OECD Highlights AI’s Potential to Revive Global Productivity
Investments in artificial intelligence (AI) have surged in recent years, driven by high expectations for its transformative impact on technology, economies, and labor markets. According to a new OECD report, AI could become a cornerstone of economic growth, particularly in countries that integrate it deeply into their industries.
AI: A Path to Economic Growth
The OECD’s analysis underscores AI’s ability to reverse stagnating productivity trends in regions like Europe, where countries such as Spain, Italy, and Germany have faced decades of sluggish growth. By implementing AI in industrial processes, these nations could see a revitalization of productivity rates, a key driver for economic expansion.
In contrast, projections for the United States are more optimistic. Over the next decade, AI is expected to boost U.S. labor productivity by 0.4 to 0.9 percentage points annually, while the European Union faces less promising prospects. In 2023, EU productivity declined by 1%, whereas the U.S. experienced a 0.5% growth, reflecting divergent adoption rates.
Faster Adoption Equals Greater Gains
The U.S. leads the charge in adopting AI, with businesses rapidly integrating the technology into automation workflows. Adoption rates in the U.S. are expected to reach 40% within a decade. In Europe, however, adoption could lag significantly due to resistance from companies and workers, slowing the continent’s progress.
Barriers to Adoption
AI adoption across OECD nations remains low, with only 5% to 15% of companies currently utilizing AI tools. Despite this, the report projects adoption rates of 23% in conservative scenarios and over 40% in optimistic forecasts.
The resistance stems from several factors, including workforce apprehensions and the lack of widespread understanding of AI’s benefits. These barriers may widen the gap between early adopters and lagging industries.
Uneven Productivity Gains Across Sectors
The OECD equates AI’s potential to revolutionary innovations like the steam engine, electricity, or the internet. Certain sectors stand to benefit disproportionately, with software development productivity potentially increasing by over 50%. Customer service and business consulting could see gains of 14% and 40%, respectively.
However, manufacturing, construction, and agriculture are less adaptable to AI automation, with limited opportunities for technological integration. These disparities mirror predictions from the World Economic Forum’s report on AI’s impact on jobs.
AI and Robotics: A Unified Strategy
To ensure productivity gains reach all sectors, the OECD recommends pairing AI with robotics. By equipping AI with physical capabilities, such as robotic arms, it could extend its utility to manufacturing lines and other labor-intensive industries.
This combined approach could create sustained and inclusive productivity growth, preventing sectors like IT, financial services, and sales—already well-positioned for automation—from monopolizing the benefits.
While AI holds immense potential for global productivity, its success depends on widespread adoption, complementary technological development, and addressing barriers that currently hinder its implementation across industries.
