Analysis of AI's Impact on UK Business and Economic Growth

This report provides a comprehensive analysis of the transformative impact of Artificial Intelligence (AI) on the business landscape and economic growth in the United Kingdom. It explores the current state of technological innovation, highlighting the functionality of technology in various industries, including facial recognition and automation, and provides a timeline of key technological developments from the 1950s to 2015. The report examines the role of cloud computing in fostering business expansion and operational efficiency. Furthermore, it delves into the competitive advantages that AI offers, such as positioning analysis and the ability to create customer value, while also considering the competitive landscape and unique benefits of AI. The report concludes by discussing strategies for sustaining and developing technological innovativeness, including advancing the use of state-of-the-art technology and reviewing relevant literature. The report emphasizes the importance of AI in driving productivity, innovation, and improving the quality of life, offering insights into its future potential and the need for ethical considerations and strategic implementation.

Face-detecting system

Table of Contents
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................7

Introduction
In present era of digitalization and technological advancement there has been a great
transformation in businesses. Technology is playing a crucial role in economic growth of
countries. it is highly contributing in GDP of nation. Due to this, developing countries are getting
high benefit. The evolution of AI has boosted growth of research and development. in recent
time, there has been many technology innovations occurred in UK (Daryanavard and Harifi,
2018). it has resulted in rise in percentage of GDP. it is said that with continuous use of AI, UK
will add huge amount in their GDP expected 10.3%. AI has improved the operational efficiency
of industries. It is not only limited to one sector but is also used by SME. This has accelerated
growth in GDP. moreover, a new and updated IT infrastructure has been developed by
government. It has provided vast number of opportunities for businesses to expand in different
markets. Due to this social life of people has improved as their needs are fulfilled. This report
will describe about how AI has transformed way of doing business. it will also discuss what
changes has occurred in UK economy by using AI.
Positioning in market – today AI has developed a unique image in market. it has the latest
technological development. every major company is focused on implementing AI in operations.
the technology has positioned itself at top.
Main body
3 Current State of Technological Innovation
3.1 Functionality of Tech in Industry
Information technology is playing significant role in growth and development of
business. the major advantage it has provided is to small and medium enterprises who are able to
enter in market with new and innovative products and services. there are many functions which
is played by IT. the main function is to store, manage, process, etc. data and information. With
help of it, businesses are able to take effective decision (Malusare and et.al., 2017). moreover,
IT helps in managing of operations and monitoring it. its another use is in tracking of data from
different sources and interpreting it to get proper results. Technology has made the operations
automated which has reduced involvement of humans. other than this, it has created a centralised
communication structure through which data and information is quickly shared. The enterprises
which are globally expanded have connected their operations.
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Facial recognition of AI- AI consist of high tech features which enables in using robots in doing
of task. With integration in machines it becomes easy to do complex task in more effective and
efficient way. this saves cost as well time. The technology is very expensive. It requires huge
investment in developing and implementing. Also, high and advance technology is required to
maintain it. AI has helped in generating brand value in market for companies. auto mobile sector
is highly benefited with this. They have distinguished their model, design etc. by using AI and
developed high brand image.
3.2 Time-line of Tech-Development
Technological advancement has taken place over a particular period of time. The
continuous changes in technology has provided new tools and equipment’s. this has enforced
business to make changes to cope up with advancement (Technological developments. 2018). It
is been said that from past 75 years almost 900 technological inventions are done. There has
occurred many technological developments which is as follows :-
Year Development
1950 here, first E mail was sent at MIT. Also,
ARPANET was developed through which
internet ancestor are connected.
1980 at this stage first personal computer was
developed and launched by Microsoft. Also,
first Microsoft word software was launched.
During last 19th century world wide web at
CERN was built (Ji and Xiong, UBTECH
Robotics Corp, 2018).
1990 till this stage optical fibre were developed.
moreover, IBM thinkPAD 700C laptop was
created. Also, peer to peer fie sharing system
was launched and Sirius satellite radio was
introduced
2005 this year was a major transformation year in
technology. in this many things were
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introduced and developed. the social
networking site Facebook was released, You
tube, Skype, etc. was launched. Apple
introduced their first Iphone which is
considered as major advancement in
technology
2010 the trend continued till this year where more
new social networking sites were launched
such as Instagram, Snapchat, etc. it allowed
people to get connected to each other from all
around the world.
2015 till 2015, AI, cloud computing, etc. Were
invented. It made it easy for business and
people to perform daily task.
