#122- Generative AI- Future of Industry and Functions

Sidhartha Sharma- Personal Views

Generative AI is not just reshaping the business landscape; it’s redefining it. Here’s how this groundbreaking technology is manifesting across different sectors:

  1. Revolutionizing Healthcare: Synthesizing personalized medicines and predicting treatment effects. Generating synthetic data for privacy-compliant research.
  2. Redesigning Automotive Efficiency- Simulating car model designs for improved aerodynamics and aesthetics. Enhancing supply chain and manufacturing processes with predictive analytics.
  3. Streamlining Financial Services-Detecting fraud through adaptive AI systems. Automating personalized financial advice and investment strategies.
  4. Personalizing Retail Experiences-Creating AI-driven product recommendations and virtual try-ons. Managing inventory with predictive demand forecasting tools.
  5. Innovating in Entertainment-Assisting scriptwriting and generating creative content for media. Personalizing viewer content streams with preference-based AI curation.
  6. Educating with Adaptability-Tailoring learning experiences with pace-adaptive educational modules. Providing automated essay scoring and feedback for academic support.
  7. Optimizing Agriculture-Monitoring crops and soil with predictive AI for optimal yields. Designing farm layouts for maximum land and resource efficiency.
  8. Enhancing Energy Management-Predictively maintaining energy grids to prevent outages. Simulating consumption patterns to improve energy distribution.
  9. Transforming Real Estate-Virtually staging properties with AI-generated interior designs. Analyzing market trends for strategic property valuations.
  10. Advancing Manufacturing Processes-Utilizing generative design for optimized part manufacturing.Implementing AI for predictive maintenance and quality control.
  11. Evolving Telecommunications-Optimizing network operations with traffic prediction models. Deploying AI customer service for personalized support.

Generative AI is paving the way for a future where technology and human ingenuity combine to create unparalleled efficiency and innovation. As we harness these tools, every industry stands on the cusp of transformation

Data-Driven Insight: The Generative AI Market is Booming!

The latest AI TAM research has revealed some staggering growth figures in the Generative AI space. Here’s what the numbers are telling us:

BCG research

✅ The Generative AI market is expected to grow by +66% year-on-year.

✅ Healthcare is leading the charge with an astonishing 85% compound annual growth rate (CAGR) from 2022–2025.

✅ The Banking, Financial Services, and Insurance (BFSI) sector isn’t far behind with a robust 75% CAGR in the same period.

✅ Even traditionally slower-moving sectors like the public sector are expected to see a significant 52% CAGR.

This trajectory puts the Generative AI TAM at a whopping $121B by 2027. The growth is led by significant investments in Healthcare, Consumer applications, and the BFSI sector.

Innovation is accelerating, and the adoption of AI technologies is expanding across industries. Whether it’s enhancing customer experiences, streamlining operations, or pioneering new services, the value proposition of Generative AI is clearer than ever

BCG research

Generative AI Impact on Roles:

  • Social Media Specialists: Moving from content creation to building customer relationships.
  • Advertisers: Shifting focus to exploring new advertising channels and opportunities.

Finance Sector Evolution:

  • Accountants: Transitioning from data entry to strategizing on accounting policies and programs.
  • Payroll Specialists: Shifting from processing tasks to ensuring legal compliance and employee support.

IT Sector Transformation:

  • Software Engineers: From low-level coding to designing complex algorithms and ensuring code safety.
  • Help Desk Support: From troubleshooting common issues to addressing system-wide technical challenges.

Sales Role Advancement:

  • Sales Representatives: From logging customer interactions to building in-depth customer relationships.
  • Deals Desk Support: From quoting to developing complex, customized pricing models.

Overarching Themes:

  • Embrace of continuous learning and adaptability in the face of AI integration.
  • The importance of retraining and reskilling the workforce to complement AI capabilities.
  • The strategic realignment of roles focuses on human-centric skills like empathy, creativity, and strategic thinking.

Future Outlook:

The necessity for organizations to foster a culture of improvement and adaptability.

Recognition of AI as a tool for augmentation rather than replacement.

Encouragement for professionals to evolve with their roles and embrace the change brought by AI.

Mckinsey analysis How much value will be generated via Cloud?

  1. An estimated additional run-rate EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $3,259 billion is projected for Forbes 2000 companies in 2030, attributed to the migration to public cloud services.
  2. The value generated from cloud technology is categorized into three dimensions:
  • Rejuvenate: with an estimated value of $569 billion, driven by IT cost optimization and resilience improvement.
  • Innovate: accounting for $2,490 billion, primarily through core operations digitization and innovation-driven growth.
  • Pioneer: with over $200+ billion, stemming from new business models involving AI, quantum computing, and the metaverse.

The potential for value generation varies significantly by sector, with industries like high tech, oil and gas, retail, healthcare services, insurance, and banking predicted to realize more value from cloud technology by 2030.

The EBITDA impact by industry is influenced by five factors:

Industry’s revenue share in the Forbes 2000 list.

IT spend intensity (the percentage of revenues a given industry spends on IT).

AI potential (the EBITDA impact of cloud-enabled AI use cases).

IoT potential (the EBITDA impact of cloud-enabled IoT use cases).

Automation potential (the EBITDA impact of cloud-enabled automation use cases).

All industries across the Forbes 2000 are expected to see an increase in EBITDA by more than 20 percent on average, with the largest impacts forecasted in sectors with high revenue share in the Forbes 2000, intense IT spending, and significant engagement with AI, IoT, and automation technologies.

Pioneers LLM: So what does it cost to experiment with GEN AI?

BCG research

Regards,

Sidhartha Sharma

Amazon & AWS | 18+ yr I Strategy & Digital Transformation I Management Consulting|Ex-Mckinsey, BCG,EY |Digital Innovation | GTM & Sales |Digital Ecosystem | AI,Data-Driven Model I Cloud☁️ l ESG|CXO Advisor #Personalviews

https://www.linkedin.com/in/sidharthasharmadigitalandstrategy/

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Sidhartha Sharma- Future of AI,Tech,Digital & Data

~18+yrs Consulting- Amazon, AWS, McKinsey & BCG-Digital Strategy, Ecosystems & Ventures | EY| Start-Up| Platforms | AI | Author & TEDx Speaker. Views Personal