Artificial intelligence will add billions to the UK economy within the next six years as machines boost productivity, accountancy giant PwC has predicted.
Its economists estimated that AI would add around £2 billion in productivity gains to gross domestic product (GDP) this year, increasing to £7 billion by 2029 and £23 billion by 2032.
PwC predicted AI would contribute around one-tenth of the estimated 1.2 per cent rise in GDP this year, but by 2032 this will be 43 per cent.
The firm’s UK chief economist Barret Kupelian said the British economy was likely to see a ‘much stronger focus’ on driving growth from inside the country, rather than relying on international trade.
Productivity boost: Artificial intelligence will add billions to the UK economy within the next six years
He added that this could include driving ‘the take-up of AI across the economy,’ particularly amid ‘little to no growth’ in the population this year due to a slowdown in migration and birth rates. ‘This means reducing economic inactivity and increasing productivity will become much more important levers to grow the economy,’ PwC said.
Expectations that AI will boost growth may come as a relief for ministers trying to avoid stagnation after official figures last month showed the economy shrank by 0.1 per cent in October.
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