Turbo-charging productivity in Asia: the economic benefits of generative AI

This year, Microsoft commissioned global tech advisory firm Access Partnership, working alongside local partners including the Analytics Association of the Philippines, the Federation of Indian Chambers of Commerce & Industry (FICCI), and the Center for Global Communications (GLOCOM) in Japan, to conduct country-level research on the potential economic impact of generative AI across Asia. The research estimates a potential boost to productive capacity of US$621 billion in India, US$1.1 trillion in Japan, and US$79.3 billion in the Philippines alone, with studies ongoing in Malaysia, Indonesia and South Korea. These country findings are consistent with other global studies--for instance, a recent report by McKinsey estimates generative AI could add up to US$4.4 trillion a year to the global economy. The potential economic growth is so large because generative AI has implications for most types of work: its impact can be thought of as comparable to that of digitalization in general, rather than that of a specific product. In particular, this huge injection of productivity will arise from three channels--generative AI's potential to unleash creativity, accelerate discovery, and enhance efficiency.