GenAI could boost global economic productivity

Significance

Similarly, economists have been analysing whether the technology can help the global economy overcome the period of poor productivity growth it has been facing since the mid-2000s. Regardless of any benefits, there is also widespread concern over its impact on job markets.

Impacts

• GenAI offers the global economy a real chance of overcoming a long period of low productivity growth.
• Higher productivity could help alleviate growing fiscal pressures.
• Concerns over GenAI’s impact on income inequality will increase political pressure for new wealth redistribution policies.