A recent study conducted by Implement Consulting Group and commissioned by Google, has revealed the significant economic potential of artificial intelligence (AI) for the European Union. The report estimates that generative AI could contribute between €1.2 and €1.4 trillion to the EU's GDP within ten years, equivalent to an annual growth rate of 8%.
Matt Brittin, President of Google Europe, Middle East and Africa, highlighted the importance of this research in the context of Europe's declining global economic influence. "Europe's competitiveness has nosedived over the past decades," Brittin stated, citing that the EU's share of global GDP has shrunk from over a quarter in 1980 to just 17% today.
The report comes at a crucial time, as a separate study by former European Central Bank President Mario Draghi indicates that US productivity has surpassed the EU's by 20% in 2022. This productivity gap is largely attributed to slower technological development, innovation, and adoption in Europe.
Beyond economic metrics, the study emphasises AI's potential to enhance workforce productivity, and create sustainable jobs. According to the report, 74% of workers in European countries perceive productivity-enhancing effects of generative AI, while 43% expect AI to positively impact their jobs. The research estimates that the majority (61%) of jobs will be augmented by generative AI, with only around 7% facing a long-term transition to automation.
In response to these findings, Google has released an "AI Opportunity Agenda," outlining recommendations for governments to maximise the economic and societal benefits of AI. The agenda focuses on four key areas:
- Investing in research and development
- Building infrastructure to support innovation
- Improving skills and training programmes
- Promoting widespread adoption
Brittin stressed the need for collaboration between governments, the private sector, academia, and civil society to develop responsible AI policies. He also called for a shift away from the EU's current regulatory-first approach, noting that since 2019, the EU has introduced over 100 pieces of legislation impacting the digital economy and society.
The report suggests that Europe is well-positioned to capitalize on the AI revolution, provided it can overcome current challenges and embrace the technology's potential for driving competitiveness and inclusive growth.