The economic opportunity of generative AI in the EU

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost the EU’s competitiveness in an era where Europe lags behind the US in economic growth. To capture the next wave of AI benefits across society, the EU needs to promote innovation, invest in skills and ensure clear rules.

An Implement Consulting Group study commissioned by Google has estimated generative AI’s GDP contribution and implications on jobs in the EU. However, capturing the full potential of generative AI 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 EU’s GDP by EUR 1.2-1.4 trillion, amounting to +8% 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 EU, 61% of jobs are expected to work together with generative AI, 32% 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: Generative AI can boost productivity across sectors by augmenting and improving human capabilities. In contrast to past automation, such as robots, generative AI can boost productivity in services, where 80% of its economic potential lies.
  
  
• AI readiness: The EU performs well on the early foundational drivers of AI adoption that ensure a safe and reliable AI-ready environment but lags behind globally on AI innovation drivers (talent, research, development and commercialisation). Present gaps indicate that the EU risks falling behind the next wave of AI and needs to ramp up its efforts to remain competitive.