Optimistic forecast on how GenAI can boost EU’s growth

Author Moonshot.news

Published on: 03/10/2024

Generative AI could add €1.2-1.4 trillion to the EU’s GDP in ten years – the equivalent to an annual growth rate of 8%. To capture the next wave of AI benefits across society, the EU needs to promote innovation, invest in skills and ensure clear rules, according to a study by tech consultancy Implement Consulting Group that partly echoes former EU central banker Mario Draghi’s recent report that is stressing the need for investments to secure EU growth. The study was commissioned by Google which is investing heavily in AI.

“However, capturing the full potential of generative AI depends on a number of drivers of AI adoption – from a robust operating environment to the availability of skilled AI practitioners”, the study says.

From the report:

• Generative AI could boost the EU’s GDP by EUR 1.2-1.4 trillion, amounting to +8% GDP over ten years if widespread adoption is achieved.
• The gains come from three sources, including productivity increases from people working with generative AI, freed-up time from generative AI’s automation potential and the re-employment of time for other value-creating activities.
• In the EU, 61% of jobs are expected to work together with generative AI, 32% of jobs are likely to remain unaffected by generative AI, 7% of jobs are deemed highly exposed to generative AI leading to job closures. New jobs in the AI-powered economy are expected to replace those lost due to automation, resulting in unchanged employment levels.
• Generative AI can boost productivity across sectors by augmenting and improving human capabilities. In contrast to past automation, such as robots, generative AI can boost productivity in services, where 80% of its economic potential lies.
• The EU performs well on the early foundational drivers of AI adoption that ensure a safe and reliable AI-ready environment but lags behind globally on AI innovation drivers (talent, research, development and commercialisation). Present gaps indicate that the EU risks falling behind the next wave of AI and needs to ramp up its efforts to remain competitive.