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AI to Supercharge UK Economy by Billions
4 Jan
Summary
- AI will add billions to UK GDP within six years.
- Productivity gains are expected to rise significantly by 2032.
- AI's contribution to GDP growth will increase dramatically by 2032.
Artificial intelligence is projected to inject billions into the United Kingdom's economy over the next six years, primarily through significant productivity enhancements. PwC forecasts that AI will add approximately £2 billion to the Gross Domestic Product (GDP) this year, a figure expected to climb to £7 billion by 2029 and reach a remarkable £23 billion by 2032.
This technological advancement is set to become a key driver of economic growth, particularly as the UK seeks to bolster its economy from within. With minimal population growth anticipated, reducing economic inactivity and increasing productivity through AI adoption will be paramount. This focus on internal growth may offer a vital boost to ministers aiming to counteract recent economic stagnation.
AI's impact on GDP growth is expected to escalate substantially. While it will contribute about one-tenth of the estimated 1.2 per cent GDP rise this year, its share is predicted to surge to 43 per cent by 2032. This increasing reliance on AI underscores its growing importance as a tool for economic expansion and stability.
