The scope and potential economic impact of artificial intelligence

Frontier contributes to Accenture report which finds significant potential economic benefits of Artificial Intelligence. Accenture has today published a report analysing the scope and potential economic impact of artificial intelligence (AI) and advanced automation across 12 major economies. Frontier (Europe) advised Accenture on economic impacts of AI, providing modelling and guidance on measures of output and productivity. The report identifies AI as “multiple technologies that can be combined in different ways” to sense, comprehend, and act. Each of these three capabilities are underpinned by the ability to learn from experience and adapt over time.

The report’s key conclusion is that artificial intelligence could have a significant impact on the world economy, doubling economic growth rates in adopting countries by 2035. However, achieving this growth requires  both that a country invests in the new technology and has the ‘absorptive capacity’ to benefit from the investment through increased productivity. This capacity depends on a number of conditions being in place, including the adequacy of economic and social institutions, a solid scientific research base, organisational flexibility, and healthy attitudes towards data security and privacy.

Based on the range of factors the economic modelling took into account, the report finds that Sweden, Finland, United States and Japan will potentially benefit the most from AI, with Germany, Austria, Netherlands, and United Kingdom following behind. In these countries, AI has the ability to boost annual labour productivity by at least 25% by 2035 if adoption of these technologies takes hold firmly.

Frontier regularly advises private and public sector clients on issues of technology, innovation, economic growth, and industrial policy.

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