The economic opportunity of generative AI in the Netherlands

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost the competitiveness of the Netherlands. The Netherlands needs a strong focus on innovation and an international outlook to propel its competitive edge into the generative AI era.

An Implement Consulting Group study commissioned by Google has estimated generative AI’s GDP contribution and implications on jobs in the Netherlands. Capturing the full potential of generative AI, however, depends on a number of drivers of AI adoption – from a robust operating environment to the availability of skilled AI practitioners. 

Key findings of the study

• Economic opportunity: Generative AI could boost the Netherlands’ GDP by EUR 80-85 billion, amounting to +9% GDP over ten years if widespread adoption is achieved.
  
  The gains come from three sources, including productivity increases from people working with generative AI, freed-up time from generative AI’s automation potential and the re-employment of time for other value-creating  activities.
  
• Job implications: In the Netherlands, 67% of jobs are expected to work together with generative AI, 26% of jobs are likely to remain unaffected by generative AI, and only 7% of jobs are deemed highly exposed to generative AI, leading to some job closures. However, new jobs in the AI-powered economy are expected to replace those lost to automation, resulting in unchanged employment levels.
  
• Key sectors benefiting: AI can boost productivity across top sectors in the Netherlands, especially in knowledge-intensive business services and public administration.
  
• AI readiness: The Netherlands has historically been good at commercialising new technologies and needs a strong focus on innovation and talent to capture the AI opportunity.

The Netherlands is well placed for generalised AI use and early phases of adoption. Despite its robust AI talent pool, the Netherlands has yet to transform its lead in AI talent to commercial ventures and startup activity.