Harnessing AI and Digital Twins to Bridge the Global Productivity Gap and Drive Sustainable Growth
At the World Economic Forum (WEF) annual meeting, a new report highlighted a significant shift in how global industries are evolving with the help of emerging technologies like artificial intelligence (AI) and digital twins. By 2027, approximately sixty percent of global manufacturers are expected to incorporate generative AI into their operations. This move will help speed up the acquisition of expertise, especially in industries facing a growing shortage of skilled labor.
The core idea behind this integration of AI is to preserve the expertise of retiring employees and pass it on to the new generation, ensuring that valuable knowledge is not lost. When combined with digital twins — virtual representations of physical assets or processes — the impact of AI becomes even more powerful. This union enables a range of advancements from enhanced performance monitoring and optimization to creating realistic simulations and generating precise predictions. Together, AI and digital twins have the potential to revolutionize industries by improving operational efficiency and fostering smarter decision-making.
One clear example of this transformation can be seen in the IT sector. Historically, one IT administrator might have serviced around 1,000 tickets. However, thanks to digitalization, the same administrator can now handle up to 100,000 tickets. Importantly, this shift doesn’t eliminate IT jobs but rather increases productivity, demonstrating that digital tools can augment human capacity rather than replace it.
This pattern is expected to repeat across multiple industries as digital technologies become more widely adopted. According to WEF, when these technologies are combined with sector-specific knowledge, they can unlock vast new possibilities, making cutting-edge solutions more accessible and addressing crucial challenges such as equitable growth and sustainability. The ability to scale such technologies holds the potential to not only improve productivity but also to help tackle some of the world’s most pressing issues.
AI’s strength lies in its capacity to turn raw data into actionable insights. When paired with digital twins, AI enables the collection, analysis, and optimization of data to eliminate inefficiencies and make smarter decisions. For example, in highly automated manufacturing environments, machines generate vast amounts of data—equivalent to half a million movies every month. Historically, much of this data has gone underutilized, but with the introduction of AI, manufacturers are able to unlock valuable insights. AI helps to identify patterns, spot inefficiencies, predict outcomes, and facilitate better decision-making. In fact, in quality control, the integration of AI and digital twins has reduced efforts by 95%.
While the use of AI and digital twins is particularly transformative in manufacturing, the potential of these technologies extends far beyond factories. In healthcare, AI can assist in interpreting complex medical images, such as MRI scans and X-rays, improving diagnostic accuracy and efficiency. In agriculture, robots equipped with AI can help identify ripe fruits for harvesting, streamlining processes in the field. In the building sector, AI can be used to analyze data from building materials and designs to enhance energy efficiency, reduce costs, and lower carbon emissions.
To unlock the full potential of these technologies and address the global productivity gap, the key lies in developing a comprehensive digital strategy. By adopting technologies like AI and digital twins across industries, we can drive sustainable growth, foster innovation, and improve efficiency. As WEF emphasizes, how we embrace and implement these tools today will lay the foundation for future generations, creating a landscape where technology not only boosts productivity but also tackles critical global challenges such as sustainability and equitable development.
