Organizations that successfully apply artificial intelligence could increase profitability by an average of 38 percent by 2035, according to a new report from professional services firm Accenture.

The report identifies eight key strategies for successfully implementing AI that focus on adopting a human-centric approach and taking bold and responsible steps to applying the technology within businesses and organizations.

“Artificial intelligence will revolutionize how businesses compete and grow, representing an entirely new factor of production that can ignite corporate profitability,” said Paul Daugherty, chief technology and innovation officer at Accenture who authored the report.

“To realize this significant opportunity, it’s critical that businesses act now to develop strategies around AI that put people at the center, and commit to develop responsible AI systems that are aligned to moral and ethical values that will drive positive outcomes and empower people to do what they do best: imagine, create and innovate,” Daugherty said.

The report, developed by Accenture Research in collaboration with Frontier Economics, finds that AI has the potential to increase economic growth rates by a weighted average of 1.7 percentage points. Of the industries studied, information and communication, manufacturing and financial services are the three sectors that will see the highest annual gross value added (GVA) growth rates in an AI scenario, with 4.8 percent, 4.4 percent and 4.3 percent respectively by 2035.

This translates to an additional $6 trillion in GVA in 2035 for these three sectors alone. Even labor-intensive sectors such as education and social services—where productivity growth is traditionally slow—will see a significant increase of $109 billion and $216 billion in GVA respectively.

The research shows that AI offers unprecedented opportunities. In labor-intensive sectors, such as wholesale and retail. AI augments the human workforce, enabling people to become more productive, leading to a profit increase of almost 60 percent.

In capital-intensive industries such as manufacturing, AI powered machines will eliminate faulty machines and idle equipment, delivering constantly rising rates of return, resulting in profit increases of 39 percent by 2035, the report said.

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Bob Violino

Bob Violino

Bob Violino is a freelance technology and business writer who covers a variety of topics, including big data and analytics, cloud computing, information security and mobile technology.