Global GDP will be 14 percent higher in 2030 as a result of AI (artificial intelligence), with China and North America seeing the greatest economic gains, according to a new research report released by consultancy firm PriceWaterhouse Coopers (PwC).
AI will contribute 15.7 trillion U.S. dollars to the global economy in 2030, PwC said in the report.
Labor productivity improvements are expected to account for over half of all economic gains from AI over the period 2016 to 2030, while increased consumer demand resulting from AI-enabled product enhancements will account for the rest.
The greatest economic gains from AI will be in China, with 26 percent boost to GDP in 2030, and North America, with 14.5 percent boost, equivalent to a total of 10.7 trillion dollars and accounting for almost 70 percent of the global economic impact, according to the report.
North America will experience productivity gains faster than China initially, driven by its readiness for AI and the high fraction of jobs that are susceptible to replacement by more-productive technologies.
However, China will begin to pull ahead of the U.S.' AI productivity gains in ten years, after it catches up on a slower build up to the technology and expertise needed, according to the report.
Europe and Developed Asia will also experience significant economic gains from AI, but developing countries will experience more modest increases due to the much lower rates of adoption of AI technologies expected, according to the report.
"The analysis highlights how the value of AI enhancing and augmenting what enterprises can do is large, if not larger than automation," said Anand Rao, Global Leader of Artificial Intelligence at PwC.