AI Could Exaggerate Economic Divide ? McKinsey ((LINK))
Robust digital financial infrastructure proved its worth during the COVID-19-crisis, helping governments cushion people and businesses from the economic shock. The McKinsey Global Institute discusses the next step: economies that embrace data sharing for finance could see GDP gains of between 1 and 5 percent by 2030, with benefits flowing to both consumers and financial institutions. The research examines 24 use cases in banking and payments, focusing on the European Union, United States, United Kingdom, and India.
AI could exaggerate economic divide – McKinsey
Rising temperatures and lethal heat waves could affect livability and effective working hours in major Asian economies and cause regressive impacts within countries. In China, we find that the average share of outdoor working hours lost each year to extreme heat and humidity in exposed areas could increase from 4.5 percent in 2020 to 6.5 percent in 2030 and 8.5 percent in 2050. In India, we find that effectively 30 percent of annual daylight hours may be lost by 2050 in climate-exposed regions, an increase of more than 40 percent from today. Lower income groups in both countries are more susceptible than higher income groups, because low-income populations typically work in outdoor-based industries such as agriculture, mining, and construction or rely on the natural environment. These industries are also at risk from multiple hazards; for example, Indian agriculture may be hit not only by lost hours from extreme heat and humidity but by potential yield declines as well. Additionally, adaptation is expensive and may be out of reach for the economically most vulnerable.
However, robot costs are declining and performance is improving. Will this make a difference? The Boston Consulting Group predicted a percent reduction in prices and a 5 percent improvement in performance in robotics per year over the next decade. If robotic innovation advances rapidly, to where the cost of a robot falls to about $50,000, paybacks in emerging markets will begin to make more economic sense. In Mexico, that period is one year and nine months. But in the Philippines, the payback is still long: eight years and four months. Moreover, such improvements may not be realized. This suggests lower-wage nations will lag in their ability to take advantage of these technologies. This trend could widen productivity and income differences with developed nations. 350c69d7ab