The economic opportunity of generative AI in Norway

Capturing the next wave of benefits from generative AI

29 May 2024

Generative AI will boost global economic growth in the coming decade. It can increase productivity and boost Norway’s competitiveness. To capture the next wave of AI benefits across society, Norway 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 Norway. 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 Mainland Norway’s annual GDP by NOK 320-350 billion, amounting to +9% GDP in 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 around 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 to other value-creating activities.
  • Job implications: In Norway, 68% of jobs are expected to work together with generative AI, 27% of jobs are likely to remain unaffected by generative AI, and only 5% 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 benefitting: 80% of generative AI’s economic potential lies in service sectors, while manufacturing and other sectors can also benefit.
  • AI readiness: Norway is generally well placed for generalised AI use. However, drivers of AI adoption and innovation suggest that Norway is at risk of losing its frontrunner position – efforts are required across the board to remain a frontrunner.

    Maximising the gains from generative AI in Norway requires enhanced efforts on basic AI adoption drivers and accelerated commercial uptake.