In its latest report, HSBC examined the complex effects of artificial intelligence (AI) on the economy, highlighting the promising developments as well as the possible disadvantages and challenges that may arise.
The report offers a nuanced perspective, analyzing the positives, negatives and problematic aspects of artificial intelligence to help investors understand the emergence of this impactful technology.
Positive aspects
In the “positive” section of the document, HSBC highlighted the capacity of AI to significantly increase productivity across a range of sectors. For example, generative AI has been recognized as a key contributor to this increase in productivity.
The report states that AI can increase overall efficiency, with a projected increase of 0.1-1.0% annually.
“If achieved, this would provide a significant boost to equity markets. However, previous examples of similar technological advances suggest that this boost may be harder to achieve than many expect.”
One of the important sectors where artificial intelligence is used to improve processes, minimize waste and develop new products is design and production. For example, the Mercedes F1 team used AI to create a rear suspension component in just 48 hours, a process that usually requires six weeks.
The banking and financial services industry is another sector that can greatly benefit from artificial intelligence, which enables faster analysis of data, better decision-making and improved customer service.
HSBC also highlights widespread advantages in other sectors, such as pharmaceuticals, where AI aids drug research and clinical trials, and hospitality, where this new technology improves customer experiences through virtual assistants and predictive management of supplies.