Defined as the modeling of human mental functions through computer programsArtificial Intelligence was chosen for becoming the dominant conversation of 2023. This recognition emphasizes the significant impact that AI has gained on society, the economy and the job market.
The word of the year is selected annually by lexicographers from a list of new terms that reflect a constantly evolving language. They monitor a variety of sources, including social media. Last year, the term chosen was permacrisewhile NFT was the word of 2021.
As Artificial Intelligence gains prominence as the word of the year, American President Joe Biden signed a new executive order on October 30, giving the federal government the authority to place barriers to the use and development of AI. The document is based on voluntary commitments made by 15 industry leaders, such as OpenAI, Meta, Amazon e Alphabet.
If AI fulfills its potential, it could be as transformative as the personal computer has been over the past five decades, boosting productivity, stimulating innovation and generating new business models.
According to recent EY research, 91% of organizations are using AI primarily to optimize operations, develop self-service tools such as chatbots, or automate processes. So far, most companies are thinking mostly incrementally:
How can GenAI make existing processes more efficient?
However, trends indicate that companies are already starting to think about how AI can transform functions and business models from an early stage in the process.
One of the most notable aspects of AI is its potential to transform the job market. A study conducted by the McKinsey Global Institute predicts that it could boost economic growth by up to US$13 trillion by 2030. This research highlights the role of AI in automating routine tasks and improving operational efficiency.
Additionally, AI is creating new job opportunities in related fields such as data science. A report by the World Economic Forum predicts that AI could create 97 million new jobs by 2025, while 85 million jobs could be replaced by automation. This suggests that although AI is causing changes in the job market, it is also generating opportunities for qualified professionals.
However, it is important to note that the implementation of AI in the job market is not without its challenges. The research also highlights concerns about the impact of AI on income inequality and training workers to adapt to new market demands. Public policies and business strategies play a crucial role in mitigating these challenges.
To prepare for the age of AI, companies and governments must take a strategic approach and consider how new technology can comprehensively transform their businesses and economies. It is essential to invest in recycling and skills training programs for the changes that the tool will bring to the job market.
* This text does not necessarily reflect the opinion of Adnews
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