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PwC expects AI to significantly boost GDP by 2030

Retail

Global GDP will be 14% higher in 2030 as a result of artificial intelligence (AI), the equivalent of an additional USD 15.7 trillion; a Hungarian expert warns that those who fail to apply AI could fall behind their competition, according to a press statement sent to the Budapest Business Journal by PwC Hungary.

Labor productivity improvements are expected to account for more than half of all economic gains from AI over the period between now and 2030, according to a detailed analysis on the business impact of AI by PwC. Increased consumer demand resulting from AI-enabled product enhancements will account for the rest, PwC expects.

Developing countries will experience more modest increases (less than 6% of GDP), as compared to the greatest economic gains from AI in China (a 26% boost to GDP in 2030) and North America (a 14.5% boost), due the much lower rates of adoption of AI technologies expected in the likes of Latin America and Africa.

“The analysis highlights how the value of AI enhancing and augmenting what enterprises can do is large, if not larger than automation,” comments Antal Kerekes, PwC Hungary’s Technology advisory partner. “It demonstrates how big a game changer AI is likely to be – transforming our lives as individuals, enterprises and as a society,” he adds.

Overall, the biggest absolute sector gains will be in retail, financial services, and healthcare as AI increases productivity, product value and consumption. By 2030, an additional USD 9 tln of GDP is thought likely to be added from product enhancements and shifts in consumer demand and behaviour, as AI driven consumption gains overtake those of productivity.

“No sector or business is in any way immune from the impact of AI. The impact on productivity alone could be competitively transformational and even disruptive,” said Gábor Riba, PwC Hungary’s senior manager. “Businesses that fail to apply AI, could quickly find themselves being undercut on turnaround times as well as costs and experience, and may lose a significant amount of their market share as a result. The big challenge is how to secure the right talent, technology and access to data to make the most of this opportunity.”

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