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Manufacturing Technology Insights | Thursday, January 31, 2019
In the world of technology, businesses are benefitting more than ever. AI redefines industries by providing users with more personalization, automating processes, and disrupting the businesses' functioning. The adoption of AI and the speed of its use vary depending on the industry.
According to McKinsey Global Institute Research estimates, AI could generate a value of between $3.5 trillion and $5.8 trillion in nine business functions in 19 industries per year. AI will also generate an additional marketing value of $2.6 trillion, $200 trillion in pricing, and $100 trillion in the promotion.
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This represents about 40 percent of the total annual impact of $9.5 trillion to $15.4 trillion, which could potentially be made possible by all analytical techniques. The McKinsey study also shows that 69 percent of the time AI and deep neural networks have been able to improve performance beyond the existing analytical techniques.
Machine learning is generally used while implementing AI while it addresses real-world problems. It passes through neural networks to imitate human decision-making abilities. The two key narrow subsets, ML tools and techniques, focus only more on deep learning. Deep learning is the most recent term in ML. This is a way to execute ML.
In each industry, the potential value of AI is estimated to be between one and nine percent of 2016 revenue. Even the industry with the lowest potential value at stake, aerospace, and defence could create an annual value equal to Lebanon’s GDP.
The highest monetary impact is estimated at $0.4-$0.8 trillion in retail. The most important value opportunities for AI in business areas are marketing, sales and supply chain management, and manufacturing.
AI technology is used by companies to reduce operating costs, increase efficiency, increase revenues, and improve customer experience. The development and utilization of AI are accelerating, and AI is likely to become much more prevalent in many industries in the coming years. In 2035, AI is also expected to increase most profitability in education, housing, food services, and construction industries. The profit gain will be enormous in the upcoming years with the adoption of AI in the industries.
Check Out: The Manufacturing Outlook
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