Generative AI's economic potential

Generative AI could add $2.6 trillion to $4.4 trillion annually to the global economy, increasing
the impact of artificial intelligence by 15 to 40 percent.
75 percent of the value delivered by generative AI falls across customer operations, marketing
and sales, software engineering, and R&D.
Generative AI will have a significant impact across all industry sectors, with banking and retail
being particularly affected.
Generative AI can automate work activities that currently absorb 60 to 70 percent of employees'
time, with a potential for workforce transformation by 2030-2060.
Combining generative AI with other technologies, work automation could add 0.2 to 3.3
percentage points annually to productivity growth.
Generative AI requires investments to support workers in transitioning to new activities or jobs.
The era of generative AI is just beginning, with challenges in managing risks, developing new
skills, and rethinking business processes.
Breakthroughs in deep learning have enabled the rise of generative AI, with applications in
various fields.
Generative AI as a technology catalyst
Generative AI tools like ChatGPT and GitHub Copilot are the result of significant investment in
machine learning and deep learning.
Generative AI has permeated our lives incrementally, but recent applications have captured
public attention due to their broad utility and ability to write text, compose music, and create
digital art.
Stakeholders are grappling with generative AI's impact on business and society.
Foundation models are a step change evolution within deep learning, enabling new capabilities
across different modalities.
Continued innovation in generative AI brings new challenges but also leads to increased
funding.
Google announces new features powered by generative AI
Google has announced several new features powered by generative AI, including Search
Generative Experience and a new LLM called PaLM 2.
PaLM 2 will power Google's Bard chatbot and other Google products.
Generative AI investment concentrated in North America
External private investment in generative AI is largely concentrated in North America.
Generative AI-related companies in the United States raised about $8 billion from 2020 to 2022,
accounting for 75 percent of total investments.
Generative AI reshaping industries and boosting performance
Generative AI has the potential to reshape how knowledge work is done in various industries.
It can transform roles and boost performance in functions such as sales, marketing, customer
operations, and software development.
Economic potential of generative AI
Generative AI has the potential to unlock trillions of dollars in value across sectors from banking
to life sciences.
It can create value for companies and alter the workforce.
Definition of key terms related to generative AI
The summary provides definitions for terms such as API, artificial intelligence (AI), artificial
neural networks (ANNs), deep learning, and more.
Generative AI use cases and economic benefits
There are 63 generative AI use cases spanning 16 business functions that could deliver total
value in the range of $2.6 trillion to $4.4 trillion in economic benefits annually when applied
across industries.
This would add 15 to 40 percent to the estimated economic value that nongenerative artificial
intelligence and analytics could unlock.
Generative AI's potential impact on labor productivity
Generative AI's current capabilities could affect labor productivity across all work currently done
by the global workforce.
Scenarios were modeled to estimate when generative AI could perform over 2,100 detailed
work activities across 850 occupations.
Evaluation of generative AI's potential impact
The potential impact of generative AI is evaluated through two lenses: organizational use cases
and labor productivity potential.
These lenses provide insights into the economic and workforce implications of generative AI.
Generative AI's Economic Potential
Generative AI has the potential to generate $6.1 trillion to $7.9 trillion annually in economic
benefits
This value includes improved labor productivity and new use cases across knowledge workers'
activities
Generative AI's Impact on the Global Economy
Generative AI could create additional value potential compared to other AI and analytics
It is estimated to have an incremental economic impact of 15-40% and 35-70%
Traditional advanced-analytics and machine learning algorithms still dominate the overall value
potential
Estimating Value Potential of Generative AI Use Cases
Use cases were analyzed based on generative AI's ability to deliver significant improvements in
key value-driving outputs
Natural language capabilities were not considered the primary driver of value in these use cases
The potential annual value of generative AI use cases was estimated if adopted economy-wide
Value Potential by Function
Generative AI could have the greatest impact on customer operations, marketing and sales,
software engineering, and research and development
These four functions could account for approximately 75% of the total annual value from
generative AI use cases
Manufacturing and supply chain functions have lower potential value due to the nature of
generative AI use cases
Generative AI as a Virtual Expert
Generative AI can revolutionize internal knowledge management systems
It can help employees retrieve stored internal knowledge through natural-language queries
Virtual expertise can improve decision-making and strategy development
Transforming Customer Operations
Generative AI can enhance customer self-service interactions by delivering personalized
responses
Human agents can receive real-time assistance and suggestions during phone conversations
