Recent news around the global and Australian economy hasn’t exactly been all sunshine and smiles, with the pandemic’s impact still causing the world to wobble. But there is some good news – both for jobs and the economy. And that is that AI and automation are already driving growth! Let’s take a look.
What do the numbers say?
The report we’re focussing on here is the first study of its kind into the economic impact of smart automation, called “Automation: Past, Present, and Future – A Driving Force for Economic Growth” from SnapLogic and the Centre for Economics and Business Research.
So, here’s what they found that investments in automation are directly linked to:
- Increased business revenues by 5-7%
- Increased job growth of 4-7%
- Increased long-term productivity by 15%
With regards to the USA and UK:
- AI and automation-focussed organisations in the USA saw a 7% increase in employment within 3 months – that’s 7.2 million jobs
- Similar organisations in the UK saw an average increase in employment of 4% in the same 3-month period – 676,000 jobs
- The average increase in long-term productivity is forecasted at 15% in the UK, creating a potential for another 3.3 million jobs
- With the same 15% forecasted for the USA, it is set to potentially create another 16 million jobs
Other findings conclude that investing in automation:
- On a country-wide level improves resilience to economic turmoil and shortens recovery time (for example, from the impact of the pandemic)
- If the UK was on similar levels of AI automation adoption to the USA at the time of the pandemic, £10-14 billion in economic contraction would have been prevented
- If the USA was on similar levels of AI automation adoption to Singapore, they would have seen a reduction of economic contraction by US$105-212 billion
Where is this tech investment being focussed?
AI automation is a technology that can be applied in a vast number of ways across all industries, from medical and financial sectors to transportation, farming, and government services. So, where does this report show organisations are focussing their automation investment?
- Cloud solutions – 78% of USA and 64% of UK companies
- Data gathering and integration – 71% of USA companies and 44% of UK companies
- IoT (Internet of things) – 64% of USA organisations and 40% in the UK
- Data analysis and insights – 62% of USA organisations and 41% in the UK
What are their expectations?
Any investment, especially projects of this scope, is designed with key goals and KPIs in mind to track ROI. So, what do these organisations want to achieve with their AI automation investments?
- Greater agility and speed – 50% or more organisations in the USA and UK
- Improved employee productivity and performance – 47% of USA organisations and 35% of organisations in the UK
- Reduced costs and wastage – 38% of USA companies and 37% of UK organisations
- Effective customer service and engagement – 39% of organisations in the USA and 37% of UK organisations
What should we be taking from this?
Although this is the first study to look at the economic impact of smart automation in businesses, it closely aligns with findings from other studies. For example, PWC has reported that smart automation and AI are set to account for 50% of the US$15.7 trillion worth of global economic growth by 2030 while the World Economic Forum forecasts that the adoption of these technologies will add over 12 million jobs globally by 2025.
What this study shows is that it is happening faster than anticipated – which is a good thing, especially if you are tired out and stressed out from the cost of living crisis and the impact of the pandemic on your business.
But AI automation needs a robust implementation and investment strategy to really deliver these results. With hundreds of solutions out there and your completely unique workflows, processes, and business needs, there’s no off-the-shelf option that will make you a part of this boom.
That’s where we come in!
As a small business ourselves, Otto is a Melbourne-based IT services provider that understands what you’re up against – from inflation and supply chain turmoil to geopolitical influences and skills shortages. But we’re not here to push yet another pricey, underperforming product onto your budget.
Instead, we’ll show you how AI supports the stability, profitability, and productivity of your business – and we’ll develop a custom solution that works for you the way you want it to.