Transformative Impact of AI: Insights from CONVERGE LIVE Singapore

Business and tech leaders at the CONVERGE LIVE event in Singapore discussed the rapid adoption of artificial intelligence (AI) and its significant implications for industries and the workforce. Joe Tsai, chairman of Alibaba, emphasized AI’s role in enhancing human productivity, suggesting that approximately 60% of the global GDP, which stands at around $100 trillion, is derived from labor income. He estimated that if 20% of this labor income, about $60 trillion, could be improved by AI at a 20% cost reduction, it would create a total addressable market of $10 trillion. This presents an exceptional opportunity for those investing in AI.

Kamal Bhatia, CEO of Principal Asset Management, pointed out that the most promising investment opportunities will be found in AI infrastructure over the next two, three, to five years, predicting significant profit potential in this area. Peta Latimer, president of Mercer Asia, remarked on the transition from a “doing revolution” to a “thinking revolution,” indicating that the impact of AI is increasingly felt in white-collar jobs and professional services rather than just blue-collar positions. Guy Diedrich, SVP and Global Innovation Officer at Cisco, added that the focus should shift from traditional job descriptions to workflows, reflecting the evolving nature of work in conjunction with AI advancements.

A report by McKinsey projected that over 70% of employees believe generative AI will change at least 30% of their work within two years. It also highlighted that 92% of companies plan to increase their AI investments significantly by 2028. These insights underscore the transformative potential of AI across various sectors, emphasizing the urgent need for businesses to adapt to these changes.

Source: CNBC