Agent self-improvement through automated insights and personalized coaching is possible
Revolutionizing Customer Operations
Generative AI has the potential to revolutionize the entire customer operations function
It can improve the customer experience through digital self-service and augment agent skills
Generative AI has shown positive results in increasing issue resolution and reducing handling
time
Operational Improvements with Generative AI
Generative AI-fueled chatbots can provide immediate and personalized responses to customer
inquiries
Automated channels can handle a higher percentage of customer inquiries
Generative AI improves productivity and quality of service for less-experienced agents
Generative AI in Customer Care
Generative AI can help reduce the volume of human-serviced contacts by up to 50% in banking,
telecommunications, and utilities companies.
Generative AI can retrieve customer data to assist human representatives in resolving issues
during initial interactions.
Generative AI can cut response time by providing real-time assistance and recommending next
steps.
Generative AI can increase sales by processing customer data and identifying personalized
product suggestions and deals.
Applying generative AI to customer care functions can increase productivity by 30-45% of
current function costs.
Generative AI in Marketing and Sales
Generative AI enables marketing professionals to gather market trends and customer
information and create effective communications.
Generative AI can create personalized messages tailored to individual customer interests and
produce first drafts of brand advertising and product descriptions.
Generative AI can emulate human qualities and build trust with customers, leading to higher
retention rates.
Generative AI can significantly reduce the time required for content creation and facilitate
collaboration among team members.
Generative AI can help marketers better use data and optimize search engine optimization
(SEO).
Generative AI can personalize product discovery and search, leading to higher website
conversion rates.
Applying generative AI to marketing can increase productivity by 5-15% of total marketing
spending.
Generative AI in Sales
Generative AI can identify and prioritize sales leads and suggest actions to improve client
engagement.
Generative AI can help sales representatives nurture leads by providing relevant information
and creating discussion scripts.
Implementing generative AI in sales could increase productivity by approximately 3-5% of
current global sales expenditures.
Generative AI as a Virtual Collaborator
Generative AI can work in partnership with workers to enhance knowledge work and accelerate
productivity.
Generative AI's ability to analyze data and offer insights can speed up product development and
allow more time for higher-impact tasks.
Generative AI in Software Engineering
Generative AI can assist in analyzing and labeling large volumes of data for software engineers
and product managers.
Generative AI can accelerate system design by creating multiple IT architecture designs.
AI tools can assist engineers in coding and reduce development time.
Generative AI can enhance functional and performance testing by generating test cases and
test data.
Treating computer languages as just another language, generative AI can open new possibilities
for software engineering.
AI's Impact on Software Engineering
AI could reduce time spent on activities like code generation, correction, and refactoring, leading
to a productivity boost of 20-45% in software engineering spending.
Generative AI tools like GitHub Copilot can speed up coding tasks by 56%.
Generative AI in Maintenance
Engineers use AI insights to diagnose and fix issues, predict areas for improvement.
Generative AI can optimize test cases, reducing physical build and testing time.
Generative AI in Product R&D
Generative AI can deliver productivity worth 10-15% of overall R&D costs.
Generative AI is used in life sciences and chemical industries for generative design and
drug/material development.
Pretrained foundation models can accelerate time to market and broaden generative design
applications.
Deep Learning Surrogates in R&D
Deep learning surrogates paired with generative AI can enhance product testing and designs.
Generative AI can create step changes in performance and economic growth.
Value Potential by Modality
Generative AI's value extends beyond text-based applications to image, audio, and video, with
applications in marketing and media.
Generative AI can increase productivity in R&D domains like circuit designs, architectural
drawings, and thermal designs.
Value Potential by Industry
Generative AI has the potential to generate $2.6 trillion to $4.4 trillion in value across industries.
Its impact will vary based on industry revenue and function importance.
Generative AI productivity impact by business functions
Marketing and sales: Generative AI can accelerate consumer research, assist in copywriting for
marketing content, and enhance customer targeting.
Customer operations: Generative AI can improve customer service, enhance customer support
through augmented reality, and rapidly inform the workforce about product status and consumer
preferences.
Product and R&D: Generative AI can accelerate research and drug discovery, facilitate
customer documentation generation, and generate content for commercial representatives.
Software engineering: Generative AI can optimize migration of legacy code, improve customer
emergency interactive voice response, and personalize retail banking offers.
Supply chain and operations: Generative AI can enhance procurement process negotiation,
