Despite the increasing integration of Artificial Intelligence (AI) across industries, its true potential remains largely untapped. Accenture and Frontier Economics’ thorough analysis predicts a remarkable 40% increase in labor productivity by 2035 in developed nations through AI adoption.
In tandem with global trends, Bangladesh is fervently embracing AI as a linchpin of its digital transformation. Under the visionary leadership of Prime Minister Sheikh Hasina, ambitious plans are underway to integrate AI alongside technologies like robotics, big data, blockchain, and IoT, complemented by the imminent rollout of 5G.
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The impact of AI transcends sectors, with notable enhancements in productivity and quality across industries like retail, finance, and healthcare. With research suggesting a potential 45% increase in economic gains, Bangladesh stands poised to harness AI’s transformative power to propel its growth trajectory.
AI’s Impact on Safety and Efficiency in Bangladesh
In 2008, Bangladesh’s ICT export earnings were a modest $26 million. Today, this figure has skyrocketed to approximately $1 billion. This remarkable growth is supported by significant investments in national infrastructure, including the development of 16 Hi-Tech Parks, 7 Technology Parks, 12 IT Training & Incubation Centers, and a Tier-IV Data Center. The launch of Bangabandhu-1, the country’s first satellite, in 2018 marked Bangladesh’s entry into the space sector.
AI and Machine Learning are at the forefront of driving the fourth industrial revolution. In Bangladesh, where the Manufacturing sector accounts for a substantial 29.2% of the total GDP, the incorporation of these cutting-edge technologies, coupled with data analytics, holds immense potential. By integrating AI into manufacturing processes, there is the promise of reduced raw material usage, heightened efficiency, and streamlined supply chains. Smart Manufacturing, encompassing elements like overall equipment effectiveness (OEE) and adaptive manufacturing, is on the horizon.
AI’s Impact on Manufacturing Sector:
- Contributes 29.2% to GDP
AI and ML Integration:
- Reduces raw material usage
- Heightens efficiency
- Streamlines supply chains
- Includes OEE and adaptive manufacturing
In the agricultural sector, which contributes 14.2% to the GDP, Bangladesh has embarked on numerous initiatives to foster growth. These include the establishment of 245 agriculture information centers, providing low-cost bank account services for farmers, and launching platforms like krishi.gov.bd and a farmer assistance hotline (3331).
Bangladesh is revolutionizing agriculture with IoT-enabled crop monitoring, satellite mapping, and AI-driven solutions for disease forecasting and automated harvesting. In transportation, AI analyzes road conditions, vehicle behavior, and weather patterns, enhancing safety, efficiency, and law enforcement while mitigating issues like harassment and robbery.
Agricultural Initiatives:
- Contributes 14.2% to GDP
Initiatives:
- 245 agriculture information centers
- Low-cost bank account services for farmers
- Platforms like krishi.gov.bd and farmer assistance hotline (3331)
Revolutionizing Agriculture and Transportation:
- IoT-enabled crop monitoring and satellite mapping
- AI-driven disease forecasting and automated harvesting
- Enhances transportation safety and efficiency
The financial sector in Bangladesh is also undergoing a digital transformation with electronic banking. Commercial banks are categorized into Category-1 and Category-2, each with distinct ICT operations aimed at ensuring service continuity and connectivity, signifying a significant evolution in banking infrastructure.
Technological advancements like NLP Bot-driven RSD and AI-based credit management systems are improving efficiency, reducing fraud, and stimulating economic growth. Centralized KYC automation and RPA in trade and e-government are enhancing service quality and eliminating duplication. AI-driven solutions are also streamlining government-to-business (G2B) service delivery, promoting efficiency and effectiveness.
Digital Transformation in Financial Sector:
- Commercial banks categorized into Category-1 and Category-2
Key advancements:
- NLP Bot-driven RSD
- AI-based credit management systems
- Centralized KYC automation
- RPA in trade and e-government
- AI-driven solutions for G2B service delivery
The Economic Potential of GenAI
The global AI market is on an unprecedented trajectory, projected to reach a staggering $1,811.8 billion by 2030 with a CAGR of 37.3%. Beyond traditional applications, AI now permeates every aspect of human life, from virtual assistants to biometric recognition systems, ushering in an era of technological marvels. In industries like BFSI, AI is driving a digital revolution, offering transformative solutions for optimization. For Bangladesh, integrating AI into its BFSI landscape presents an opportunity to fortify its banking, financial services, and insurance sectors, paving the way for future growth and innovation.
