Artificial intelligence (AI) could double annual economic growth rates and boost labour productivity by up to 40% by 2035, according to Accenture and Frontier Economics.
The new Why Artificial Intelligence is the Future of Growth report from Accenture Institute for High Performance and Frontier Economics found that AI will fundamentally change the way work is done, making employees more efficient.
According to the report, AI will yield the highest economic benefits in the US, increasing its annual growth rate from 2.6% to 4.6% by 2035, translating to an additional US$8.3 trillion in gross value added (GVA). In the UK, AI could add an additional US$814 billion to the economy by 2035, increasing annual GVA rates from 2.5% to 3.9%. Japan could potentially more than triple its yearly GVA growth rate, while Finland, Sweden, the Netherlands, Germany and Austria could see their growth rates double.
“AI is poised to transform business in ways we’ve not seen since the impact of computer technology in the late 20th century,” said Paul Daugherty, chief technology officer at Accenture. “The combinatorial effect of AI, cloud, sophisticated analytics and other technologies is already starting to change how work is done by humans and computers, and how organisations interact with consumers in startling ways. Our research demonstrates that as AI matures, it can propel economic growth and potentially serve as a powerful remedy for stagnant productivity and labour shortages of recent decades.”
To reap the benefits of AI, Accenture recommends that organisations re-evaluate the type of knowledge and skills required for the future and find ways to integrate human and machines so they can successfully co-exist in a two-way learning relationship. They should also encourage AI-powered regulation and create a code of ethics and best practices for using the technology. Meanwhile, policymakers should highlight how AI can result in tangible benefits and pre-emptively address any perceived downsides of AI.
“AI heralds dramatic potential for growth for both the economy and for humans,” said Mark Purdy, managing director of Economic Research at Accenture Institute for High Performance. “Our research strongly shows that AI can unleash remarkable benefits across countries, countering slow economic growth and lagging productivity. To fulfil the promise of AI, relevant stakeholders must be thoroughly prepared – intellectually, technologically, politically, ethically and socially – to address the benefits and challenges that can arise as artificial intelligence becomes more integrated in our daily lives.”
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