MsKinsey: Generative AI can Contribute Trillions of Dollars to the Global Economy
The impact of generative AI is not limited to a single sector but spans across various industries, including banking, high tech, and life sciences. A recent report published by McKinsey & Company suggests that generative AI could add the equivalent of $2.6 trillion to $4.4 trillion annually across the 63 use cases analyzed. This would increase the impact of all artificial intelligence by 15 to 40 percent.
The report identifies four key areas where generative AI could deliver significant value: Customer operations, marketing and sales, software engineering, and R&D. These areas could account for about 75 percent of the value that generative AI use cases could deliver.
Generative AI also has the potential to change the anatomy of work. It could automate work activities that currently take up 60 to 70 percent of employees’ time. This increased ability to understand natural language could have a more significant impact on knowledge work associated with occupations that have higher wages and educational requirements than on other types of work.
The report also highlights that generative AI could enable labor productivity growth of 0.1 to 0.6 percent annually through 2040, depending on the rate of technology adoption and redeployment of worker time into other activities. However, this will require investments to support workers as they shift work activities or change jobs. If worker transitions and other risks can be managed, generative AI could contribute substantively to economic growth and support a more sustainable, inclusive world.
The potential of generative AI to transform industries and boost productivity has significant implications for sustainability and sustainable development. The automation of work activities could lead to more efficient use of resources, reducing waste and promoting sustainability. Moreover, the productivity gains could free up resources for investment in sustainable practices and technologies.
The potential for generative AI to contribute to economic growth could also support sustainable development goals. Economic growth is a key enabler of improvements in living standards, education, health, and other aspects of human development. By boosting productivity and economic growth, generative AI could help to provide the resources needed to address global challenges such as poverty, inequality, and climate change.
However, the transition to a more AI-driven economy will also pose challenges. It will be important to ensure that the benefits of AI are widely shared and that workers displaced by automation are supported in transitioning to new roles. This will require investment in education and training, as well as policies to promote inclusivity and equality.
As this technology continues to evolve, it will be crucial to harness its potential in a way that supports sustainability and sustainable development.
