Generative AI could boost the global economy by up to $4.4 trillion annually: McKinsey report

According to a new report by McKinsey, generative artificial intelligence (AI) could add between $2.6 trillion to $4.4 trillion annually to the global economy. The annual economic impact of GenAI is close to the equivalent of adding a new country to the Earth, with a GDP of $3.1 trillion. The upward revision of economic impact estimates is due to the fast adoption and strong potential use cases for GenAI tools. McKinsey analysts examined 850 occupations and over 2,100 detailed work activities in 47 countries, covering over 80% of the global workforce. The report found that current generative AI and other technologies have the potential to automate work activities that absorb 60 to 70% of employees’ time. This can lead to an addition of 0.2 to 3.3 percentage points annually to productivity growth to the entire global economy. However, worker transitions and other risks need to be managed to ensure that GenAI contributes substantively to economic growth and supports a more sustainable, inclusive world. McKinsey found that customer operations, marketing and sales, software engineering, and research and development will likely account for 75% of the value added by GenAI.