Early adoption of artificial intelligence is predicted to significantly boost the US economy, despite potential job displacement. Experts estimate AI could add trillions to the GDP in the coming years through increased productivity and innovation. Goldman Sachs predicts that AI-driven productivity could add $7 trillion to global GDP. McKinsey suggests AI innovation could unlock between $11-$17 trillion in increased total global economic value for business.
However, the impact of AI on the economy largely depends on the extent of its use. While AI is expected to automate routine tasks and enhance productivity across various sectors, concerns remain about job displacement, equity, and governance. Some studies suggest that AI's impact on labour markets will be consistent with historical technological shifts, creating new jobs while displacing others. The adoption of AI is running on the high end of expectations, suggesting some upside risk to forecasts for US growth.
Overall, coordinated efforts across the private sector, government, and academia will be required to ensure effective adaptation and maximise the benefits of AI while mitigating potential risks.
