Productivity growth across the world is in decline. However, the boom in Generative AI heralds a potential revolution in productivity – in areas such as customer operations, marketing and sales, and software engineering. How should EM investors respond?
Fast reading
- Productivity growth in advanced economies has declined to less than 1% in the aftermath of the 2008-09 financial crisis. In recent years, productivity growth in emerging economies has also been falling.
- Advancements in microchip technology, a rollout of cloud computing capabilities, and an increased awareness about the importance of data have the potential to greatly increase productivity – as long as enterprises embrace this change.
- GenAI enables machines to interact with people on an unprecedented level, helping to potentially address a multitude of tasks with speed and precision. GenAI has the potential to add US$2.6tn to US$4.4tn in value annually, according to McKinsey.
Rapid developments in digitisation have the potential to greatly increase productivity – as long as enterprises adapt and embrace this change.
The last few years have seen advancements in microchip technology, a rollout of cloud computing capabilities, and an increased awareness about the importance of data. We now stand on the cusp of a potential revolution in Generative AI (GenAI).
You can now read the full whitepaper at the link below
