Study: AI has potential to increase German GDP by 13 per cent

DPA News on Diplomacy Pakistan News

Technologies and applications based on artificial intelligence (AI) could lead to an enormous increase in economic output in Germany, a study released on Thursday says.

If AI were to be used across the the board in German companies, then gross domestic product growth of more than 13 per cent by 2025 compared with 2019 is “realistic,” the joint study by the German Association of the Internet Industry (eco) and the management consultancy Arthur D Little said.

The study authors calculated a total potential for systematic AI application of approximately 488 billion euros (541 billion dollars).

Of that sum, 330 billion euros were accounted for by cost savings and 150 billion euros by sales potential. In most cases, fears of job loss due to AI are unfounded, the study said.

According to the study, which was supported by the Vodafone Institute, “over 70 per cent of AI-supported applications by 2025 do not replace employees, but rather strengthen value creation and the competitive position in cooperation with employees.”

The study examined a total of 150 use cases of AI – ranging from automated expense reporting by photographing the document to automated supplier analysis.

In certain areas, the performance of AI systems will exceed human capabilities, for example in speech recognition, the identification of objects or language translations, it said.

In other areas, the performance potential of AI systems in the period scope of the study was well below human performance, for example in software development for autonomous driving, the authors added.