The news: A new report by McKinsey Global Institute suggests that generative AI could add up to $4.4T annually to the global economy, representing around 4.4% of the total economic output. By comparison, the U.K.'s entire GDP in 2021 was $3.1T. The study predicts that generative AI, including chatbots like ChatGPT, could automate 60% to 70% of workers' time, leading to the automation of half of all work between 2030 and 2060. What the numbers say: McKinsey estimates that generative AI could add $2.6T to $4.4T in value across multiple industries. Greater adoption of the technology could boost productivity by 0.1% to 0.6% over the next two decades. Banking, high tech, and life sciences were among the industries that could see the biggest impacts from gen AI as a percentage of their overall revenues. Why it matters: Generative AI's impact on the labor force, especially among high-wage knowledge workers, challenges prior notions of automation. Unlike past technologies that affected lower-wage jobs, generative AI targets cognitive tasks, making higher-wage roles more vulnerable, according to McKinsey. Developed economies will experience faster automation, primarily impacting white-collar work. As the report predicts a reorganization of labor structures, McKinsey stresses the need to support workers in acquiring new skills and transitioning to different jobs.
McKinsey analyzed 850 occupations and 2,100 work activities across 47 countries. |
