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Alan Kennedy
2024-10-30 13:30:00
www.visualcapitalist.com
Visualized: The Impact of Generative AI on Revenue
Many large tech companies have touted artificial intelligence (AI) as the next big thing to evolve modern businesses. Much has been made of its ability to parse data and create incredible outputs from meager inputs.
But is AI improving businesses where it matters most—their bottom lines?
For this graphic, the first in the three-part Catalysts of Connectivity series, Visual Capitalist partnered with Global X ETFs to explore the economic impact of AI adoption.
Can AI Supercharge Modern Businesses?
AI’s potential to improve today’s businesses is incredible. Many studies believe AI’s economic impact is in the trillions. One study conducted by McKinsey & Company even went as far as to say generative AI alone could add $4.4 trillion to the global economy every year.
While these numbers may seem abstract in their vastness, they are not without foundation. Many companies are now using AI in their daily operations, and the benefits are beginning to show.
One study, in particular, showed that 44% of the companies surveyed reported some form of revenue growth due to AI. However, looking across industries, some report much more revenue growth than others.
Below is a list of industries, along with the percentage of respondents who reported certain percentages of revenue growth:
| Function | ≤5% | 6–10% | 6–10% | Total |
|---|---|---|---|---|
| Marketing and Sales | 34% | 12% | 12% | 53% |
| Risk, Legal, and Compliance | 46% | 13% | 13% | 62% |
| Human Resources | 21% | 6% | 6% | 33% |
| Product Development | 23% | 8% | 8% | 35% |
| Supply Chain | 30% | 18% | 18% | 53% |
| Service Operations | 29% | 13% | 13% | 45% |
| IT | 42% | 10% | 10% | 56% |
| Software Engineering | 30% | 9% | 9% | 46% |
| Average Across All Functions | 32% | 11% | 11% | 48% |
The Role of Data Centers in AI Adoption
Data centers are critical in the AI ecosystem. When you complete an AI request, the AI completes the work within a data center.
However, training an AI requires an incredible amount of data, often ten times the size of its parameters, meaning many models have trillions of parameters. To prepare for this, data centers increased their computational power six-fold between 2019 and 2022.
The Potential of AI
AI has the incredible potential to revolutionize many industries, contributing trillions of dollars to the global economy and driving the growth of other sectors, such as data centers.
Are you interested in learning more about the potential of AI and data centers?
In the second part of Catalysts of Connectivity, we explore the amount of data created online and how data centers store this information.
Click here to learn more about the Global X Artificial Intelligence & Technology ETF.
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The post Visualized: The Impact of AI on Revenue appeared first on Visual Capitalist.
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