Unleashing the Power of Generative AI: ChatGPT, Bard may add value worth India's economy annually

A survey conducted in February found that nearly half of US companies currently using ChatGPT said the chatbot has already replaced workers.

Global consulting firm McKinsey has anticipated that generative artificial intelligence (AI) is likely to add trillions of dollars in value to the global economy. Generative AI technologies, such as OpenAI's ChatGPT, Anthropic’s Claude, and Google's Bard, are poised to inject an astounding $2.6 trillion to $4.4 trillion annually across 63 distinct use cases, for context, the size of India's booming economy is $3.5 trillion.

The report noted that about 75 percent of this value creation is expected to occur in four key areas: customer operations, marketing and sales, software engineering, and research and development (R&D).

Industries such as banking, high tech, and life sciences are set to experience a significant impact as a percentage of their revenues. For example, within the banking sector alone, generative AI could unlock an additional $200 billion to $340 billion annually if the use cases were fully implemented.

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Similarly, retail and consumer packaged goods sectors have the potential to reap immense benefits, with a potential impact ranging from $400 billion to $660 billion each year.

The study further reveals that current generative AI technology, along with other advancements, has the power to automate approximately 60 to 70 percent of employees' time-consuming work activities.

This finding challenges previous estimates, which suggested automation could only replace half of employees' workload.

The updated adoption scenarios, taking into account technology development, economic feasibility, and diffusion timelines, now project that approximately half of today's work activities could be automated between 2030 and 2060, with a midpoint estimate of 2045—a decade earlier than previously predicted.

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The report also highlighted the fact that the generative AI could enable labour productivity growth of 0.1 to 0.6 percent annually through 2040, depending on the rate of technology adoption and redeployment of worker time into other activities.

The push in generative AI gained substantial momentum following the groundbreaking launch of OpenAI's application in 2019.