Thursday 6th July, 2017
According to new research by PwC, GDP could be around 10% higher in 2030 as a result of Artificial Intelligence (AI) - the equivalent of an additional £232 billion.
The research shows that the majority of the UK’s economic gains over the period to 2030 will come from increasing consumer demand resulting from AI driving a greater choice of products, increased personalisation of those products and making them more affordable over time.
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."
The analysis underlines how the scale of the AI opportunity needs to be underpinned by both more robust governance and new operating models to realise its full potential. PwC’s Responsible AI report warns that effective controls need to be built into the design and implementation phase to ensure AI’s positive potential is secured.
Euan Cameron, UK Artificial Intelligence leader at PwC, said: “The potential size of the AI prize is huge and our research shows it has the potential to transform the productivity and GDP potential of the UK’s economy. But in order for the UK to realise the potential gains from AI we need to ensure that AI systems are adopted in a responsible way and that every part of society can reap the benefits."
“No sector or business is immune from the impact of AI. That’s why it’s so important for the UK to place itself at the forefront of the AI revolution and create the right environment for existing and new businesses to innovate and make the most of the product, productivity and wage benefits that this technology can bring.”
Overall, the biggest sector gains globally will be in retail, financial services, and healthcare as AI increases productivity, product value and consumption.