ARTIFICIAL intelligence is still much misunderstood in this digital age. The benefits that can be harvested from using AI responsibly however are immense. AI has come into many new fields–health, legal, HR–and has the capacity even for economic growth and nation building.
A study by Accenture released recently revealed the staggering economic potential of generative artificial intelligence (Gen AI) in the Asia-Pacific (APAC) region. According to the research, responsible and widespread adoption of this transformative technology could inject an additional $4.5 trillion into the APAC economy over the next 15 years, translating to an average annual GDP growth of 0.7 percent.
This substantial economic boost stems from Gen AI’s potential to automate or augment a significant portion of working hours across the region.
The research highlights a 33 percent average reduction in working hours across APAC due to automation and augmentation, with a more pronounced impact predicted in Australia (45 percent) and Japan (44 percent). China and India are also expected to see significant changes, with 33 percent and 31 percent of working hours affected, respectively.
Accenture’s analysis delves deeper into the specific industries poised for transformation.
Capital Markets is projected to experience the most substantial impact, with 71 percent of working hours affected by Gen AI. Other industries with a high potential for disruption include Software and Platforms (66 percent), Banking (64 percent), Insurance (62 percent), and Retail (49 percent).
To arrive at these figures, Accenture employed a rigorous economic modelling methodology. The process involved breaking down jobs into individual tasks, tagging them for their automation and augmentation potential, and estimating the time savings achievable with the current state of Gen AI.
Researchers then analyzed likely job transitions based on historical data and modeled different adoption scenarios, considering factors like innovation focus, adoption pace, and talent displacement. Finally, GDP growth for each geography was modeled from 2023 to 2038 under each scenario and compared against baseline GDP growth projections.
While the potential for economic growth is immense, the study also highlights a critical gap between awareness and readiness. Although 96 percent of APAC business leaders recognize Gen AI’s potential impact and 91 percent of workers are eager to acquire new skills to work with it, only 4 percent of business leaders have implemented Gen AI training at scale. This highlights a significant opportunity for organizations to invest in upskilling and reskilling their workforce to fully capitalize on Gen AI’s benefits.
Accenture’s CEO of Growth Markets, Leo Framil, emphasizes the need to view Gen AI as more than just a tool for process redesign and cost efficiency. He advocates for recognizing its potential as a value creation opportunity for businesses, people, and society. With its significant global economic influence and strong focus on technological innovation, the APAC region is well-positioned to lead the way in responsible AI adoption.
Vivek Luthra, Data and AI Lead at Accenture Growth Markets, further underscores the importance of a people-centric approach. “To truly unlock the potential of Gen AI, leaders must prioritize workforce development alongside technology investment,” he states. “By focusing on skilling and reskilling, organizations can ensure a smooth transition to a future where humans and machines work together to drive innovation and economic growth.”
The study’s findings have far-reaching implications for the ASEAN region as well. While the research primarily focused on larger economies, the transformative power of Gen AI is equally relevant for countries like Indonesia, the Philippines, Malaysia, Singapore, and Thailand. By embracing this technology and investing in their workforce, ASEAN nations can leverage Gen AI to drive economic growth, boost productivity, and enhance their competitiveness on the global stage.
The potential of Gen AI requires a holistic approach that combines technological investment with a strong focus on workforce development. By investing in the skills of their people and embracing a culture of continuous learning, APAC businesses can position themselves to thrive in the age of generative AI and contribute to a future where technology and human ingenuity work hand in hand to drive economic prosperity.
