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 COR Concepts 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.
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The Projected Impact of Generative AI on Future Productivity Growth — Penn Wharton Budget Model
published by COR Concepts
COR Concepts provides Information Governance, Records Management and Enterprise Content Management (ECM) consulting and training services. The company is built on the belief that any Information, Records or Document Management initiative should be designed to extract the maximum business benefit for the organization.
We bring together Compliance, Risk Management and Operational information requirements in a way that delivers benefits to each one of these diverse business units. Our approach is to use an array of industry standards and best practice methodologies to ensure that each implementation will stand the test of time.
We see information governance and records management as an integral part of any Enterprise Content Management implementation and focus on building a solid platform including a records management policy, records management procedures, file plans and a solid change management infrastructure. Building and implementing governance structures is becoming essential for success and we design structures to ensure that all governance aspects are included.