How Generative AI is Boosting Global GDP

Generative AI isn't just a cutting-edge tech tool; it's a dynamic force changing the course of economies fluctuation. It's something we cannot ignore and must consider in our business operations. By streamlining tasks, boosting productivity and improving customer services, generative AI stands ready to dramatically bolster global GDP. This article delves into how generative AI is reshaping the economy and what the future brings.

How governments are reacting to AI in business

Firstly, it's important to note that many governments are showing unwavering support for integrating generative AI into businesses throughout their countries.

The UK Government is trialing the use of AI tools in 120 small businesses across the UK, to test how artificial intelligence could empower businesses in all industries, from agriculture to retail.

In January 2025, the Spanish Prime Minister, Pedro Sánchez, confirmed a €150 million programme to advance AI within businesses. Showing intent to surge technological and economic growth in Spain.

According to PwC, artificial intelligence has the potential to boost Switzerland's GDP by almost 20% within 5 years. So there's no question as to why the Swiss government has supportive policies and investments in AI research for the purpose of economic growth.

Greece has now also released their national AI policy with aims to bolster their economy and society with emphasis on innovation.

The European Union is also aware of the economic change that generative AI will bring, and has officially created the "European AI Office'. Here, employees will be working towards the use of trustworthy AI throughout Europe.

Economic Impact of Generative AI

The economic benefits of generative AI are striking, especially because you can use it in so many areas of business operations, for example:

• Cut customer services costs and increase customer retention with 24/7 AI customer support, leaving your employees time for more complex issues and to go the extra mile in customer service.
• Cut slow employee processes by speeding up with AI, making every penny count towards the salaries you pay.
• Use of AI in planning will refine your plans to be 100% objective focused and provide assistance in decision making, making for a more successful project/sales/marketing plan.
• Use of AI in day to day work to ensure you outperform your competitors and build a positive reputation. From successful hospital operations to well-planned landscaping projects, all industries can benefit from AI to improve decision making.

As more businesses embrace generative AI, productivity gains are remarkable. AI can swiftly and accurately analyse vast data sets, providing insights that guide strategic decisions. This data-driven approach leads to better resource allocation, optimised processes, and increased innovation.

Broader Economic Implications

The economic advantages of generative AI extend beyond individual enterprises. As more companies harness AI technologies, the collective effect enhances overall economic productivity. According to J.P. Morgan Research, "Overall, generative AI could increase global GDP by $7–10 trillion, or by as much as 10%." This forecast underscores the transformative power of AI on a global scale.

Generative AI is also promoting economic inclusivity. By lowering entry barriers across various sectors, AI enables small and medium-sized enterprises (SMEs) to compete with larger corporations. For instance, AI-driven marketing tools can help SMEs effectively target their audiences, levelling the playing field and fostering economic diversity.

Real-World Examples of AI-Driven Growth

Several real-world cases illustrate how generative AI is propelling economic growth. In finance, AI algorithms are optimising trading strategies, minimising risks, and boosting returns. Companies like Goldman Sachs and J.P. Morgan are heavily investing in artificial intelligence to gain a competitive advantage and maximise profits.

In manufacturing, AI-powered robots are revolutionising production lines, increasing output, and enhancing quality control. Reducing operating costs, but also enabling manufacturers to efficiently manage supply for fluctuating demand.

In retail, AI is revolutionising the shopping experience. Personalised recommendations, dynamic pricing, and AI-generated product descriptions are boosting customer engagement and driving sales. Retail giants like Amazon and Walmart are leveraging AI to streamline operations and increase revenue.

The Future of Generative AI and GDP Growth

The potential for generative AI to drive GDP growth is vast. As AI technologies advance, their applications will broaden, creating new opportunities for economic development. Policymakers and businesses must invest in AI research and development, education, and infrastructure to fully realise these benefits.

Governments can play a pivotal role by creating supportive regulatory environments, promoting AI literacy, and encouraging public-private partnerships. By doing so, they can ensure that the economic benefits of generative AI are widely distributed and contribute to sustainable growth.

Conclusion

Generative AI is a powerful engine for economic growth, driving efficiency, innovation, and new business opportunities. With the potential to increase global GDP by up to 10%, governments are endorsing AI technologies that can redefine the economic landscape. As businesses and governments invest in AI, the future promises even greater advancements, positioning generative AI as a key driver of global prosperity.

Explore how Centrus AI can empower your business with generative AI. Contact us today to learn more.