Artificial Intelligence (AI) is set to provide a major boost to the UK’s GDP over the next decade, new research has claimed.
A new report by PwC says that by 2030, the country’s GDP could see a boost of around 10 per cent thanks to AI - equivalent to around £232 billion.
For PwC, this makes AI the biggest commercial opportunity today.
In its biggest part, these gains will come from an increased consumer demand, which will result in a greater choice of products, more personalisation and lower prices. To a somewhat lesser extent, improvement in productivity will also drive GDP gains.
“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,” commented Jonathan Gillham, economist at PwC.
“AI will make everyday products better, more personalised and cheaper over the longer term, which we predict will fuel increased demand. Automating the more mundane and repetitive aspects of people’s jobs will also increase the UK’s productivity and boost real wages.”
Labour productivity, even though it will drive GDP gains to a lesser extent, will be felt first. Consumption-led benefits of products with AI enhancements will come through later. When that happens, competition will become stiffer, driving more value, and consequently driving more spending.
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