The Projected Impact of Generative AI on Future Productivity Growth — Penn Wharton Budget Model
This Wharton Budget Model article analyzes how generative AI adoption may affect long-term productivity growth, weighing the potential efficiency gains against workforce challenges and measurement complexities. Connect with M4siz Limited to discuss what these shifts could mean for your business strategy.
Generative AI is expected to increase productivity and GDP by approximately 1.5% by 2035, nearly 3% by 2055, and 3.7% by 2075. The strongest boost to annual productivity growth is anticipated in the early 2030s, with a peak contribution of 0.2 percentage points in 2032.
Around 40% of current GDP could be significantly impacted by generative AI, with occupations at the 80th percentile of earnings being the most exposed. Approximately half of the work in these high-earning jobs is susceptible to automation by AI.
Long-term Effects of AI Adoption
While AI's boost to productivity growth is projected to peak in the early 2030s, its long-term effect will result in a permanent increase in total factor productivity (TFP) levels, estimated to be around 1.5% higher by 2035, 3% higher by 2055, and 3.7% higher by 2075 compared to a scenario without AI.
.jpeg)
The Projected Impact of Generative AI on Future Productivity Growth — Penn Wharton Budget Model
published by M4siz Limited
We are approaching our 25th anniversary in IT development and support services from our office in Essex, England.
We provide cost-effective software development and support services to deliver products that power your business needs and objectives. We have already built image analysis systems, cloud, and web services infrastructures so that you can be effective locally and globally using digital communication and management tools.
Our team has a range of ways to provide innovative solutions for your business that allows you the opportunity to re-imagine your products and services embracing the opportunities and protecting against the threats posed by our digital world.
Our focus is your business so that we understand how best to provide innovative solutions that grow with your business. Our platforms work across technology and we avoid building in solutions where you only have one provider or solution.
We hope the information on our website and micro-site prompts your interest in finding out more about our solutions and how we may be able to help you build cost-effective solutions.
Sign in with LinkedIn