Generative AI could contribute €148bn to annual GDP by 2038 – report
Generative AI (GenAI) has the potential to contribute up to €148 billion to Ireland’s annual GDP by 2038, representing a 22% increase over the baseline forecast, according to a new report from Accenture.
The report, Generating Growth: How generative AI can power Ireland’s reinvention, also revealed a potential double-digit productivity uplift across the private and public sectors, based on the current capabilities of gen AI. Sectors such as life sciences and financial services could see productivity gains of up to approximately 20% and 30%, respectively.
The effective use of GenAI could increase Ireland’s average annual GDP growth rate for 2023-2038 from the baseline of 2.5% to 3.9%, marking a remarkable 55% boost to the nation’s long-term growth trajectory.
If the productivity benefits are fully harnessed as cost savings, the potential gains could be transformative. Across all industries analysed, total annual savings could amount to €22.2 billion if the full potential of today’s technology to automate and augment work is realised.
The public sector stands to benefit the most, with gen AI capable of enhancing 42% of working hours in the Irish public sector (excluding healthcare). This could deliver a productivity boost of up to 18%, translating into annual savings of €2.9 billion.
Hilary O’Meara, country managing director, Accenture in Ireland (pictured), said: “Ireland stands at a pivotal moment in its AI journey, with the potential to add €148 billion to annual GDP by 2038. Achieving this potential, however, will require collective action from the full ecosystem – government, business, and academia – to build an AI-skilled workforce and foster responsible innovation.
“Given the remarkable pace at which gen AI is advancing and the size of the opportunity, we need to move quickly. Establishing a robust digital core, preparing the workforce and fostering a culture of continuous learning are essential and should be underscored by responsible principles to ensure data privacy, transparency, and fairness remain central in all implementations. There is enormous opportunity here and by acting with urgency, Ireland can position itself at the forefront of AI-driven innovation and growth.”
As well as the financial impact, the impact on how we work is significant. In Ireland, seven in 10 workers could have at least a third of their working hours enabled by the technology, either through automation or augmentation. On average, this could save employees 17% of the time they currently spend on routine tasks.
Without a people-centric approach that empowers workers to perform higher-value tasks- rather than simply automating existing processes – €96 billion in economic value could be left untapped by 2038.
The report identified gaps in skills, hardware and trust at leadership level in public and private sectors as significant blockers to GenAI rollout.
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