Business which are most likely to use AI are seeing growth in productivity that is almost five times faster than elsewhere.
AI-Powered Sectors Drive Productivity Surge, PwC Reports
In a recent report, accountancy firm PwC revealed that industries leveraging artificial intelligence (AI) are experiencing a remarkable surge in productivity, with growth nearly five times faster than other sectors. This development has sparked optimism for a broader economic uplift.
According to PwC, productivity in professional and financial services, along with the IT sector, saw a substantial increase of 4.3% between 2018 and 2022. In contrast, traditional sectors such as construction, manufacturing, retail, food, and transport only registered a modest growth of 0.9%.
The data underscores the transformative potential of AI in breaking the cycle of low productivity growth, which could, in turn, bolster economic expansion, elevate wages, and improve living standards. These findings were detailed in a report published on Tuesday.
Carol Stubbings, leader of PwC Global Markets and Tax & Legal Services, highlighted that sectors with higher productivity also showed a greater demand for AI skills. This trend suggests that AI integration is a significant factor behind the enhanced productivity in these areas.
Stubbings noted that the productivity gains driven by AI are expected to accelerate as more companies adopt generative AI technologies. These tools, which can be utilized by individuals without specialized AI knowledge, are poised to revolutionize various industries. “The challenge with AI, and particularly generative AI, is the speed of the change,” she added.
This sentiment was echoed by Kristalina Georgieva, head of the International Monetary Fund, who recently commented that AI is impacting the global labor market “like a tsunami.” She projected that AI could affect 60% of jobs in advanced economies within the next two years.
The PwC report, which analyzed over half a billion job advertisements from 15 wealthy nations using data from the Organisation for Economic Co-operation and Development, revealed that roles requiring AI skills command a significant salary premium. In the US, these jobs offer an average premium of 25%, while in Britain, the figure stands at 14%.
As AI continues to reshape the workforce and drive productivity, its broader economic implications remain a critical area of focus for policymakers and business leaders alike.