expedite drafting legal documents, and create model documentation for risk management.
Risk and legal: Generative AI can automate lower-value tasks in risk management, such as
required reporting and regulatory monitoring.
Strategy and finance: Generative AI can generate alternatives for A/B testing in personalized
marketing and sales content, and create model documentation for risk management.
Corporate IT/Talent and organization: Generative AI can optimize legacy code migration,
improve customer emergency interactive voice response, and assist in drafting legal
documents.
Value potential of generative AI in top industries
Retail and consumer packaged goods: Generative AI could increase productivity by 1.2 to 2.0
percent of annual revenues, or an additional $400 billion to $660 billion. Use cases include
accelerating consumer research, enhancing customer support, and improving copywriting for
marketing content.
Pharma and medical products: Generative AI could accelerate research and drug discovery,
facilitate customer documentation generation, and prepare scripts for interactions with
physicians.
Banking: Generative AI could optimize legacy code migration, enhance customer emergency
interactive voice response, and personalize retail banking offers.
Generative AI's impact in retail and consumer packaged goods
Generative AI can automate key functions such as customer service, marketing and sales, and
inventory and supply chain management, increasing productivity by 1.2 to 2.0 percent of annual
revenues.
Generative AI can personalize offerings, optimize marketing and sales activities, and improve
data management.
Generative AI tools can enhance the customer experience by providing personalized shopping
recommendations and enabling next-generation interactions.
Generative AI can facilitate copywriting, accelerate consumer research, and improve content
analysis and creation.
Generative AI offers opportunities for cross-selling, upselling, and personalized marketing
campaigns.
Enhanced customer interactions
Generative AI can enhance chatbots to better mimic human interaction styles in customer care,
automating repetitive tasks and allowing human agents to handle more complex problems.
By combining existing AI tools with generative AI, retailers can improve responsiveness and
offer personalized services like tracking orders and offering discounts.
Disruptive and creative innovation
Generative AI tools can rapidly create new designs for products and packaging, accelerating the
product development process.
This technology also has the potential to add text-to-video generation capabilities.
Additional factors to consider
External inference and adversarial attacks are concerns when using generative AI, requiring
quality control, security, and privacy measures.
Companies need to strategically involve humans in the process and implement new quality
checks for AI-assisted processes.
Banking industry potential
Generative AI can bring substantial value to the banking industry, increasing productivity by
2.8% to 4.7% of annual revenues.
It can also enhance customer satisfaction, decision making, employee experience, and
fraud/risk monitoring.
Banks in the digitized and customer-facing industry are well-suited for generative AI
applications.
Applications in banking
Generative AI can augment employee performance by providing technical support and enabling
access to data for better customer experiences.
It can also reduce back-office costs by assessing user requests and selecting the best service
expert to address them.
Generative AI tools can accelerate software development, including code drafting, testing,
translation, and defect identification.
Content generation can be streamlined by creating personalized marketing and sales content
and automating model documentation.
Factors for banks to consider
Regulation levels, end users' expectations, and intended levels of work automation are factors
to consider when integrating generative AI in banking operations.
Data constraints should be taken into account, ensuring limits on identifiable details for
customers and internal data.
Pharmaceutical and medical products potential
Generative AI deployment could unlock value equal to 2.6% to 4.5% of annual revenues in the
pharmaceutical and medical-product industries.
Improving the speed and quality of R&D with generative AI can have a significant impact on the
resource-intensive process of discovering new drug compounds.
Generative AI use
Generative AI can speed up lead identification in the drug discovery process, completing the
step in a matter of weeks instead of months.
This technology has the potential to revolutionize R&D in the pharmaceutical and
medical-product industries.
Improving Automation of Preliminary Screening
Generative AI can automate the preliminary screening of chemicals in the lead identification
stage of drug development. It can cluster similar images more precisely than traditional models,
enabling scientists to select promising chemicals for further analysis.
The use of off-the-shelf foundation models in this process has led to high success rates in
clinical trials.
Enhancing Indication Finding
Generative AI can help researchers identify and prioritize new indications for specific
medications or treatments.
By quantifying clinical events and establishing relationships between patient cohorts and
evidence-backed indications, generative AI can recommend indications that have a better
probability of success in clinical trials.
Factors to Consider Before Integrating Generative AI
Companies should implement new quality checks when shifting from humans to generative AI.
The lack of transparency and explainability in generative AI can pose challenges when updating
models and verifying generated content.
