McKinsey: Generative AI overturns notions about automation

McKinsey: Generative AI overturns notions about automation

New York, 6/17/2023

A new report from the McKinsey Global Institute suggests that generative AI could contribute as much as $4.4 trillion to the global economy annually, or about 4.4% of total economic output.

In comparison, the total GDP of the UK in 2021 was $3.1 trillion. The study predicts that generative AI, including chatbots like ChatGPT, could automate 60% to 70% of workers‘ work hours, leading to the automation of half of all work between 2030 and 2060.

McKinsey estimates that generative AI could add $2.6 trillion to $4.4 trillion in value across multiple industries. Greater adoption of the technology could increase productivity by 0.1% to 0.6% over the next two decades. Banking, high tech, and life sciences were among the industries that saw the greatest impact from Gen AI in terms of total revenue.

The impact of generative AI on the workforce, particularly high-earning knowledge workers, challenges previous notions of automation. Unlike previous technologies that impacted low-wage jobs, McKinsey says generative AI targets cognitive tasks, making higher-paying jobs more vulnerable. In the developed economies, there will be faster automation, which will primarily affect office work. As the report predicts a restructuring of work patterns, McKinsey emphasizes the need to support workers in acquiring new skills and transitioning to other jobs.