“The U.S. and China, already the world’s two largest economies, are likely to experience the greatest economic gains from AI,” Israel says. Together, China and North America will account for about 70% of the global economic impact of AI by 2030. In fact, PwC estimates that AI will boost the GDP of China by a little over 26% by 2030, and of North America by 14.5%.4
Among sectors and industries, information technology is a clear winner, with software development, semiconductors, data centers, cybersecurity, search engines and more deriving benefits. “Beyond software, major infrastructure upgrades will be needed to support the massive flow of information,” Hyzy says. Industries ranging from education and healthcare to aerospace and the law will also be transformed, Israel adds. In pharmaceuticals, “AI can help screen new drug compounds to predict their success rates, or identify the right candidates for drug trials,” he says. In the law, “AI can write legal documents and summarize cases.”
Is AI likely to disrupt the labor market?
As with any major technological shift, the onset of AI is bound to shake up some professions and may eliminate some occupations. In the past, such shifts have mainly eliminated manual jobs, such as production-line manufacturing. What’s different this time is that AI is capable of handling many tasks associated with higher end professions. “But predictions of wholesale job losses are likely overblown,” Hyzy believes. “Advancements don’t just eliminate some jobs; they create whole new industries, businesses, skill sets and careers.”
What other potential risks does AI pose?