Global economic growth could double through AI application

Artificial intelligence (AI) has the potential to double annual economic growth rates worldwide by 2035, according to a new report by Accenture.

 

Friday 23

Global economic growth could double through AI application

It reveals that the technology could provide $14trn (£11trn) in additional gross value added (GVA) across the US, UK, Finland, Sweden, Germany, Austria, France, Japan, Belgium, Spain, Italy, and the Netherlands.

 

These countries together generate more than 50% of the world’s economic output, while it was also found that businesses that successfully apply AI could see their profitability increase by an average of 38% by 2035.

 

“AI will revolutionise how businesses compete and grow, representing an entirely new factor of production that can ignite corporate profitability,” Accenture chief technology and innovation officer, Paul Daugherty, said.

 

“It’s critical that businesses act now to develop strategies around AI that put people at the center, and develop responsible AI systems that are aligned to moral and ethical values, empowering people to imagine, create and innovate.”

 

How AI has the potential to impact the growth rates (%) of the 12 countries analysed is shown below:

How AI has the potential to impact the growth rates

Source: Accenture

 

Of the industries studied, information and communication, manufacturing, and financial services would benefit most by applying AI, with annual GVA growth rates increased to 4.8%, 4.4%, and 4.3% respectively by 2035.

 

In labour-intensive sectors, AI can augment the human workforce, enabling people to become more productive, while in capital-intensive industries, AI powered machines could eliminate faults and idle equipment, the report says.

 

It suggests that companies should adopt a ‘human-centric’ approach, and take bold and responsible steps to applying the technology within businesses and organisations, in preparation for the AI transformation.

 

“By exploring the macroeconomic impact of AI as it matures over the next few decades, it’s clear that organisations in every industry have tremendous opportunities to apply AI to unleash remarkable benefits,” Accenture Research managing director, Mark Purdy, said.

 

“By optimising processes with intelligent automation, augmenting human labor and physical capital, and propelling new innovations, AI can drive dramatic and long lasting profitability and economic growth.”

 

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