Generative AI’s impact on the U.S. economy will reach a staggering $1 trillion over the next decade, but it could come at a price for workers, according to a study from Cognizant Impact on Wednesday.
The tech study cautions some 90% of jobs will be disrupted in the process.
“The research findings showcase just how quickly this technology might disrupt the trajectory of the U.S. economy, offering invaluable insights for leaders to harness its potential and adapt swiftly,” Adrian Cooper, chief executive at Oxford Economics, said in a statement. Cognizant partnered with Oxford Economics to create an economic model for the study.
Generative AI has the potential to improve operational efficiency, create new revenue streams, innovate products and services, and ultimately redefine businesses, according to the study. The economic model looked at 18,000 tasks that drive the U.S. economy.
Gen AI could boost U.S. productivity by 1.7% to 3.5% and inflate the U.S. GDP between $477 billion and $1 trillion in annual value over the next 10 years, based on business adoption rates.
Meanwhile, 52% of jobs face significant change: Approximately 9% of the current U.S. workforce may be displaced, with 1% potentially struggling to find new employment based on historical economic shifts, the study concluded.
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