Generative AI holds tremendous potential to transform work across industries and boost overall productivity.
In fact, Citi research analysts take the view that Generative AI can not only bring the power of AI itself to the masses but accelerate the very democratization of innovation.
As such, it’s a game changer, they say.
ChatGPT has become the fastest growing consumer application in history (Time to reach 100 million users worldwide)
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Source: Citi Research, SimilarWeb, OpenAI
Generative AI potentially represents the latest inflection point in the evolution of AI
© 2023 Citigroup Inc. No redistribution without Citigroup’s written permission
Source: Citi Research, IDC
Its impact will be far reaching, the report says.
Generative AI Technology Value Stack
© 2023 Citigroup Inc. No redistribution without Citigroup’s written permission.
Source: Citi Research
Artificial intelligence (AI) describes algorithms (such as ChatGPT) that can be used to create new content, including audio, code, images, text, simulations, and videos. It builds on exponential increases in the size and capabilities of deep learning models, made possible thanks to high-performance computing (HPC) power and richer datasets. Further, we see Google’s innovations in Transformers and diffusion models now serve as the foundational basis for LLMs and Generative AI.
According to a recent Accenture analysis based on US jobs data, nearly 40% of working hours across industries can be impacted by Large Language Models (LLMs). Based on the same analysis, Accenture also notes that in 5 out of 22 occupation groups, Generative AI can affect more than half of all hours worked.
Generative AI will transform work across industries
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Source: Citi Research, Accenture
The redeployment of worker time (gained via automation and/or augmentation using Generative AI) into other activities could meaningfully boost overall productivity for years to come.
According to a recent McKinsey analysis, Generative AI could add labour productivity growth of 0.1 to 0.6 percent annually through 2040. That’s trillions of additional dollars to the global economy
The report points out that consumers have not only enthusiastically embraced Generative AI, but also have high trust-levels for Generative AI-based interactions - recent studies also support this view.
For more information on this subject, and if you are a Velocity subscriber, please see the full report, first published on July 10th here Global Equity - AI Unleashed: Generative AI Impact and Citi’s GAIN Baskets.
And for more on AI please see these recent items and more besides on the ICG website
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How AI is Turbocharging Sports Tech
AI Time: Artificial Intelligence is Driving Progress in Autonomous Vehicles
Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.