According to management consultancy PwC, the German economy could grow by up to 0.7 percent per year with widespread and rapid application of generative artificial intelligence (genKI). The technology boost could lead to additional economic output of 220 billion euros by 2030, wrote the PwC data experts in a published study.
The biggest winners from the new technology are the industries in which large amounts of data are collected and processed – in addition to the tech and software industries, especially the media, entertainment, pharmaceutical and financial companies. They contribute almost a fifth of economic output in Germany. In these industries, artificial intelligence, which analyzes and recreates text, images and sound and operates through simple voice commands, could increase productivity by 8 to 15 percent by the end of the decade. This could also replace skilled workers, said PwC consultant Philipp Wackerbeck.
Action required
To do this, companies would have to implement the technology quickly, and politicians would have to improve the location conditions. If Germany wants to remain an economic heavyweight, AI champions must be lured into the country and retained through “access to talent, digital infrastructure, an attractive investment environment and other incentives,” said PwC data expert Matthias Schlemmer.
On the other hand, the automotive and chemical industries, the construction industry, the transport industry and agriculture are likely to benefit very little from generative AI. These sectors generate almost half of Germany’s gross domestic product. The study predicts only indirect, small efficiency gains for sectors characterized by industrial production, high material usage, high energy requirements or physical work.
In a global comparison, Germany is in the middle of the field when it comes to gene AI potential, according to the study. Switzerland is the frontrunner with a large proportion of pharmaceutical and financial companies. The USA, Great Britain and Sweden could also benefit enormously from genKI. In contrast, the potential in China, Japan, Canada and Norway is relatively low.
