Question

A PEST analysis on artificial intelligence (AI) and its effects

Answer 1

PEST analysis on artificial intelligence (AI) and its effects

Political

• All the mistakes committed by past governments will come out.
• The political environment will be turbulent and chaotic. Because of job loss and anger of people, the governments will be swaying between conservatism and liberalization.
• Government may bring rules to limit the use of automation in order to stop the loss of jobs of people.
• AI and machine learning will be used very much in political campaigns, leading to huge advantages to parties who use them.
• Countries throughout the world will come together in technology sharing and training in order to save humans from the risks of AI and machine learning

Economic

• There will be huge improvement in productivity
• Companies which can keep up with the technological changes will sustain their business and companies which cannot adapt to these changes will go out of business.
• Investment in AI and machine learning will rise exponentially
• Data will become the most important component in conducting business
• Marketing activities will be more effective and this will result in improved economic activity
• Predicting and adapting to future trends will become much easier with the help of AI.

Social

• Improved automation because of AI will lead to loss of millions of jobs.
• New types of job in machine learning technologies will be created
• Seeing that AI only helps humans and does not intrude or risk human lives will be a challenge.
• Low skilled employees will shift to jobs that are free from computerization.

Technological

• Technological improvements will be made in almost every field leading to the creation of new types of jobs
• Advances in hardware and machine capabilities will lead to innovation and growth of completely new markets
• Massive improvement in technology as the machines will start to learn by themselves.
• Everything from energy management, farming, manufacturing, services will be smarter and much more efficient.
• Elder care will be improved and transportation will be automated.