The economic opportunity of generative AI in Austria

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost Austria’s competitiveness. To capture the next wave of AI benefits across society, Austria needs to promote innovation, invest in skills and ensure clear rules for the use and development of AI.

An Implement Consulting Group study commissioned by Google has estimated generative AI’s GDP contribution and implications on jobs in Austria. 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 Austria’s annual GDP by EUR 35-40 billion, corresponding to +8% GDP in the peak year if widespread adoption is achieved. Generative AI technology is developing faster than previously anticipated, and the peak economic contribution could come sooner than expected, already in about ten years.
  
  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 Austria, 62% of jobs are expected to work together with generative AI, 31% 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 due to automation, resulting in unchanged employment levels.
  
  
• Key sectors benefitting: Around 75% of Austria’s economic potential from generative AI lies in service sectors, while manufacturing and other sectors can also benefit from other types of AI.
  
  
• AI readiness: Austria has a strong operating environment for widespread AI use but falls behind on government strategy, infrastructure and key innovation drivers. Current gaps suggest that Austria is at risk of losing ground to European and global leaders and needs to ramp up talent development, R&D activities and commercialisation to harness the full potential of AI.