New Report Assesses Generative AI’s Potential Benefits For EU Economy

In an announcement today, Google revealed findings from a report by Implement Consulting Group, which estimates that generative AI could add between €1.2 trillion and €1.4 trillion to the European Union’s GDP over the next decade.

This potential growth equates to an annual increase of approximately 8%. The report highlights that generative AI can boost productivity across multiple sectors, helping Europe enhance its competitiveness in the global economy.

The study emphasizes the necessity for the EU to foster innovation, invest in skills development, and establish clear regulatory frameworks to fully harness the benefits of generative AI.

In this context, the European Union’s Artificial Intelligence Act, which came into force in early August, is meant to mark a significant advancement in the regulation of AI technologies within the EU.

With Europe currently lagging behind the United States in economic growth, leveraging AI technology could provide a crucial opportunity for advancement.

Key findings from the Implement Consulting Group study indicate that the economic benefits of generative AI stem from three primary sources.

These include increased productivity from collaboration with AI, the automation of routine tasks that frees up time for more strategic activities, and the reallocation of resources toward value-creating endeavors.

Job implications are also noteworthy. The report suggests that 61% of jobs in the EU will likely involve interaction with generative AI, while 32% are expected to remain unaffected.

The report states that only 7% of jobs face a high risk of automation, although new roles in the AI-driven economy are anticipated to replace those lost. The report suggest that this shift parallels historical transitions seen with the advent of technologies such as commercial aviation and the internet.

Additionally, the study reports that 74% of workers in European countries recognize the productivity-enhancing effects of generative AI, with 43% expecting a positive impact on their jobs.

The report underscores that generative AI could transform various sectors, particularly in services, which represent 80% of its economic potential.

Despite the EU’s strengths in foundational drivers for AI adoption, there remains an urgent need for enhanced innovation, talent development, research, and commercialization efforts.