Harnessing the transformative power of Generative AI (GenAI) is revolutionizing the BFSI industry. Unlike conventional AI, GenAI generates bespoke content, evolving continuously to sculpt new narratives and imagery. Its impact extends beyond BFSI, influencing sectors like healthcare, retail, and pharmaceuticals. McKinsey predicts GenAI’s annual contribution to the global economy could reach $2.6 trillion to $4.4 trillion, with key functions like marketing, sales, and customer operations reaping significant benefits.
The BFSI sector faces a pivotal moment to enhance customer experiences, improve decision-making, and combat fraud. Globally, AI investment has led to tangible gains in fraud detection, compliance, and cybersecurity. As Bangladesh’s banking sector embraces AI, opportunities abound for strengthening cybersecurity, refining credit ratings, and promoting financial inclusion. The Azure OpenAI Service is central to this transformation, empowering businesses to innovate and grow. Leveraging GenAI’s adaptability, BFSI (Banking, Financial Services, and Insurance sector) can bolster defenses against threats, ensuring resilience and innovation. GenAI emerges as a beacon of progress, guiding BFSI toward a future of security and prosperity.
Generative AI (GenAI) Impact:
- Generates bespoke content, continuously evolving
- Extends impact to healthcare, retail, and pharmaceuticals
- Predicted annual contribution to the global economy: $2.6 trillion to $4.4 trillion
A Catalyst for Unprecedented Productivity
The integration of Artificial Intelligence (AI) stands as a catalyst for fostering unparalleled levels of productivity and efficiency across industries. From manufacturing to healthcare, the transformative influence of AI has left virtually no sector untouched. According to a comprehensive analysis by Allied Market Research, the global artificial intelligence in the BFSI market surged to a valuation of $22.5 billion in 2022, with projections soaring to a staggering $368.6 billion by 2032, boasting a formidable CAGR of 32.5%. Within this landscape of exponential growth, the banking sector emerges as a primary beneficiary, poised to unlock an annual potential ranging from $200 billion to $340 billion, equivalent to 9% to 15% of operating profits, largely attributed to amplified productivity.
Global AI Market in BFSI:
- Valued at $22.5 billion in 2022
- Projected to reach $368.6 billion by 2032
- CAGR of 32.5%
- Banking sector expected to unlock annual potential of $200 billion to $340 billion, equivalent to 9% to 15% of operating profits
Navigating the Era of Big Data
Since the 20th century, Artificial Intelligence (AI) has fascinated minds, from iconic characters like the Tin Man to Alan Turing’s groundbreaking thesis. Today, AI embodies the aspiration for machines to emulate human cognition. With advancements in data analysis, smart systems optimize networks and augment productivity. In the era of big data, AI’s transformative influence spans technology, finance, marketing, and entertainment, marking an epoch of unparalleled advancement.
The global artificial intelligence market reached a remarkable valuation of USD 136.55 billion in 2022, with a projected CAGR of 37.3% from 2023 to 2030, according to Grand View Research. Even our smartphones now harness AI capabilities, adept at executing commands seamlessly. Breakthroughs like ChatGPT and Bard showcase AI’s potential in tackling everyday challenges. Zippia reports that over a quarter of enterprises have integrated AI systems, with 91% of leading companies investing in AI R&D. These advancements promise transformative changes, driving cost efficiencies and delivering tailored user experiences.
Artificial intelligence (AI) is transforming global manufacturing, offering vast opportunities alongside challenges. Automated machines from the third industrial revolution boosted production rates, but AI integration promises even greater gains in efficiency and quality.
PwC projects AI to contribute up to 26% to local economies by 2030, with a potential global GDP growth of 14% ($15.7 trillion). China and North America are expected to see the most significant benefits, totaling $10.7 trillion.
