health
As Robert F. Kennedy Jr. takes on the responsibility of leading the U.S. Department of Health and Human Services, the country faces a complex and uncertain future. While his stance on vaccines raises significant concerns, his advocacy for healthier food policies could offer valuable solutions to the growing public health crisis of diet-related diseases. In navigating his dual legacy of promoting vaccine skepticism and championing food reform, Kennedy will need to balance his controversial views with the scientific evidence that underpins public health policy.
The true test of his leadership will be whether he can embrace evidence-based health practices while addressing the pressing challenges of childhood nutrition, chronic disease prevention, and the fight against harmful food industries. If Kennedy can move beyond his anti-vaccine stance and focus on fostering a healthier, more informed public, his tenure at HHS could ultimately benefit the health and well-being of Americans—especially the nation’s children, who will inherit the public health policies of today.
-
Space & Physics5 months ago
Fusion Energy: The quest for unlimited power
-
Society4 months ago
Death toll 280 & counting: what is the science behind Kerala’s deadly landslides?
-
Learning & Teaching5 months ago
Delving into the historical perspective of learning
-
Interviews4 months ago
‘Significant under-representation of black women in academic and research leadership’
-
Earth5 months ago
Ancient Earthquake Redefined Ganges’ Flow Through History
-
Earth5 months ago
The place where seabirds outnumber people
-
Society5 months ago
Reborn; India’s 1600-year-old Ivy League University
-
Earth4 months ago
Rate of global warming caused by humans at an all-time high