TECHNOLOGY IMPACT ON ECONOMY AND SOCIETY

Size: px

Start display at page:

Download "TECHNOLOGY IMPACT ON ECONOMY AND SOCIETY"

Paul Johnston
5 years ago
Views:

1 TECHNOLOGY IMPACT ON ECONOMY AND SOCIETY ACCENTURE AT VERONA FORUM VARTAN DILANIAN, COUNTRY MANAGING DIRECTOR, ACCENTURE RUSSIA 26 OCTOBER 2018

>> Cumulative capability >> THE COMBINATORIAL EFFECTS OF TECHNOLOGY ARE ACCELERATING CHANGE More advanced and cheaper technologies is a key characteristic of the digital revolution.

2 >> Cumulative capability >> THE COMBINATORIAL EFFECTS OF TECHNOLOGY ARE ACCELERATING CHANGE More advanced and cheaper technologies is a key characteristic of the digital revolution. It is playing a major role in accelerating innovation. Examples of falling cost of key technologies 6 8 Quantum Computing 7 Artificial Intelligence IoT and Smart Machines 5 Big Data, Analytics, Visualization 4 Web 2.0, Cloud, Mobile 2 3 Web 1.0 ecommerce Client-Server and PCs? 1 Mainframe Quantum Computing Source: World Economic Forum / Accenture analysis

3 DIGITAL AND CYBERPHYSICAL TECHNOLOGIES ARE TRANSFORMING THE INDUSTRIES Artificial intelligence Autonomous vehicles Big data analytics and cloud Custom manufacturing and 3D printing Internet of Things (IoT) and connected devices Robots and drones Social media and platforms

65% of children will work in a job that does not yet

4 WHAT IS THE IMPACT? CONSUMER INDUSTRIES WILL CHANGE MORE IN THE NEXT 10 YEARS THAN THEY HAVE IN THE LAST 40. JOB ROLES WILL BE REDEFINED. 65% of children will work in a job that does not yet exist, illustrating the need for an adaptive workforce and continuous learning Source: World Economic Forum / Accenture analysis, OECD

cumulative impact (over 2016-2025) of 130+ initiatives across the industries.

5 HOW CAN THIS DIGITAL REVOLUTION BENEFIT THE ECONOMY AND SOCIETY? $100 trillion at stake of cumulative value for Industry and Society to 2025 can be unlocked across all industries through Digital Transformation Initiatives (The estimation is based on assessment of cumulative impact (over ) of 130+ initiatives across the industries. Societal value incudes impact on customers, society and the environment) Societal Industry THE POTENTIAL IMPACT OF DIGITAL INITIATIVES BY INDUSTRY Consumer Automotive Logistics Electricity Telecom Aviation, Travel & Tourism Oil & Gas Cumulative Value to Society and Industry ($ billion) Jobs (000s) NA Media NA Mining & Metals Chemistry & Advanced Materials Source: World Economic Forum / Accenture analysis To find more about the DTI project, visit

6 POTENTIAL OF ARTIFICIAL INTELLIGENCE FOR ECONOMY AND HUMANS NEW JOBS DRIVEN BY AI 15 new specialized jobs introduced by Robotic process automation and Artificial intelligence REPLACEMENT OF JOBS BY AI 9.1M loss of jobs in US due to automation by 2025 RESKILLING AND RETRAINING 43% increase in FTEs able to focus on customer outcomes IMPACT OF AI ON GDP GROWTH BY 2035 Annual GDP growth rates in 2035 in baseline growth scenario comparing to AI scenario where artificial intelligence has been absorbed into the economy Average 50+% Baseline AI steady rate US Finland UK Sweden Netherlands Germany Austria France Japan Belgium Spain Italy 1.0 LABOR PRODUCTIVITY INCREASE WITH AI % increase in % +27% +36% +25% +35% +20% +34% +17% +30% +12% +29% +11% Source: Accenture Institute for High Performance and Frontier Economics

Artificial Intelligence can double economic growth rates and boost productivity by 40%.

7 WHAT SHOULD ORGANIZATIONS DO NOW? MAKE DATA PART OF YOUR DNA RESKILL YOUR WORKFORCE CAPTURE VALUE THROUGH ECOSYSTEMS Technologies such as Artificial Intelligence can double economic growth rates and boost productivity by 40%. With retraining being 63% more cost effective than recruiting, incumbents should develop new critical capabilities from within. $10T Potential economic opportunity from increased collaboration between large and small companies 7

8 THANK YOU 8

THE 12 COUNTRIES IN OUR SAMPLE

THE 12 COUNTRIES IN OUR SAMPLE We modeled the economic impact of artificial intelligence (AI) in 12 developed countries that currently make up 50 percent of global gross domestic product (GDP). Austria