3.3 Extensive growth through Cloud
The innovation in technology has led to evolution of cloud computing (Pasupuleti and
Ramachandran, 2018). it is a combination of shared computer resources through which high
quality services are provided. Basically, it includes a host server which stores, manage, access,
etc. data and information in effective way. usually, these types of services are provided by third
parties. Businesses are highly benefited from cloud computing. there has been rapid growth in
cloud computing industry. it has provided a platform to use as a medium to expand services in
large area. However, it has also enabled business to depend on third parties. Thus, they are able
to focus on other areas. with using it, services are provided all over the world. It has allowed
business to interact with large number of people and build customer base. However, small
companies are also able to grow by using cloud. The flexibility in using cloud has made it easy
for business to increase range of operations. many start ups are been started due to cloud
computing. they are also engaged in providing various cloud computing services. this has raised
in expansion of operation. However, many new services are been generated as well. So, small
firms are using those to grow and develop.
4 Competitive Advantage of AI
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4.3 Positioning Analysis
AI has become a major source to do complex operations in easier way. it has allowed the
to increase their productivity. the use of AI has benefited in production and designing of complex
products (Moallem, Mousavi and Naghibzadeh, 2015). in addition to it, AI has led to gain in
competitive advantage in market. by using it, businesses are able to create product value so that
customer are retained. According to Gartner, there are four quadrant that are leader, masters,
contenders and pacesetters. AI is been placed in leader quadrant (Gartner quadrant. 2017). It is
because use of AI helps in generating customer value. By providing high and unique services to
people, companies are able to distinguish it from its rivals. This results in attracting large number
of people and retaining them. there are many factors which provide competitive analysis. For
example, reducing complexity of task results in innovation. Through this, new product and
services are developed. another factor is creating customer value makes a unique image in
market. due to this, AI is positioned in Leader quadrant.
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4.4 Competitors or alternatives
The use of AI by many companies in UK has given them a competitive advantage. this is
because they are able to ensure service and product quality which has led to retain customer
(Bosch, Chen and D’Mello, 2014). Moreover, AI includes data analytics which had made it
easy for business to analyse information in quick way and taking decisions. along with this, data
analytics has helped in determining needs of people and analysing market conditions. Then,
accordingly strategies are developed. AI has increased capacity of organisation to develop new
products. furthermore, AI is concept of which there is no alternative. This restricts businesses to
implement in their functions. Also, AI requires high cost and in depth machine learning to
implement it. the functions included in are not complex to maintain and control.
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4.5 Unique Advantage of Technology
Technology has not only provided advantage to business, but also society is highly
impacted. It has resulted in improving the living standards of people. they are able to fulfil their
needs. it has led to increase in desire for more. moreover, rise in providing services at large level
has allowed everyone to access it (Kwon and Lee, 2018). the unique advantage of AI is it has
reduced complexity of task. Business can easily perform all task in effective manner and attain
goals. AI has allowed in maintaining quality of product by identifying small errors and
eliminating it. beside this, integration of AI with internet has resulted in smart lock, smart homes,
etc. it has allowed people to communicate through internet. they overall machines has become
automated. Both business and people are able to control things in systematic way. moreover, AI
has benefited in maintaining consistency of business operations. AI uniqueness is it helps in
making things easier. When integrated with machines it ensures that activity is performed in
creative way. for example, robots are used in assembling of vehicles. so, they ensure that each
part is fixed at particular place. Moreover, it supports workers in fast and quick assembling of
parts. Similarly, in fast food industry robots are used in taking and delivering orders. With help
of it, data is processed quickly and order is prepared. now, businesses are focusing on developing
these areas so that their operational efficiency can be enhanced.
5 Sustaining or Developing Tech-Innovativeness
5.1 Advancing Use or Technology with State of the Art Technology
It is important to maintain efficiency of AI systems to that in future with advancement in
technology there is no negative impact on it. also, by developing proper strategies and systems
AI can be used in effective way. due to this business will be able to implement AI and use it. in
addition to it, with advance use of AI many changes can be made (Kheirkhah and Tabatabaie,
2015). By using it quality of products and services can improved. it will also help in improving
social life of people by providing them high quality goods. In many areas such as supply chain
and logistics management, marketing, etc. AI can be implemented. Hence, operational efficiency
will improve leading to more productivity. AI will also lead to innovation in technology and
diversifying application by delivering services. the continuous use of AI will be beneficial in
making all things automated. It is expected that soon robots will replace humans and perform all
activities. This will save time as well cost and providing all facilities instantly.
