AI can add $814bn to the UK economy by 2035.

Artificial intelligence (AI) could add an additional $814bn to the UK economy by 2035, increasing the annual growth rate of gross value added (GVA) to 3.9% from 2.5%.

The research carried out by Accenture and Frontier Economics expects AI to double annual economic growth rate in 12 developed economies and increase labor productivity by about 40% by 2035.

The research found that the US will have the largest economic benefits with AI, as its annual growth rate is set to increase to 4.6% by 2035 from 2.6%, translating to an additional $8.3 trillion in GVA.

Japan’s annual rate of GVA growth is expected to more than triple by 2035, and the growth rates are anticipated to double in Finland, Sweden, the Netherlands, Germany and Austria.

Accenture said the potential to significantly increase the labor productivity in developed economies will be driven by new artificial intelligent technologies that allow people to make more efficient use of their time and carry out what humans do best such as create, imagine and innovate new ideas.

The increase in productivity will dramatically reduce the number of years needed for the 12 countries to double in size, the company noted.

Accenture chief technology officer Paul Daugherty said: “AI is poised to transform business in ways we’ve not seen since the impact of computer technology in the late 20th century.

AI will shift focus from coordination and control to judgment work, such as strategy and innovation, collaboration, people and community.
AI will shift focus from coordination and control to judgment work, such as strategy and innovation, collaboration, people and community. Source Accenture.

 

“The combinatorial effect of AI, cloud, sophisticated analytics and other technologies is already starting to change how work is done by humans and computers, and how organizations interact with consumers in startling ways.

“Our research demonstrates that as AI matures, it can propel economic growth and potentially serve as a powerful remedy for stagnant productivity and labor shortages of recent decades.”

Accenture recommended to prepare the next generation, encourage AI-powered regulation, advocate a code of ethics for AI and address the redistribution effects to make AI as a new factor of production.

Accenture Institute for High Performance managing director of economic research Mark Purdy said: “To fulfill the promise of AI, relevant stakeholders must be thoroughly prepared – intellectually, technologically, politically, ethically and socially – to address the benefits and challenges that can arise as artificial intelligence becomes more integrated in our daily lives.”