Generative AI Could Boost Global Economy by $4.4 Trillion per Year, Finds McKinsey Report

A new report from McKinsey has claimed that generative AI could potentially add $4.4 trillion to the global economy each year. The report suggests that generative AI could be used across numerous industries, including banking, retail, high-tech, and pharmaceuticals and medical products. The technology could add $200 billion to $340 billion in value to the banking industry alone, and $240 to $390 billion in value in retail. Overall, McKinsey’s report indicates that around 75% of the technology’s value will be seen across four areas: customer operations, marketing and sales, software engineering, and research and development. The report also reveals that generative AI is predicted to become a $1.3 trillion market by 2032, up from $40 billion in 2022, with the industry predicted to grow at a rate of around 42% each year. Generative AI’s ability to improve natural language processing could also transform worker productivity, automating around 60%-70% of tasks that currently absorb employees’ time.