New Delhi, Oct 25 (IANS) Artificial intelligence (AI) has the potential to generate $2.52 trillion in annual economic value worldwide by automating and enhancing existing work processes, but rising deployment costs could significantly reduce those benefits, according to a new report by consulting firm McKinsey.
The report, titled The AI Value Curve: The Economics of Applying AI to Existing Work, highlights a growing disconnect between the rapid adoption of AI technologies and the economic value organisations are actually able to capture.
According to the study, many companies are prioritising AI implementation without adequately evaluating whether the technology is delivering sufficient returns on investment.
McKinsey estimated that a 30 per cent increase in the effective cost of AI deployment could erase as much as $850 billion in annual economic value. Under such a scenario, the technology’s projected global impact would decline from $2.52 trillion to $1.67 trillion per year.
In the United States, the report found that annual economic value generated by AI could fall from $960 billion to $640 billion if costs rise by a similar margin. McKinsey noted that these figures represent a modelled scenario rather than a prediction of future outcomes.
The findings come at a time when businesses are spending heavily on AI infrastructure, software platforms and automation technologies. The report estimated that global investments in AI infrastructure could reach approximately $7 trillion by 2030, requiring annual profit pools of around $760 billion to justify those expenditures.
Among industries, financial services emerged as the sector with the highest potential gains from AI adoption, with estimated annual economic benefits of $530 billion.
The education sector ranked second, with potential gains of $410 billion, followed by technology, media and telecommunications at $360 billion. Healthcare could generate an estimated $310 billion in annual value through AI-enabled applications.
The report also challenged the perception that AI’s primary role is to replace lower-wage workers. Instead, it suggested that some of the most attractive economic opportunities lie in supporting highly skilled professionals in fields such as law, healthcare, management and computer-related occupations, where the technology can enhance productivity and decision-making.
–IANS
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