Privacy considerations regarding the use of clinical images and medical records must be taken
into account.
The Economic Potential of Generative AI
Generative AI has the potential to deliver significant organizational value in various industries
and business functions.
It can augment work activities and automate individual tasks, leading to increased productivity.
Maximizing its value while managing its impact on workforces and society is crucial.
Technological Automation and Work Activities
Large-scale shifts in work activities and occupations have occurred in the past due to
technological advancements.
Generative AI can automate work activities, but adoption takes time and economic feasibility
must be considered.
These shifts can have both challenges and benefits for workers and organizations.
Technology Adoption Timeline
Adoption timelines for various technologies range from eight to 27 years.
Factors such as regulation, investment, and management decision making affect the pace of
adoption.
Automating Work Activities
Modeled scenarios create a time range for automating current work activities.
Reality is likely to fall between the earliest and latest scenarios.
Technical Automation Potential
Assessment of potential technical automation across different activities and capabilities.
Generative AI can achieve human-level performance earlier than previously estimated.
Increased Automation Potential
Generative AI has increased the percentage of hours that could be automated.
Estimated automation potential has increased from 50% to 60-70%.
Adoption Lags Behind Automation Potential
Integration time, costs, and technology diffusion affect the adoption of automation.
Generative AI has accelerated the scenarios for automation adoption.
Shift in Work Activities
Generative AI's enhanced capabilities might shift daily work activities.
English language and literature teachers could benefit from more automated activities.
Faster Adoption in Developed Countries
Automation adoption is faster in countries with higher wages.
China, India, and Mexico are expected to adopt automation more slowly.
Limitations and Sensitivities
Assumptions and sensitivities apply to the analysis of generative AI's impact on work activities
and automation adoption.
Limitations of Analysis
The analysis only considers the potential for automation of current work activities and
occupations.
It does not account for how work activities may shift over time or forecast new activities and
occupations.
The analysis only accounts for first-order effects and does not take into account labor rate
changes or general equilibrium effects.
Assessments of technology capabilities are based on expert estimates and could change over
time.
Technology Adoption Curves
Historically, technologies take eight to 27 years to reach a plateau in adoption.
Generative AI may have a faster adoption potential.
The adoption scenario accounts for the role of small and midsize enterprises and challenges in
larger organizations.
Scale of Work Automation
Work automation does not equate directly to job losses.
Generative AI typically enables automation of individual activities within occupations.
Activities in many occupations have historically shifted over time as certain activities are
automated.
Impact on Knowledge Work
Generative AI is likely to have the biggest impact on decision making and collaboration activities
in knowledge work.
Automation potential has risen steeply due to generative AI's ability to understand and use
natural language.
Activities involving communication, supervision, documentation, and interacting with people
have the potential to be automated.
Impact on Educated Workers
Generative AI is likely to have the most incremental impact on the activities of more-educated
workers.
The deployment of generative AI challenges the use of multiyear degree credentials as an
indicator of skills.
A skills-based approach to workforce development is advocated for more equitable and efficient
training systems.
Impact on Higher-Wage Jobs
Generative AI is likely to transform the work of higher-wage knowledge workers.
Advances in the technical automation potential of their activities contribute to this impact.
Automation Impact
Automation's impact was highest in lower-middle-income quintiles.
The largest increase in automation adoption was from generative AI.
Declining Employment
Long-term structural challenges, such as declining birth rates and aging populations, are
obstacles to growth.
Productivity growth has slowed in tandem with slowing employment growth.
Productivity Boost
Generative AI and other technologies could provide an annual productivity boost of 0.2 to 3.3
percent from 2023 to 2040.
Generative AI could contribute 0.1 to 0.6 percentage points of that growth.
Expanded Pool of Work Activities
Generative AI vastly expands the pool of work activities with the potential for technical
automation.
It can increase human productivity and offset the impact of aging.
Reshaping Societies
Generative AI has the potential to reshape societies.
It can generate trillions of dollars of additional value each year and transform the nature of work.
Considerations for Businesses and Society
Stakeholders must act quickly to address both the opportunities and risks of generative AI.
Concerns include intellectual property, accuracy, fairness, and harmful stereotypes.
Workforce Transitions
In the coming decade, about a quarter to a third of work activities could change.
Managing the potential positives and negatives of generative AI is crucial.
Responsibility and Transparency
Companies must capture the potential value of generative AI while managing the risks.
Transparency and responsible deployment of generative AI are important.
