The economic opportunity of generative AI in Finland

Capturing the next wave of benefits from generative AI

4 April 2024

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost Finland’s competitiveness. To maximise the benefits of AI across society, Finland needs to leverage its strong performance in AI research by promoting innovation, investment and AI talent.

An Implement Consulting Group study commissioned by Google has estimated generative AI’s GDP contribution and implications on jobs in Finland. 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 Finland’s GDP by EUR 20-25 billion, 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 Finland, 63% of jobs are expected to work together with generative AI, 31% of jobs are likely to remain unaffected by generative AI, and only 6% 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: 75% of generative AI’s economic potential lies in service sectors, while manufacturing and other sectors can also benefit from other types of AI.
  • AI readiness: Finland performs well on many drivers of AI adoption but would need to ramp up on commercialisation and AI talent to take on a global AI innovator role.

Finland has historically been at the research frontier in the EU and needs to focus on innovation and talent to seize the AI opportunity.