12 bit = 4,096 level of gradation (tones)
14 bit = 16,384 levels of gradations (tones)
And here are a few quotes from Bob Atkins in response to the same question on a different forum:
"Of course you have to remember that Jpegs are 8-bit by definition and only contain information on 256 intensity levels for each color.
You probably can't detect more then 256 intensity levels by eye anyway!
Do 14-bits give you more than 12-bits? On some images you may see a difference, especially in shadow detail after suitable processing of the image and conversion to a JPEG. Other images may look identical.
Bottom line is that it's better to have more bits, but there is a limit to how many you need, or how many are useful given a certain level of sensor noise. Like in most things, it's a case of diminishing returns. 8 is good, 10 is better, 12 is a bit better than that, 14 is a little bit better than 12 bit, 16 bit might be very slightly better than 14 bit in some special situations, 18 bit probably currently offers no real advantage over 16 bit."
"Yes, if you get the exposure wrong and have to do a lot of manipulation, more bits help, as long as they are bits which contain information, not just noise. 12 good bits are certainly better than 8 and 4 bits would be horrible. However that doesn't mean you'd get as much improvement again by adding 4 more bits and going to 16."