Addressing fairness, intellectual property, and negative use cases is crucial.
Sharing experiences transparently with governments and society is necessary.
Privacy Concerns
Generative AI can lead to privacy concerns if user input ends up in identifiable model outputs.
Malicious content such as disinformation, deepfakes, and hate speech can be created and
disseminated using generative AI.
Security Risks
Bad actors can use generative AI to accelerate cyberattacks and manipulate outputs
maliciously.
Prompt injection can be used to trick models into delivering unintended outputs.
Explainability Challenges
Generative AI relies on complex neural networks, making it difficult to explain the reasoning
behind outputs.
Explaining how any given answer is produced becomes challenging.
Reliability Issues
Models can produce different answers to the same prompts, making it hard to assess accuracy
and reliability.
Users may struggle to determine the trustworthiness of outputs.
Organizational Impact
Generative AI may have a significant impact on the workforce, potentially affecting specific
groups and local communities negatively.
The workforce needs to adapt to the changes brought by generative AI.
Social and Environmental Consequences
The development and training of generative AI models may lead to negative social and
environmental impacts.
Training large language models can result in a substantial increase in carbon emissions.
Future of Work and Skills
Policy makers need to consider the impact of generative AI on occupations, skills, and
workforce planning.
Support programs and policies for workers as activities shift, including retraining programs and
earn-while-you-learn opportunities.
Ensure that generative AI is used responsibly to prevent harm to society and vulnerable
populations.
Individuals as Workers and Consumers
Citizens need access to accurate and unbiased information on how generative AI will affect their
lives and livelihoods.
Balancing the conveniences of generative AI with its impact in workplaces.
Empowering citizens to have a voice in the decisions regarding the deployment and integration
of generative AI.
Planning Tools and Internal Tools
Activities related to developing planning tools and other internal tools, customized to meet
specific business or customer needs.
Product R&D
Activities related to new product or service development, including market and academic
research, ideation, and simulations in early stages.
Later stages involve heavy simulations, prototyping, and testing.
Legal, Risk, and Compliance
Activities related to risk management and compliance, such as labor relations, litigation support,
and contract creation.
Marketing and Sales
Activities related to B2B and B2C marketing, including market research, creative work,
marketing strategy, sales, and customer interaction support.
Includes pricing analytical support, price scraping, and item matching.
IT
Activities related to internal information technology systems, such as administrative tasks and IT
help desk support.
Excludes software engineering for internal solutions.
Talent and Organization
Activities related to organizational performance and talent management, including
organizational health assessment, recruiting, learning and development, and human resources
functions.
Finance and Strategy
Activities related to financial operations, such as general accounting, financial planning and
analysis, accounts payable and receivable.
Includes internal strategy functions like market intelligence and strategic planning.
Estimating Generative AI Impact
Estimate the impact of generative AI in individual use cases using expert inputs, internal
experiments, and published research.
Quantify potential range of impact (cost savings and revenue uplift), and consider qualitative
findings from specific functions.
Summary Point 1
Approximately 80 percent of the US workforce could have at least 10 percent of their work tasks
exposed to LLMs (large language models), which could reduce the time required to complete
these tasks by at least 50 percent.
Nineteen percent of workers may see at least 50 percent of their tasks exposed to LLMs.
Summary Point 2
About 15 percent of all worker tasks in the United States could be performed significantly faster
at the same level of quality with LLMs.
This share increases to 47 to 56 percent when incorporating software and tooling built on top of
LLMs.
Summary Point 3
Generative AI, including LLMs, could increase labor productivity by 0.1 percent to 0.6 percent
annually over the next ten to 20 years.
When combined with other technologies, automation overall could contribute 0.2 to 3.3 percent
annually to productivity growth.
Summary Point 4
The capabilities of generative AI have increased the share of time spent on work activities that
could be automated from about half to two-thirds of all working time.
Estimates suggest that half of today’s work activities could be automated by generative AI in
scenarios ranging from 2030 to 2060.
Summary Point 5
Generative AI's increased natural language capabilities are driving much of the acceleration in
the potential for technical automation.
Occupations requiring higher levels of education and commanding higher wages are expected
to be most impacted by the automation.
Summary Point 6
Occupations most exposed to language modeling require communication and language-based
abilities.
Occupations most exposed to image generation require visual or spatial abilities.
Summary Point 7
There is a positive correlation between generative AI exposure and median salaries, required
education levels, and the presence of creative abilities within an occupation.
There is a negative correlation between generative AI exposure and percent of male, Black, and
