Data suggests that increases in capital investment and labor are no longer capable of maintaining continued prosperity in many advanced economies. Fortunately, a new growth driver is at hand. Artificial intelligence (AI) technologies that sense, comprehend and act—while learning and adapting their behaviors over time—don’t just enhance productivity by enabling more efficient usage of capital and labor. AI represents a new factor of production altogether, one that fuels a new virtual workforce, complements existing physical capital and the skills of the human workforce, and ultimately drives innovation in the economy.
Accenture, in conjunction with Frontier Economics, analyzed the potential effect of AI on 12 economies that account for more than half of the world’s economic output. The result? By 2035 (when AI is expected to be pervasive), these countries could double their growth rates based on gross value added (GVA), a close approximation of GDP. AI promotes growth in three key ways:
Intelligent automation of the workforce
Augmentation of labor and physical capital
Total factor productivity growth that comes from innovations and technological change in the economy
For a clearer view of the expected impact of AI on individual nations and the channels that should be leveraged to drive growth, select the country name in the chart below.