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THE NEW ECONOMY AND THE FUTURE

MGI further projects that artificial intelligence could
result in an increase of approximately $13 trillion US
dollars in economic output worldwide by 2030, resulting
in an annual increase of approximately 1.2 percent in
global GDP. This will primarily be due to automation
replacing labor and an increase in the rate of innovative
product and service development. On the other hand,
some sources propose that artificial intelligence will
havea limited impact on growth, as evidencedby sectors
with the highest productivity growth rates but a declining
overall share of the economy.

Also, AI could cause a shock in the labor markets, as
well as the associated costs required to manage labor
market transitions. This shock would be caused by
negative externalities such as a decrease in domestic
consumption as a result of unemployment.

Despite AI’s advancement, some areas of the economy
will remain critical and difficult to improve using AI,
requiring well-paid human labor. In the end, this would
preventnewtechnology from havingawidespreadimpact
on these sectors of the economy. It is also possible that
AI will stifle future innovations because it will accelerate
imitation, reducing the return on invention.

As a result, AI is likely to have both positive and negative
effects on the economy. It remains to be seen whether
the positive will outweigh the negative.

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