Artificial intelligence

From Automation to Acceleration: AI's Role in Shaping the Economy

Automation helped machines do simple tasks like sorting mail or managing inventory

Pardeep Sharma

Artificial Intelligence (AI) is changing how economies grow. In the past, automation replaced routine tasks. Now, AI is speeding up entire industries. This shift—from automation to acceleration—is shaping everything from jobs to investments, and from business operations to national policies. 

The Change from Automation to Acceleration 

Automation helped machines do simple tasks like sorting mail or managing inventory. AI, however, does much more. It can read, learn, make decisions, and improve on its own. This leads to faster growth. 

In 2024, about 55% of businesses used AI. By 2025, this number increased to 78%. Many experts believe that AI will soon boost global productivity by 1.5% each year. This is similar to the effect electricity once had on industries. 

AI's Economic Value 

AI is expected to add between $15 trillion and $20 trillion to the global economy by 2030. This comes from three main areas: 

Automation of jobs – AI handles more work in less time. 

Innovation – AI helps create new products and services. 

Better decisions – AI analyzes data to help companies act smarter. 

One study showed that AI could add $4.4 trillion in value from business use cases alone. Another found that countries using AI effectively also see faster growth in other areas like technology, services, and finance. 

How AI Is Changing Jobs 

There is a big debate about how AI affects workers. While some jobs are at risk, others are growing rapidly. 

Jobs at risk: Simple or repetitive jobs are most likely to be replaced. These include customer service agents, data entry clerks, and factory workers. Around 2 million manufacturing jobs may disappear by 2025. 

Jobs created: AI is also creating new roles. Fields like software development, AI research, cybersecurity, and data analysis are seeing strong growth. 

Faster skill change: Jobs linked to AI are changing faster than ever. Employees now need to learn new skills more quickly than before. 

In early 2025, over 35,000 AI-related job openings were posted in the U.S. alone. The average salary for these roles was about $157,000. This shows that while some jobs vanish, others are growing stronger—and more valuable. 

How AI is Helping Different Industries 

AI is not limited to tech companies. It’s now used in many industries to save time, reduce costs, and grow faster. 

Retail 

Large retailers are using AI “super agents” to assist customers, sellers, and staff. These systems answer questions, manage deliveries, and even solve problems. This is helping stores sell more online and improve customer satisfaction. 

Finance 

Banks and insurance companies are using AI to process applications, detect fraud, and manage risks. In 2025, AI usage in financial companies rose from 66% to 73%. Insurance companies showed an even bigger jump—from 48% to 71%. 

Real Estate 

AI tools are now used to predict property values, automate lease agreements, and manage buildings. Real estate investment firms have automated up to 37% of their tasks using AI. 

Technology Firms 

Some tech firms are using AI to avoid hiring more staff. One U.S.-based company plans to save $100 million in 2025 by using AI tools instead of expanding its workforce. 

Other Examples 

In Australia, finance professionals are saving over 5 hours a week using generative AI. However, only 30% of companies have fully adopted AI in their finance departments. 

National Plans and Government Action 

Countries around the world are investing billions to lead the AI race. 

United States 

A large U.S. partnership involving big tech firms and investors has begun building a national AI infrastructure. The project is expected to cost $500 billion and aims to be ready by 2029. 

China 

China has invested over $100 billion to improve smart manufacturing and robotics. The country has also introduced new rules requiring AI-generated content to be labeled for transparency. 

European Union 

The EU launched a €200 billion plan to support AI development. This includes building four AI factories and funding global AI research. The EU also organized a summit to promote safe and inclusive AI. 

India 

India’s AI market is growing fast and is expected to reach $8 billion in 2025. The country has launched programs like IndiaAI and BharatGen to build AI tools in native languages. It is also creating computing centers to support AI growth and train professionals. 

Challenges and Risks 

While AI brings many benefits, it also brings challenges. 

Uneven Growth: Not all sectors or regions grow at the same pace. Healthcare, education, and service jobs are slower to adopt AI due to their complex human needs. 

Job Inequality: Some workers gain while others lose. High-paying tech jobs increase, while low-skill jobs decrease. This can widen the gap between rich and poor. 

Access to AI: Countries with limited infrastructure may struggle to keep up. Even within countries, rural areas or small towns may fall behind if AI tools are too expensive or hard to use. 

Ethical Concerns: There is a growing need to ensure AI is used fairly, safely, and transparently. Many governments are working to create rules and guidelines to prevent misuse. 

What Needs to Be Done 

To make the most of AI while avoiding its risks, the following steps are necessary: 

Reskill Workers: Governments and companies must train people for new roles. Schools and universities should update their courses to include AI and digital skills. 

Build Infrastructure: Fast internet, powerful computers, and digital platforms are needed to support AI tools. Public and private sectors should invest in building this infrastructure. 

Make AI Inclusive: AI should work in all languages and support people from different backgrounds. Tools like India’s Bhashini help include local languages in AI systems. 

Monitor AI Use: Real-time tracking of how AI affects jobs and industries will help create better policies. Data can also help prevent job loss or misuse. 

Final Thoughts 

The move from automation to acceleration is changing the way economies grow. AI is now at the center of this shift—boosting productivity, changing job markets, and driving innovation. Countries and companies that adapt quickly will lead in the years ahead. To make AI work for all, it is important to invest in skills, infrastructure, and fairness. If done right, AI can bring one of the biggest economic transformations in modern history. 

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