Artificial intelligence (AI) could increase worldwide economic production by as much as 15 percentage points and in Africa by up to 4.9 percentage points within the coming ten years.
This would essentially increase annual growth rates by one percentage point, comparable to the boost experienced globally starting from the 19th-century Industrial Revolution, according to recent PwC research.
The report titled “Value in Motion” by PwC is grounded in data-backed scenario analysis. It indicates that the anticipated worldwide economic boost due to artificial intelligence isn’t assured; instead, it relies heavily on factors beyond mere technological advancement—such as ethical implementation, robust governance frameworks, and mutual confidence among both the general populace and organizations.
In other situations examined by PwC, marked by reduced trust and collaboration, the additional increase in the worldwide economy due to AI would be less pronounced, reaching only 8% under certain conditions, or as low as 1% in a more negative outlook.
The study reveals that swift restructuring within the economy is currently underway. According to PwC’s analysis, the urgency for companies to transform themselves reaches peak levels not witnessed since the past 25 years in six out of nine industries across Africa.
This same study identified $150.54 billion in revenues in Africa expected to change hands among companies as early as 2025, before the recent escalation in global tariffs.
According to PwC’s findings, industries will undergo significant restructuring over the coming ten years to address human requirements through novel approaches. This transformation will result in the emergence of fresh ‘domains’ that transcend conventional sector boundaries. As an illustration, the growth of electric cars is integrating energy suppliers, battery producers, technology companies, and more into the realm of transportation. Consequently, these entities can generate value together with automotive makers.
Dion Shango, CEO of PwC Africa, states: “With the transformation of economic structures, organizations that can bridge traditional industry boundaries will be sources of greater value. Business leaders who concentrate on evolving customer requirements and leverage technology to fundamentally alter how businesses function have the potential to achieve significant growth.”
PwC’s analysis indicates that although AI is poised to boost growth, the expenses related to physical climate risks will create economic limitations. According to their economic modeling, physical climate effects might result in the African economy being more than 12% (globally: 7%) smaller in size by 2035 compared to what it would have been without these impacts.
Greater uptake of artificial intelligence is anticipated to result in higher energy consumption by data centers. Nonetheless, limited application of AI for enhancing energy efficiency might compensate for this rise in energy usage.
According to PwC, the overall effect of artificial intelligence on energy consumption and emissions could balance out if every percentage increase in AI usage drives innovations resulting in a global reduction of energy intensity by merely 0.1%.
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