The AI landscape is one that is constantly changing and adapting, bringing more ways to apply deep learning without the need for extensive human effort and driving the trends of automation and cloud computing further.
One of the key themes in our latest Technology Sector Report is Artificial Intelligence, a tool which has been around for many years, growing from basic automation into branches of Robotic Process Automation (RPA), Business Process Automation (BPA), Narrow AI, Generative AI (GenAI) and General AI.
With reports estimating that AI could add £232 billion to the UK’s economy by 2030, embedding these new technologies across all sectors has the potential to create thousands of jobs and drive economic growth.
It’s no surprise to see businesses already prioritising the application of AI into their operations, with studies showing that those who choose to do so are more likely to reduce costs successfully, increase productivity and enhance quality. Bain research has also suggested that access to AI tools could help companies make 20% of worker tasks more efficient without a loss in quality.
Generative AI (GenAI)
McKinsey view GenAI across three horizons; 1: Productivity, 2: Innovation & 3: Disruption. While many organisations are still in the early stages of fully, or partially, adopting AI components into their workstreams, 75% of participants in a McKinsey survey agreed that GenAI should support business growth.
Implementing GenAI can allow businesses to reduce time to competency with new technology and specialisations, easing the need to hire talent already skilled in these areas.
30% of top innovators are already deploying GenAI at scale in their innovation plans and R&D functions. McKinsey claims in the current climate, new growth pathways are key to remaining economically viable and 78% of respondents in a recent survey claimed they would need to change “moderately to completely” to reach 2025 sustainably.
To highlight this further, global spend on digital transformation technologies and services is expected to reach $2.9 trillion by 2025, with 93% of executives agreeing that emerging tech is helping them build trust with stakeholders.
“With the power of generative AI, you can imagine certain kinds of services – from financial to healthcare – becoming available to more people, at a lower cost. Although companies’ leaders seem to think that this horizon won’t dramatically affect them in the next five years, that may turn out to be wishful thinking.”
Paul Jenkins, Senior Partner at McKinsey
Bridging the gap
There’s a delicate balance to consider between the human and digital relationship, with 44% of respondents in a Gigged.AI survey claiming that they had concerns about the ethical impact of replacing roles previously occupied by humans.
The number of UK businesses facing skills shortages or talent gaps is growing, along with the advancements in technology. Bridging the gap between human and artificial intelligence has never been more in demand. Driving value and innovation, ensuring businesses adapt, will lead to more opportunities for people to develop and benefit from the implementation of AI, rather than facing drawbacks.
One of the ways which AI is bridging this gap is through the speeding up of the drug development pathway. In an interview held by experts at McKinsey, it was said that AI has the potential to develop medicines quicker and improve millions of people’s lives for the better.
With the level of research conducted through machine learning, experts believe scientists will be able to discover things with machine learning that they could never have thought of by themselves, generate entirely new ideas, and move at a pace that will allow one person to do what it would have taken 100 to do before.
For those who remain concerned that the implementation of AI will negatively impact human roles, it is key to understand that, harnessed properly, AI can reshape the way we work – creating opportunities rather than removing them.
More than half of those in a recent PwC survey agreed that they expect to see a positive impact of AI on their career over the next five years, with 31% agreeing that it will increase their productivity and efficiency at work.
As an investment trend, it’s clear to see that these advancements in technology will continue to create more opportunities for businesses, people and society than ever before, therefore driving long-term value for stakeholders. The UK Government has already announced an investment of £100 million to support regulators and advance research & innovation in AI over the coming years, enabling the UK to apply its skills in technology within the fields of healthcare, chemistry and mathematics.
But money from the Government alone is not enough to support this critical component of the UK’s growth strategy – which is where we come in.
With ambition to create a central hub of excellence within the UK for AI, we play an important role in unlocking capability and growth – backing businesses and founders to help them scale.
Process Automation
There’s also an increasing demand for businesses to streamline operations and innovate through Business Process Automation (BPA). Business goals of reducing costs, improving efficiencies and remaining agile lends themselves well to the benefits process automation offers. AI and other forms of ‘smart automation’ have the potential to boost productivity and create new and better services and products.
According to a report from PwC, the benefits of BPA to businesses across multiple sectors will come in varying waves of automation: the algorithm wave; the augmentation wave; and the autonomy wave. PwC analysis suggests that the share of jobs impacted by automation is estimated to rise to 30% by the mid-2030s, as many more manual tasks become automated.
“AI technology is getting more sophisticated every day and businesses need to understand how, where and when their people are likely to be affected in the future. Those that understand the risks and opportunities can start upskilling their people and adapting their businesses, rather than simply reacting when it’s too late.”
Euan Cameron, UK AI Leader at PwC
Businesses will need to think flexibly about how to shape their operating models as the technology landscape develops, focusing on where they can undergo transformative changes and utilise process automation to help meet demand and support sustainable growth.
By taking a look at operating models to ensure businesses are equipped against the digital threats and specialist knowledge needed to implement advanced technologies, businesses will be able to focus on where they can undergo transformative changes and utilise process automation to help support their growth and meet demand.
The need for automation in businesses and processes presents an exciting opportunity from an investment perspective. Businesses which take the steps now towards digital transformation, as well as those who enable digital transformation, will be well placed to drive long-term growth, as well as being primed for the demand of hyperautomation – a combination of AI, machine learning and robotic process automation. This sector is expected to grow to the value of $860 billion by 2025, presenting opportunities to deliver significant growth for those getting ahead of the competition.
Read our full Technology Sector Report for further key trends, portfolio case studies and insights from experts across the Technology sector.