$7 Trillion boost in GDP with Artificial Intelligence

Jul 6, 2017 | 5904 Views

A new report by PwC predicts a 14% growth in global GDP by 2030(equivalent to $15.7 trillion), supporting about 10% GDP growth in UK (equivalent to $232 billion), with Artificial Intelligence as the catalyst.

Major gains will be made largely through an increasing consumer demand and their favorability of AI-enabled resources leading a rapid personalization of products and their affordability with time. This makes AI the "biggest commercial opportunity" in the economy today.

However, it may directly impact the number of jobs as per Jonathan Gillham, economist at PwC who emphasizes "Much of the focus on AI to date has been on the impact that increased automation of tasks will have on jobs".

"While we expect that the nature of jobs will change and that some will be susceptible to automation, our research shows that the boost to UK GDP that AI-driven products and services will bring will also generate significant offsetting job gains, as well as boosting average real wage levels," he says.
Here is a chart of expected GDP growth over years:

The AI sector is only becoming more competitive and the research shows gains in productivity as new products are developed and rolled out in the market.
The greatest economic benefits of AI are predicted to be felt in China, which could see a boost to its GDP of up to 26% by 2030 affecting sectors of retail, financial services, and healthcare.

Not just China, growth is forecasted in other countries stretching from $0.5 trillion to a whopping $7 trillion.

Know more on how AI will impact your business and GDP growth, read here

Source: HOB Team