Cha-ching! The economic potential of generative AI

Generative artificial intelligence (AI) has been making headlines worldwide. By now, you have probably heard of or have an idea about what this technology is and what it does. Generative AI is a subset of artificial intelligence that can be used to produce various outputs, like image, text, audio, and other forms of data. The output depends on the intended purpose of the AI model, which can be tweaked to suit the needs of individuals and organizations based on several parameters. Cha-ching! The economic potential of generative AI.

Adopting generative AI in organizations can achieve significant economic strides in terms of growth. A recent report by McKinsey & Company has investigated the economic potential of using this technology across various domains, like marketing and sales, legal, supply chain, research and development, and customer operations, among many other business functions across multiple industries, such as the life sciences sector. In this article, we will go over several of the report findings to better understand how this technology accelerates the potential of organizations and individuals alike.

Monetary returns

According to the McKinsey & Company report, the impact of generative AI on productivity could result in gains of up to $4.4 trillion per year. To put that in perspective, this is about 1/5 of the United States gross domestic product (GDP) during the year 2022, based on numbers from the World Bank. Furthermore, according to the same source, this is more than the United Kingdom’s GDP of $3.07 trillion over the same period. GDP is a standardized monetary tool that measures the market’s value based on the final goods and services produced in a country over a determined time period.

The report indicated that these estimates are based on 16 business functions with 63 use cases that have been evaluated. The aforementioned figure could even double if the potential of generative AI is embedded in software utilized by industries other than those that have been assessed.

Sectors with the most notable impact

Generative AI will significantly impact most sectors. According to the report, the banking, technology, and life sciences industries will see the highest impact in terms of revenue generated by adopting and using this technology. The report mentions that, for example, the banking industry could see an additional $200 to $340 billion per year when generative AI is fully implemented. Another example highlighted by the report is the retail sector, where the financial return could be as high as $660 billion per year.

In pharma and medical products, the total potential gains from the use of generative AI could be as high as $110 billion. The main areas where the revenue increases occur in the life sciences industry include research and drug discovery, content and document generation, and contract creation.  

Impact on employees

Generative AI has the potential to augment the capacities of the workforce. In this context, the McKinsey & Company report indicated that generative AI can achieve this feat by automating tasks that consume 60% to 70% of the employees’ workday. This in turn gives them the space and time needed to attend more critical tasks. This percentage is higher than the company’s previous report, which indicated that generative AI could automate tasks that consume half of the time employees spend performing their jobs.

The report attributed this improvement to the enhanced capacity of generative AI in understanding natural language, which is needed to perform work-related activities that consume 25% of the employee’s total work time. This shows how such a technology could make time to perform more critical actions, which could lead to not only improved productivity, but also an increase in revenue.

How can Narrativa help?

Narrativa is a company specializing in generative AI and related technologies. It hosts its own platform to help you automate content creation, analyze large datasets, change content tone, translate text, create reports, and much more!

Narrativa has experience across multiple industries, like life sciences, finance, marketing, entertainment, and many others. We have partnered with leading companies in these areas, like the Leukemia & Lymphoma Society (LLS), Microsoft, and the Wall Street Journal.

Examples of how our generative AI and related solutions can support the life sciences industry include the automatic creation of patient safety narratives, Tables, Listings, and Figures (TLFs) automation, and clinical study reports (CSRs), among other mature and developing solutions. Regarding the finance industry, our solutions support this domain by providing tools that analyze large datasets, extract insights, generate reports, and provide real-time market insights, plus more! 

For the marketing industry, our platform can help you create content, automate product description creation, craft advertising messages, and generate customer communication to improve engagement, retention, and revenue. For the entertainment industry, our generative AI technology could help your company by creating customized content with a click, producing multiple headlines, calls-to-action, real-time commentaries, summaries, and valuable statistics.

About Narrativa

Narrativa is an internationally recognized generative AI content company that believes people and artificial intelligence are better together. Through its proprietary content automation platform, teams of all types and sizes are empowered to build and deploy smart composition, business intelligence reporting, and process optimization content solutions for internal and external audiences alike. 

Its tech stack, consisting of data extraction, data analysis, natural language processing (NLP), and natural language generation (NLG) tools, all seamlessly work together to produce content quickly and at scale. In this way, Narrativa supports the growth of businesses across a variety of industries, while also saving them both time and money. Accelerate the potential with Narrativa.

Contact us to learn more about our solutions!