A Study On The Impact Of Generative AI By Cognizant Predicts It Could Inject $1 Trillion Into The US Economy Within 10 years

A landmark joint study from Oxford Economics and Cognizant predicts that generative AI will impact 90% of jobs in the US, highlighting the critical need for strategic retooling to sustain economic growth.

TEANECK, N.J. , Jan. 11, 2024 /PRNewswire/ -- In collaboration with Oxford Economics, Cognizant (NASDAQ: CTSH ) today released findings from its new New Work, New World economic impact study , which predicts that 90% of jobs will be affected in some way by generative AI (gen AI), laying the foundation for a profound change in the way we approach work, productivity and economic growth. The study also concludes that the impact of technology will be influenced by the pace of adoption by companies and the speed with which people can adapt to new ways of working.

"Our study aims to lift the curtain on the effects that generative AI can have on workers around the world," said Adrian Cooper , CEO of Oxford Economics. "The research results highlight how quickly this technology could alter the course of the U.S. economy, and provide valuable insights for leaders to harness its potential and adapt quickly."

Generative AI offers the potential to improve operational efficiency, create new revenue streams, innovate products and services, and ultimately redefine businesses. To quantify the potential impact of generative AI on productivity and the future of work, Cognizant partnered with Oxford Economics to create an economic model that analyzes three scenarios of generative AI adoption by US businesses. This model considered 18,000 tasks that drive the US economy, and closely examines the impact that generative AI can have on jobs that are on the scale of these tasks. Although it focuses on the American workforce, the general themes emerging from the results can be applied globally. The investigation revealed key aspects, such as the following:

AI adoption will skyrocket in the next decade before reaching maturity: Enterprises are still in the experimental phase of adopting AI capabilities. However, the results reveal that adoption could rise from 13% to 31% in just four to eight years. After 15 years, the results predict that adoption could slow, but will continue to grow for at least 15 more years.
Economic advancement could skyrocket: Generative AI technology would boost U.S. productivity by 1.7 to 3.5 percent and grow U.S. GDP by $477,000 to $1 trillion in annual value in the coming 10 years, according to adoption rates by companies.
Simultaneously, the labor market could be disrupted: Half of jobs (52%) are expected to change significantly as generative AI is integrated to automate work activities. As a result, approximately 9% of the current U.S. workforce could be displaced, and 1% could have difficulty finding new employment based on historical economic changes.
Jobs with higher levels of knowledge may be the most affected: In the past, technological advances and automation have most affected manual work and process-focused knowledge work. Generative AI is destined to cause the opposite effect, since it will have a greater impact on knowledge-related work. Additionally, jobs related to credit analysis, computer programming, web development, database administration, and graphic design already have a theoretical maximum exposure of around 50%. By 2032, as technology advances, the exposure of some jobs could reach 80%.
Even CEOs will feel the impact: Data reveals that C-suite executives, including CEOs, could experience a theoretical peak exposure (the degree to which a job's tasks are susceptible to being automated by generative AI) of more than 25%, as generative AI begins to be used for everything from competitive assessments to strategic decision making.

“Generative AI has already wowed us with its capabilities across industries, but the true impact of its integration into our daily business operations has barely scratched the surface,” said Ravi Kumar S, CEO of Cognizant. "If we want to apply the potential of technology to amplify our productivity, we must understand its full influence on the future of work and collaborate to create the best opportunities for people to grow alongside it."

Retraining workers as AI advances

Although the time horizon of this research spans more than a decade, Cognizant believes leaders from all sectors of society should work together today to establish a new pact of trust that allows businesses, workers and economies to thrive in the future. era of generative AI. As this technology becomes more widespread in the workplace, new employee skills will be in demand to support areas such as business strategy and AI management. Reskilling programs, once considered a tactical complement to an employee's career path, will become an essential part of the workday, with time allocated for training and education.

In tune with this vision, Cognizant recently launched its Synapse initiative, designed to revolutionize and rebalance technology education and workforce development, redefining opportunities for more than one million people around the world. This initiative, based on Cognizant's deep experience and long history of technological reskilling, aims to create a new pool of employable talent for the expanding digital economy by 2026. Learn more about Synapse here .

To view the full study and learn more, visit https://www.cognizant.com/us/en/gen-ai-economic-model-oxford-economics .

Methodology: Cognizant "New Work, New World" Study
Cognizant commissioned Oxford Economics to evaluate and forecast the economic impact of generative AI technology in the United States over the next 10 years.

The project consisted of five main work phases that allowed the assumptions for the Oxford Global Economic Model (GEM) to be sequentially developed. These metrics are designed to reflect how we expect the deployment of generative AI technologies by U.S. businesses during the forecast period could impact the structural drivers of economic activity, particularly productivity growth. total factors (TFP). To reflect the uncertainty inherent in this process, three scenarios with different results were proposed. To see the full methodology, click here .

About Cognizant
Cognizant (Nasdaq: CTSH ) designs the modern business world. We help our clients modernize their technology, reframe processes, and transform experiences so they can stay ahead in a rapidly changing world. Together, we improve everyday life. See how we do it at www.cognizant.com or @cognizant .

For more information, contact:

Corporativo
Gabby Gugliocciello
Gabrielle.Gugliocciello@cognizant.com

India
Rashmi Vasisht
rashmi.vasisht@cognizant.com

Americas / Europe, Middle East , Africa / Asia Pacific and Japan
Christina Schneider
christina.schneider@cognizant.com

Forward-looking statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties and assumptions regarding future events that may not be exact. These statements include, but are not limited to, express or implied forward-looking statements regarding the adoption of generative artificial intelligence, the effects of generative artificial intelligence on the workforce and the economy, and the effectiveness and results of our new Synapse initiative. Such statements are not promises or guarantees, but rather the results of the study mentioned above, and are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated. in these forward-looking statements. Current and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Factors that could cause results to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets in which we operate, the market competitive talent pool and its impact on employee recruitment and retention, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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FUENTE Cognizant Technology Solutions Corporation

First published on Fri, Jan 12, 2024

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