Hispanic representation in occupations in the US workforce.
Summary Point 8
In the United States and Europe, two-thirds of jobs are being exposed to some degree of AI
automation.
Extrapolating globally, 18 percent of work could be automated by AI, depending on different
levels of AI capabilities.
Exposure to LLMs in the US Workforce
About 80% of the US workforce could have at least 10% of their work tasks exposed to LLMs,
resulting in a reduction of at least 50% in completion time.
19% of workers may see at least 50% of their tasks exposed to LLMs.
15% of all worker tasks in the United States could be performed significantly faster at the same
level of quality with LLMs, and this share increases to 47-56% when incorporating software and
tooling built on top of LLMs.
Occupational Heterogeneity in Exposure to Generative AI
Exposure scores of occupations most exposed to advances in AI language modeling and AI
image generation in the US workforce were estimated.
Ten AI applications and 52 human abilities were linked to create exposure scores for language
modeling and image generation.
O*NET database provided mapping from occupations to human abilities, and American
Community Survey data provided demographic information.
Economic Potential of Generative AI
The capabilities of generative AI have increased the share of time spent on work activities that
could be automated by adapting technologies available in 2023 from about half to two-thirds of
all working time.
Estimates suggest that half of today's work activities could be automated by 2030-2060, with a
midpoint estimate in 2045.
Generative AI's increased natural language capabilities contribute to the acceleration in the
potential for technical automation.
Impact of generative AI will fall heavily on occupations requiring higher levels of education and
commanding higher wages.
Generative AI could increase labor productivity by 0.1% to 0.6% annually over the next ten to 20
years, contributing to overall productivity growth.
Analysis of Automation Potential
Technical potential for automation across the global economy was assessed by analyzing the
component activities of each occupation.
Approximately 2,100 detailed work activities were mapped to 18 capabilities that could
potentially be automated.
Automation adoption timelines were modeled based on technical feasibility, solution
development, economic feasibility, and end-user adoption phases.
Updated timelines for performance capabilities and estimates for solution development and
economic feasibility were gathered through expert assessments and interviews.
Generative AI capabilities like natural language understanding, generation, social and emotional
reasoning, creativity, and logical reasoning were considered in the assessment.
Initial Solution Costs: Hardware and Software
The model considers initial solution costs ranging from 20 to 70 percent of the highest hourly
wage for hardware and 0 to 20 percent for software.
Solution costs decrease over time, with hardware solution costs declining by 16.0 percent per
year and software solution costs declining by 5.3 percent per year.
Wage Evolution
Wage evolution is modeled in two stages, from 2023 to 2030 and from 2030 onward.
Country-level growth estimates are converted into constant US dollars, and a CAGR is
calculated for each country.
Countries with similar annual wages are grouped together.
As countries advance into the next cohort, the appropriate growth rate is applied.
Adoption and Deployment
Factors such as ease of integration, human talent, organization structures, policies, regulations,
and consumer acceptance can hinder or enable the timing and pace of adoption.
The mathematics of the Bass diffusion model is used to incorporate these factors.
The function includes parameters p and q, estimated through ordinary least square regression.
Scenarios for historic technology adoption curves are simulated.
Work Hours That Could Be Automated
The impact of automation on work hours is estimated by occupation and by activity.
The estimate considers the number of full-time equivalents (FTEs) and the percentage of
automation.
The impact is calculated for different capability levels.
Impact of Automation on Productivity
GDP per FTE is used as the measure of productivity.
Automation output is calculated by multiplying the estimated automation adoption rate by the
projected number of FTEs.
Several assumptions are made, including the substitution effect of automation and no
performance gains.
The additional GDP impact of automation is added to the 2022 GDP to estimate the productivity
impact of automation.
Acknowledgments
The research was led by various McKinsey partners and involved a project team of researchers
and consultants.
Special thanks are given to McKinsey colleagues and external advisers who contributed to the
research.
Introduction
The blog discusses the economic potential of generative AI as the next productivity frontier.
It highlights the collaboration between McKinsey practices in researching and producing the
report.
McKinsey's AI Arm: QuantumBlack
QuantumBlack, AI by McKinsey, helps companies transform using the power of technology and
industry experts.
With a team of practitioners, they work on solving important AI challenges.
McKinsey Digital
 McKinsey Digital drives transformation and helps organizations thrive in the digital age.
They provide services to harness data and AI, modernize technology, and fuel digital growth.
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The McKinsey Global Institute (MGI) provides a fact base for decision-making on critical
economic and business issues.
MGI aims for independent and fact-based research, funded solely by McKinsey partners.

