Artificial intelligence (AI) can transform the productivity and GDP potential of the UK landscape. But, we need to invest in the different types of AI technology to make that happen. Our research shows that the main contributor to the UK's economic gains between 2017 and 2030 will come from consumer product enhancements stimulating consumer demand (8.4%). This is because AI will drive a greater choice of products, with increased personalisation and make those products more affordable over time. Labour productivity improvements will also drive GDP gains as firms seek to "augment" the productivity of their labour force with AI technologies and to automate some tasks and roles.
Research from PwC has shown that the majority of the UK's economic gains over the period to 2030 will come from increasing consumer demand. AI will drive this, with a greater choice of products, increased personalisation of those products and making them more affordable over time. Labour productivity improvements will also drive GDP gains, but to a lesser extent. Jonathan Gillham, economist at PwC, said "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."
According to the report, global GDP could be up to 14 percent higher in 2030 as a result of AI. This is the equivalent of an additional USD 15.7 trillion – making it the biggest commercial opportunity in today's fast changing economy. Of this, USD 6.6 trillion is likely to come from increased productivity and USD 9.1 trillion from consumption side effects, the report shows. Accordingly, growth will be driven by three factors: productivity gains from businesses automating processes (including use of robots and autonomous vehicles); productivity gains from businesses augmenting their existing labour force with AI technologies (assisted and augmented intelligence) and increased consumer demand resulting from the availability of personalised and/or higher-quality AI-enhanced products and services. Over the past decade, almost all aspects of how we work and how we live – from retail to manufacturing to healthcare – have become increasingly digitised, the report notes.
Global GDP will be 14% higher in 2030 as a result of AI – the equivalent of an additional $15.7 trillion. This makes it the biggest commercial opportunity in today's fast changing economy according to new research by PwC. Drawing on a detailed analysis of the business impact of AI Sizing the prize outlines the economies that are set to gain the most from AI. AI will contribute $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. Labour productivity improvements are expected to account for over half of all economic gains from AI over the period 2016-2030. Increased consumer demand resulting from AI-enabled product enhancements will account for the rest.