How AGI Will Transform Economic Growth

Artificial general intelligence (AGI) promises a new era of economic expansion, driving productivity gains, reshaping labor markets, and unlocking value across industries. In this post, we explore key drivers of AGI-powered growth, examine quantitative projections, and discuss the policy and business actions needed to harness these opportunities.

Productivity Breakthroughs and GDP Uplift

AGI stands to deliver unprecedented productivity improvements by automating complex cognitive tasks, optimizing supply chains, and accelerating R&D. A landmark PwC study estimates that by 2030, AI (across all types) could add $15.7 trillion to the global economy—equivalent to more than the current output of China and India combined—of which $6.6 trillion will stem from enhanced productivity alone (PwC). Further, new PwC research projects that responsible AI adoption could boost global GDP by an additional 15 percentage points by 2035, effectively adding one point to annual growth rates—on par with gains from 19th-century industrialization (PwC).

Sectoral Shifts and Value Distribution

Not all sectors will benefit equally. Professional services, finance, and information technology are early adopters, experiencing productivity growth rates of up to 4.3% between 2018 and 2022, compared to just 0.9% in manufacturing and retail (Reuters). AGI’s ability to analyze vast datasets and generate insights will particularly transform:

• Healthcare: accelerating drug discovery and personalized medicine
• Manufacturing: enabling smart factories and predictive maintenance
• Services: powering virtual assistants and automated customer support

Projected Global GDP Boost from AGI

Labor Market Transformation

While AGI will create new high-skill roles—such as AI ethicists, data curators, and machine-training specialists—it may displace up to 40% of existing jobs, particularly routine and repetitive tasks (MIT Sloan). Governments and businesses must invest in:

1. Reskilling programs to transition workers into AI-complementary roles
2. Lifelong learning platforms to keep pace with rapid technological change
3. Social safety nets that support displaced workers without stifling innovation

Challenges and Policy Imperatives

Realizing AGI’s potential requires responsible deployment and robust governance frameworks. Key considerations include:

• Ethical safeguards: to prevent bias and ensure transparency
• Data privacy: balancing innovation with individual rights
• Infrastructure investment: expanding computing power and connectivity
• Regulatory coordination: aligning international standards to manage cross-border AI risks

Call to Action

Businesses should begin pilot AGI projects now—partnering with research institutions and AI providers to identify highest-impact use cases. Policymakers must collaborate with industry to develop clear guidelines that promote innovation while protecting workers and consumers.

By proactively addressing these dimensions, we can guide AGI toward becoming a generational driver of prosperity rather than disruption.

References

• PwC. 2017. Global Artificial Intelligence Study: Sizing the Prize. (PwC)
• PwC. 2025. “AI Adoption Could Boost Global GDP by an Additional 15 Percentage Points by 2035.” Press Release, April 29, 2025. (PwC)
• McKinsey & Company. 2023. “The Economic Potential of Generative AI: The Next Productivity Frontier.” (McKinsey & Company)
• PwC. 2024. “AI-Intensive Sectors Are Showing a Productivity Surge.” Reuters, May 20, 2024. (Reuters)
• International Monetary Fund. 2023. World Economic Outlook, October 2023. (MIT Sloan)