Artificial Intelligence (AI) Is Exploding The widespread adoption of AI across industries is to drive global revenues of $12.5 billion in 2017 and $47 billion in 2020 with a CAGR of 55.1% from 2016 to 2020.
The industries that will invest the most in these technologies are banking and retail, followed by healthcare and manufacturing. Economists designate general purpose technologies (GPT) as those important enough to spur protracted economic growth and societal advancements. For example, electricity is a GPT. A recent designates AI as the most important GPT of our era.
PayPal has been able to boost security by leveraging deep learning technology. PayPal’s fraud is relatively low at , a figure far better than the 1.32% average that merchants see. While a linear model can consume , deep-learning technology can command thousands of data points.
For years, investment management companies have relied on computers to make trades. Around , managing $197 billion, rely on large statistical models built by data scientists. However, these models are , require human intervention, and don’t perform as well when the market changes. Therefore, funds are increasingly that analyze large volumes of data continue to improve themselves. In 2000, Goldman Sachs’ US cash equities trading desk in its New York headquarters 600 traders. Today, it has two equity traders, with machines doing the rest. For investors, robo-advice can offer up to 70% in cost savings in certain services. Some established investment firms are buying existing robo-advisors, such as and . Others are even creating their own robo-advisors, such as FidelityGo and Schwab’s Intelligent Advisory. 77% of wealth management clients trust their financial advisors and 81% indicate that face-to-face interaction is important.
General purpose technology
General purpose technology is a term economists reserve for technologies that spur protracted economic growth and societal advancements, revolutionizing the operations of households and corporations alike. A sample general purpose technology is electricity. Electricity spawned a multitude of products and sectors, including refrigerators, washing machines, trains and, of course, computers. The advent of electricity radically transformed the world.
A recent Harvard Business Review article designates artificial intelligence (AI) as the most important general purpose technology of our era. We’re familiar with the power of AI. It manifests in the form of a robot defeating a world-renowned chess player. A car that can parallel park itself. Devices that respond with tomorrow’s weather when we ask. But much of our contact with—and understanding of—AI revolves around products that affect our everyday lives as consumers. At the organizational level, there’s a larger question around how AI will disrupt industries, and specifically, how financial services will harness AI. […]