Generative AI, in particular, has been making waves with its ability to perform a range of routine tasks, from data reorganization to text writing and digital art creation. This technology has the potential to transform various industries, from banking to life sciences, and could add trillions of dollars to the global economy.

The impact of generative AI on productivity could be significant, with estimates suggesting it could add $2.6 trillion to $4.4 trillion annually across various use cases. This would increase the impact of all artificial intelligence by 15 to 40 percent. About 75 percent of the value that generative AI use cases could deliver falls across four areas: customer operations, marketing and sales, software engineering and R&D. The technology is likely to have a significant impact across all industry sectors, with banking, high tech and life sciences being among the industries that could see the biggest impact as a percentage of their revenues.

Generative AI has the potential to change the anatomy of work, augmenting the capabilities of individual workers by automating some of their individual activities. Current generative AI and other technologies have the potential to automate work activities that absorb 60 to 70 percent of employees' time today. The pace of workforce transformation is likely to accelerate, given increases in the potential for technical automation. Generative AI can substantially increase labor productivity across the economy, but that will require investments to support workers as they shift work activities or change jobs.

The era of generative AI is just beginning, and while excitement over this technology is palpable, early pilots are compelling. However, a full realization of the technology's benefits will take time, and leaders in business and society still have considerable challenges to address. These include managing the risks inherent in generative AI, determining what new skills and capabilities the workforce will need and rethinking core business processes such as retraining and developing new skills.

As companies rush to adapt and implement generative AI, understanding the technology's potential to deliver value to the economy and society at large will help shape critical decisions. The technology has the potential to deliver significant value across industries, with the retail industry, for example, potentially contributing roughly $310 billion in additional value by boosting performance in functions such as marketing and customer interactions. The banking industry could also see significant efficiencies, with generative AI taking on lower-value tasks in risk management, such as required reporting, monitoring regulatory developments and collecting data.

In the life sciences industry, generative AI is poised to make significant contributions to drug discovery and development. The technology has the potential to revolutionize internal knowledge management systems, empowering teams to quickly access relevant information and make better-informed decisions. It can also drive value by working in partnership with workers, augmenting their work in ways that accelerate their productivity. Its ability to rapidly digest mountains of data and draw conclusions from it enables the technology to offer insights and options that can dramatically enhance knowledge work. This can significantly speed up the process of developing a product and allow employees to devote more time to higher-impact tasks.