The steady decline in business profitability across multiple industries threatens to erode future investment, innovation and shareholder value. Fortunately, a new factor of production—artificial intelligence (AI)—is emerging that can help kick-start profitability.
Our research shows that businesses that successfully apply AI could create up to US$215 billion in gross value added (GVA) across 11 industries in Singapore by 2035. GVA is a close approximation of gross domestic product that accounts for the value of goods and services produced.
How AI will reverse falling profit growth
Whether enhancing the production chain with improvements to supply chain management or streamlining the sales process, AI offers huge advantages over traditional automation.
Workers can delegate low value-added tasks to AI and be more productive in their main tasks. AI can also help businesses maximize their asset utilization rates.
By accelerating the development of new products, AI helps to increase innovation, eliminate redundant costs and generate new revenue streams to increase profitability.
The impact of AI in your industry
AI has the potential to markedly increase industry growth. Business services, financial services, and manufacturing are the three sectors in Singapore that will benefit most from the application of AI.
We compared the economic growth rates of 11 industries by 2035 in a baseline scenario showing current assumptions of expected growth, to an AI scenario showing expected growth with AI integrated into economic processes.
The impact of AI on Singapore’s growth by 2035 (in US$ billion)
Source Accenture and Frontier Economics
Business services include Legal, Accounting, Real Estate and Consulting
Other services include arts and entertainment
Eight AI strategies to lead in the new
Accenture Research shapes trends and creates data-driven insights about the most pressing issues global organizations face. Combining the power of innovative research techniques with a deep understanding of our clients’ industries, our team of 250 researchers and analysts spans 23 countries and publishes hundreds of reports, articles and points of view every year. Our thought-provoking research—supported by proprietary data and partnerships with leading organizations such as MIT and Singularity—guides our innovations and allows us to transform theories and fresh ideas into real-world solutions for our clients.