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Visualizing the Massive $15.7 Trillion Impact of AI

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For the people most immersed in the tech sector, it’s hard to think of a more controversial topic than the ultimate impact of artificial intelligence (AI) on society.

By eventually empowering machines with a level of superintelligence, there are many different possible outcomes ranging from Kurzweil’s technological singularity to the more dire predictions popularized by Elon Musk.

Despite this wide gap in potential outcomes, most technologists do agree on one thing: AI will have a profound impact on the society and the way we do business.

The Economic Impact of AI

Today’s infographic comes from the Extraordinary Future 2017, a new conference in Vancouver, BC that focuses on emerging technologies such as AI, autonomous vehicles, fintech, and blockchain tech.

In the below infographic, we look recent projections from PwC and Accenture regarding AI’s economic impact, as well as the industries and countries that will be the most profoundly affected.

Visualizing the Massive $15.7 Trillion Impact of AI

According to PwC’s most recent report on the topic, the impact of artificial intelligence (AI) will be transformative.

By 2030, AI is expected to provide a $15.7 trillion boost to GDP worldwide – the equivalent of adding 13 new Australias to the global economy.

A Geographic Breakdown

Where will AI’s impact be most pronounced?

According to PwC, China will be the region receiving the most economic benefit ($7.0 trillion) from AI being integrated into various industries:

RegionEconomic Impact of AI (2030)% of Total
China$7.0 trillion44.6%
North America$3.7 trillion23.6%
Northern Europe$1.8 trillion11.5%
Developed Asia$0.9 trillion5.7%
Southern Europe$0.7 trillion4.5%
Latin America$0.5 trillion3.2%
Rest of World$1.2 trillion7.6%
Total$15.7 trillion100.0%

Further, the global growth from AI can be divided into two major areas, according to PwC: labor productivity improvements ($6.6 trillion) and increased consumer demand ($9.1 trillion).

Industries Most Affected

But how will AI impact industries on an individual level?

For that, we turn to Accenture’s recent report, which breaks down a similar projection of $14 trillion of gross value added (GVA) by 2035, with estimates for AI’s impact on specific industries.

Industry2035 GVA (Baseline)2035 GVA (AI steady state)
Manufacturing$8.4 trillion$12.2 trillion
Professional Services$7.5 trillion$9.3 trillion
Wholesale & Retail$6.2 trillion$8.4 trillion
Public Services$4.0 trillion$4.9 trillion
Information & Communication$3.7 trillion$4.7 trillion
Financial Services$3.4 trillion$4.6 trillion
Construction$2.8 trillion$3.3 trillion
Transportation & Storage$2.1 trillion$2.9 trillion

Manufacturing will see nearly $4 trillion in growth from AI alone – and many other industries will undergo significant changes as well.

To learn more about other tech that will have a big impact on our future, see a Timeline of Future Technology.

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Technology

Which Companies Make Up the “Magnificent Seven” Stocks?

FAANG is dead… meet the ‘Magnificent Seven’ stocks that now make up over 25% of the S&P 500.

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This cropped chart highlights the Magnificent Seven stocks, a group of seven megacap stocks that replace the previous FAANG.

Which Companies Make Up the “Magnificent Seven” Stocks?

In 2013 CNBC analyst Jim Cramer popularized “FANG,” comprised of Facebook (now Meta), Amazon, Netflix, and Google (now Alphabet), as a shorthand for the best performing technology stocks on the market. Apple, added in 2017, made it FAANG.

However, over the last year a new moniker given by Bank of America analyst Michael Hartnett highlights the most valuable and popularly-owned companies on the American stock market: the “Magnificent Seven” stocks.

We visualize the Magnificent Seven’s market capitalization and 5-year stock performance as of November 2023 using data from Google Finance and CompaniesMarketCap.

The Magnificent Seven Stocks by Market Cap and 5-Year Return

The Magnificent Seven stocks are megacap companies focused and capitalizing on tech growth trends including AI, cloud computing, and cutting-edge hardware and software.

Four of the five FAANG stocks retain their place amongst the Magnificent Seven, with newcomers Nvidia, Tesla, and Microsoft joining the group. Following a poor 2022 performance and having more difficulty capitalizing on tech trends, Netflix is the sole FAANG company not included.

Here’s a look at the companies ranked by their market capitalization on November 6, 2023, alongside their 5-year stock performance:

RankCompanyMarket Cap5 Year Performance
1Apple$2.8 trillion+250%
2Microsoft$2.6 trillion+224%
3Alphabet$1.6 trillion+141%
4Amazon$1.4 trillion+63%
5Nvidia$1.1 trillion+783%
6Meta$811 billion+118%
7Tesla$690 billion+829%

The Magnificent Seven make up more than one-quarter of the S&P 500 and more than half of the Nasdaq 100.

Meanwhile, five of the seven are part of the rare trillion dollar club, with Nvidia being the most recent entry.

A common theme among the Magnificent Seven is their ability to collect vast amounts of customer data, create cutting-edge hardware and software, as well as harness the power of AI.

However, if Netflix gets back on track—recently announcing its new ad-supported membership tier has 15 million subscribers—we could soon see a “Magnificent Eight.”

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