Research Paper: Applying Artificial Intelligence in the Post-COVID World
Publisher: Asian Institute of Transport Development
Author: TCA Sharad Raghavan
The ongoing COVID-19 pandemic is forcing world economies to shift their focus, companies to restructure their supply lines and work patterns, and employees to navigate a new work-from-home culture. While economies and companies have long been driven by the twin philosophies of cost and time reduction, recent events have forced them to rethink these imperatives in the face of more pressing exigencies.
Increasing nationalistic tendencies in major economies such as the US, its trade disputes with other major economies and the growing realisation among countries like India that it might make more economic sense to be more self-reliant, has meant that the global economic model undergoing a steady shift. This shift has been hastened by the COVID-19 pandemic, with the resultant country-wide lockdowns across the world decimating supply chains and changing the character and pattern of demand, perhaps permanently.
The remote working set-up, which was only being used by some companies, has become a necessity for all companies as they implement work-from-home measures. While most will go back to working from office, the reduction in fixed costs arising out of giving up permanent office spaces might drive many companies to adopt work-from-home practices permanently.
Companies that used to base their strategy on setting up high volume, low-cost manufacturing units in one or two locations are now looking to revamp their supply chains to include redundancies so that they have a backup in case of crisis. Customers, used to thronging malls and shopping centres, have been forced to shop online, and the fear of the virus is likely to ensure that this trend continues.
The rise of computing technology and, in particular, Artificial Intelligence, will play a key role in how well companies can adapt to these new circumstances. The ability of Artificial Intelligence systems to analyse large amounts of data, predict trends, and take action means that they will become essential tools for companies that want to be agile, nimble, and flexible when it comes to their supply chains.
Similarly, Artificial Intelligence modules will be very useful for companies looking to efficiently assign work to employees who are working remotely—thereby reducing costs and increasing productivity. Other applications of Artificial Intelligence include the powerful analysis of consumer behaviour to predict new trends in even human-centric industries such as fashion.
Artificial Intelligence also finds its use in automation, especially industrial automation. The combination of Artificial Intelligence and automation has led to the birth of Intelligent Automation. At a time when companies want factories that can run for longer durations without impinging on human rights, and don’t have to shut down due to public health crises, Intelligent Automation will see huge growth in the next 10-15 years.
The post-COVID world offers a number of opportunities for the ramping up of Artificial Intelligence, Machine Learning, and Intelligent Automation. Whether it is to do with setting up more resilient supply chains, optimising workforce deployment, predicting consumer trends, or simply increasing efficiency through industrial Automation, Artificial Intelligence has the scope to significantly reduce costs and increase sales for companies.
At the individual level, Artificial Intelligence has the potential to significantly personalise the consumer experience. This personalisation will be taken to a whole new level when it is joined with the power of virtual reality. However, the flip side of Automation when it comes to the individual is the potential impact on jobs.
While it is certain that low-skilled workers will face a greater challenge from Automation, there will likely be a longer term benefit for higher-skilled workers and for the economy as a whole. It is, therefore, important that governments and companies do what they can to up-skill the workforce and prepare them for the upcoming change.
Governments must invest quickly and heavily in ramping up education and skilling so as to equip workers with the tools to survive in a new work environment. At the same time, companies must also train their workers and seek their inputs regarding the best ways to deploy Intelligent Automation solutions. Finally, it is the responsibility of governments to establish strong social safety nets for workers so that those who cannot adapt to the new technology are not left out in the cold.
Overall, research predicts that the implementation of Artificial Intelligence will add about $15 trillion to global GDP by 2030. It now has to be the endeavour of governments and companies that this benefit is felt by all, and not just a few. When deployed sensitively and thoughtfully, these solutions could help governments and companies emerge from the COVID-19 crisis stronger and more resilient.
This research paper tracks the evolution of Artificial Intelligence, how it is distinct from Machine Learning and Automation, and how all three aspects can be applied in the world.
TCA Sharad Raghavan 