AI to contribute $4.4 trillion annually to global economy: McKinsey

Updated : Jun 16, 2023 12:19
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Editorji News Desk

The world is seeing a rapid growth in the Artificial Intelligence sector especially, the generative AI field has seen major breakthroughs. A new report by McKinsey's research arm has suggested that the AI sector will offer economic benefits of $2.6 trillion to $4.4 trillion per annum. This is equivalent to about 4.4% of the entire world's economy output. To put it in perspective, this forecast surpasses UK GDP of $3.1 trillion in 2021.

The research used 63 use cases across 850 different fields where the technology used prompts to create texts or images. The research found that the productivity could increase in the range between 0.1% to 0.6% over the next 20 years depending on how the technology can be adopted and implemented. 

The report mentions that Banking, high tech and life science sectors are set to gain the most via generative AI. The report estimates that the retail and consumer packaged goods industry could experience a significant boost of $400 billion to $660 billion a year while Banking Sector can witness a yearly economic growth of $200 billion to $340 billion. 

Meanwhile, the report also warns that the growth in generative AI will replace about 60% to 70% of tasks that are currently handled by humans.

 

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