A recent research report by Accenture and Frontier Economics makes interesting reading. In short, by 2035 artificial intelligence (AI) technologies have the potential to increase productivity by 40% or more and increase economic growth by 1.7% pa across 16 industries.
Quite staggering. To put this into context, the UK economy has the potential to increase growth from 2.5% to 3.9% pa by then.
As I have commented before, AI in M&A is beginning to feature more heavily in our conversations with acquirers and investors. Those companies with genuine capability will be highly prized.
The research compares the economic growth rates of 16 industries, projecting the impact of Artifical Intelligence on global economic growth through 2035. Using Gross Value Added (GVA) as a close approximation of GDP, the study found that the more integrated AI is into economic processes, the greater potential for economic growth. AI has the potential to increase economic growth rates by a weighted average of 1.7% across all industries through 2035. Information and Communication (4.8%), Manufacturing (4.4%) and Financial Services (4.3%) are the three sectors that will see the highest annual GVA growth rates driven by AI in 2035. The bottom line is that AI has the potential to boost profitability an average of 38% by 2035 and lead to an economic boost of $14T across 16 industries in 12 economies by 2035.