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

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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.

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Frequently Asked Questions (FAQs) Related to the Above News

What is the new report from McKinsey about?

The new report from McKinsey is about generative AI and its potential to add $4.4 trillion to the global economy each year.

In which industries could generative AI be used?

Generative AI could be used across numerous industries such as banking, retail, high-tech, and pharmaceuticals and medical products.

What impact could generative AI have on the banking industry?

Generative AI could add $200 billion to $340 billion in value to the banking industry alone.

What about the retail industry?

The technology could add $240 to $390 billion in value in retail.

In which areas will 75% of the technology's value be seen?

75% of the technology's value will be seen across four areas: customer operations, marketing and sales, software engineering, and research and development.

What is the predicted size of the generative AI market by 2032?

The predicted size of the generative AI market by 2032 is $1.3 trillion, up from $40 billion in 2022.

At what rate is the industry predicted to grow each year?

The industry is predicted to grow at a rate of around 42% each year.

Could generative AI improve worker productivity?

Yes, it could. 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.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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