5.2 Review of State of the Art Literature
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According to (Malusare and et.al., 2017) AI is a complex technology which is not easy to
implement. It is because it requires extensive research and application for support. In present
times, businesses in UK are highly focused on implementation of AI to grow and compete in
market. for this they are investing huge amount in research and technology. This has helped them
to determine needs and create a plan to implement AI. as said by (Daryanavard and Harifi,
2018) UK requires an improved and proper IT infrastructure for greater connectivity. This will
boost small and medium enterprise to implement AI. it has been said that there are many other
things which has to be taken into consideration. It requires in depth learning and understanding
of AI application and systems. As AI includes complex algorithms and machine learning
language to be tested, it must be implemented as per needs. The companies operating in UK
needs to understand risk and challenges related to AI so that strategies can be developed. It will
help them to mitigate risk and overcome challenges by taking proper measures. Moreover,
policies and standards must be formed so that AI is used in ethical manner.
Personal opinion and recommendation –
In my view AI has made life of people and way of doing business easy. It has helped in
maintaining quality of products. also, in future AI will be highly used in other sectors as well
such as Airline, hospitality, etc. this will ease and fastened the process of performing daily
activities. I think that AI has become a major source for businesses to gain competitive
advantage.
Recommendation-
Businesses should determine needs so that accordingly AI applications can be
implemented. They must develop a proper plan and proceed in step by step manner. Besides this,
AI system must be maintained to enhance their efficiency. It will help in coping up with
technological advancement. There must be some policies set so that AI is worked upon it.
Conclusion
Hereby, it is concluded that technological advancement will help UK in increasing their
GDP to a great extent. The implementation of AI has created a platform to enhance productivity
of business. they are able to develop new products at low cost with high quality. It is expected
that in 3-5 years there will be a complete transformation in doing business in UK. therefore,
companies existing in UK can install effective systems to maintain AI. this will help in updating
their mechanism in developing products. Also, certain standards can be set so that AI
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performance can be measured. Thus, on basis of it systems can be tested and installed in
effective way. another thing business can do is determining needs of AI and then developing
plan. This will help in ensuring that AI fulfil needs and attain goals and objectives. This has also
helped in ensuring that standards are maintained and procedure is followed. Many businesses
have developed a proper policies and procedure related to use of applications.
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REFERENCES
Books and journals
Bosch, N., Chen, Y. and D’Mello, S., 2014, June. It’s written on your face: detecting
affective states from facial expressions while learning computer programming. In International
Conference on Intelligent Tutoring Systems (pp. 39-44). Springer, Cham.
Daryanavard, H. and Harifi, A., 2018, May. Implementing Face Detection System on UAV
Using Raspberry Pi Platform. In Electrical Engineering (ICEE), Iranian Conference on (pp.
1720-1723). IEEE.
Ji, Y. and Xiong, Y., UBTECH Robotics Corp, 2018. Face detecting and tracking method
and device and method and system for controlling rotation of robot head. U.S. Patent 9,892,312.
Kheirkhah, E. and Tabatabaie, Z.S., 2015. A hybrid face detection approach in color
images with complex background. Indian Journal of Science and Technology, 8(1), pp.49-60.
Kwon, B.M. and Lee, K.H., 2018. An introduction to face-recognition methods and its
implementation in software applications. International Journal of Information Technology and
Management, 17(1-2), pp.33-43.
Malusare, P. and et.al., 2017. Face and Person Recognition from Unconstrained
Video. International Journal of Engineering Science, 4295.
Moallem, P., Mousavi, B.S. and Naghibzadeh, S.S., 2015. Fuzzy inference system
optimized by genetic algorithm for robust face and pose detection. International Journal of
Artificial Intelligence, 13(2), pp.73-88.
Pasupuleti, S.B. and Ramachandran, P., 2018. Vision Intelligence System for Power
Management Using Human Activity Detection System. In Intelligent Embedded Systems(pp.
225-240). Springer, Singapore.
Online
Gartner quadrant. 2017. [online] Available Through :
<https://blogs.gartner.com/anthony_bradley/2017/01/03/gartner-launches-frontrunners-a-new-
type-of-quadrant/>
Technological developments. 2018. [online] Available Through : <
https://www.timetoast.com/timelines/major-technological-developments >
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