Use Cases
transform roles and boost performance in functions such as
1. sales,
2. marketing,
3. customer operations, and
4. software development
5. Banking
6. Life Sciences

- Some who can run frontend specs:

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Styling CSS, Sass, Less CSS-in-JS, Styled Components

Responsive Design Yes Yes

User Interface (UI) HTML, CSS Native UI Components

User Experience (UX) Navigation, Interactions Gestures, Animations

Performance Page Load Time, Caching App Size, Memory Usage

Accessibility WCAG Compliance Accessibility Guidelines

Cross-Browser Support Chrome, Firefox, Safari Platform-specific

Cross-Platform Support N/A iOS, Android

Testing Unit Testing, UI Testing Unit Testing, UI Testing

Version Control Git Git

Frontend Specs

Specification Role

HTML (Hypertext Markup Defines the structure and content of web pages.
Language)

CSS (Cascading Style Controls the presentation and styling of web pages.
Sheets)

JavaScript Adds interactivity and dynamic behavior to web pages.

Responsive Design Ensures the website adapts to different screen sizes.

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browsers.

Accessibility Ensures the website is usable by people with disabilities.

Performance Optimization Enhances the website's speed and efficiency.

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Design

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Frameworks Laravel, Django, Ruby on Rails Spring Boot, Express.js, Flask

Database MySQL, PostgreSQL, MongoDB SQLite, Realm, Firebase

Server Apache, Nginx Node.js, Tomcat, Firebase

API Integration REST, SOAP, GraphQL REST, GraphQL

Authentication OAuth, JWT, Session-based OAuth, JWT, Firebase Auth

Caching Memcached, Redis Redis, Realm

Scalability Load balancing, Horizontal Cloud-based scaling,

scaling Containerization

Security SSL/TLS, Encryption SSL/TLS, Encryption

Performance Caching, Optimization Caching, Optimization

Testing Unit testing, Integration testing Unit testing, UI testing

Specification Role Played

Programming Determines the language used to write the backend code. Common languages include Python, Ruby, PHP, and
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Framework Provides a structured environment for developing web applications. Examples include Django (Python), Ruby on
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Database Stores and manages data for the website. Popular choices include MySQL, PostgreSQL, MongoDB, and SQLite.

Server Handles incoming requests and serves responses to clients. Common server software includes Apache, Nginx,
and Microsoft IIS.
APIs Enables communication between different software systems. APIs allow the backend to interact with external
services, databases, or other applications.

Security Measures Implements measures to protect the website and its data from unauthorized access, such as encryption,
authentication, and authorization.

Caching Improves website performance by storing frequently accessed data in memory, reducing the need for repeated
database queries.

Scalability Ensures the website can handle increased traffic and user load by implementing techniques like load balancing,
horizontal scaling, and caching.

Testing Involves writing and executing tests to ensure the backend code functions correctly and meets the desired
requirements.

Logging and Tracks and records events, errors, and performance metrics to identify issues and monitor the health of the
Monitoring website.

- run sales metrics , operations metrics

- drive marketing metrics and vision
- Do design ,UX and UX research
- Write product specs and give feedback on technical architecture
- Understand tech such as API design , AWS etc
- Drive business ,sales and product strategy
- Do data science , AI , ML

Secret key - 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