American Century Investments® Portfolio Managers D.J Cross and Scott Marolf weigh in on the potential impact of artificial intelligence (AI) on various sectors and the US economy as a whole.
While robotics technology has been advancing manufacturing tasks for decades, artificial intelligence catapulted back into the spotlight with the release of ChatGPT, a generative AI large language model. Chat GPT is enormously popular, reaching 100 million users in two months, an adoption rate that took Facebook 4.5 years to reach. ChatGPT is not yet capable of independent work, as users must both prompt and fact check the technology in its current state.
AI technology has the ability to assist workers with time consuming and repetitive tasks, freeing them to focus on higher productivity activities. Today, AI is already assisting lawyers in legal research, pharmacists in reducing prescription errors, as well as with the credit analysis of individual borrowers. Over 80% of US businesses already deploy AI, which may lead to the largest productivity gains in the last quarter century. This increase in productivity may potentially enhance economic growth and reduce inflationary pressures. Estimates are that the US gross domestic product (GDP)* growth rate could double as the gains from AI are increasingly integrated into the economy.
The technology, however, is not without its risks, as there are regulatory concerns regarding the need to limit potential abuses. Workers are concerned about AI displacing jobs, potentially replacing one-third of retail workers in the next ten years. New jobs will be created, many of which haven’t yet been planned or understood. Industries with the fastest AI job growth include IT, professional services, and finance. Ideally, productivity gains from AI can offset the retirement of aging workers in the US and other developed economies.
For more insights:
Exploring The Transformative Potential Of AI
Exploring AI’s Economic Impact
WEBCAST: Exploring AI’s Transformative Potential – ON DEMAND SOON
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments’ portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.
©2023 American Century Proprietary Holdings, Inc. All rights reserved.