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The boom in generative AI will accelerate productivity but disrupt workforce, primarily knowledge workers, says a McKinsey report.
Generative artificial intelligence has the potential to create $2.6 trillion to $4.4 trillion in value across industries, says a report by McKinsey. Banking, high tech, and life sciences are likely to see the biggest impact on revenue.
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Generative AI has the potential to change the anatomy of work, it said. Current technologies, too, can automate work activities that absorb 60-70% of employees’ time.
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While increasing productivity, the boom will pile pressure on the labour force, especially higher-wage knowledge workers.
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Work of higher-wage knowledge workers will be transformed because of advances in technical automation potential of their activities, which were previously considered to be relatively immune from automation.
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McKinsey's earlier report had said that AI will match typical human performance for 'natural-language understanding' in 2027. But, the new report says it will happen this year.
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The transformation will have the biggest impact on some of the most educated workforce. Share of work can be automated more in white-collar industry, than those involved in physical tasks.
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