AI set to drive trillion-dollar growth by 2030

Direct, indirect, and induced spending in AI is driving significant economic growth.
AI could add $19.9 trillion to the global economy by 2030, a study reveals.

AI is forecast to add a cumulative $19.9 trillion to the global economy by 2030, according to a recent IDC study. This growth includes direct revenue from AI companies and investments in infrastructure. By that year, AI-related activities could contribute 3.5% to global GDP.

IDC reports AI spending will involve direct, indirect, and induced categories. Direct spending includes revenue from AI companies and their investment in hardware, while indirect spending covers the construction of data centres and related hiring. Induced spending, meanwhile, represents the broader economic impact of AI advancements.

Every dollar invested in business-related AI solutions in 2030 is expected to generate $4.60 into the global economy. However, IDC’s analysis does not cover potential changes in jobs or wages, which many believe AI adoption could affect.

A survey from IDC revealed that 48% of workers expect part of their roles to be automated within two years. While job automation is a significant concern, full automation remains rare, with only 3% expecting their jobs to be completely automated.