The Projected Impact of Generative AI on Future Productivity Growth — Penn Wharton Budget Model
This Wharton Budget Model article analyzes how generative AI adoption may affect long-term productivity growth, weighing the potential efficiency gains against workforce challenges and measurement complexities. Connect with Sound Power Solutions to discuss what these shifts could mean for your business strategy.
Generative AI is expected to increase productivity and GDP by approximately 1.5% by 2035, nearly 3% by 2055, and 3.7% by 2075. The strongest boost to annual productivity growth is anticipated in the early 2030s, with a peak contribution of 0.2 percentage points in 2032.
Around 40% of current GDP could be significantly impacted by generative AI, with occupations at the 80th percentile of earnings being the most exposed. Approximately half of the work in these high-earning jobs is susceptible to automation by AI.
Long-term Effects of AI Adoption
While AI's boost to productivity growth is projected to peak in the early 2030s, its long-term effect will result in a permanent increase in total factor productivity (TFP) levels, estimated to be around 1.5% higher by 2035, 3% higher by 2055, and 3.7% higher by 2075 compared to a scenario without AI.
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The Projected Impact of Generative AI on Future Productivity Growth — Penn Wharton Budget Model
published by Sound Power Solutions
We are an technology managed service and software development firm with successful experience assisting a myriad of businesses. We have experience in the human resources, healthcare, assisted living , financial management, and warehouse management sectors. We provide consulting and managed solution services to help our clients at all phases of implementing technology. This includes:
- Helping to manage your office IT environment (computers, networks, and productivity software)
- Implement and manage productivity and communication solutions such as Microsoft 365
- Developing a technology roadmap to meet your team's growing needs
- Building software and systems to help implement your roadmap
- Helping you support and maintain your custom software solutions
- Providing training in security and general software usage
At Sound Power Solutions, our goal is to always find the right solution to power your team. We leverage our team's deep experience in IT support, business analysis, systems engineering, software engineering, data development & management, and project management to make that happen for each of our clients.
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