This exploration of the potential economic impact of generative articifial intelligence (AI) looks at relevant economic theories and emerging evidence. It highlights the potential for generative AI to drive economic growth and innovation but also acknowledges the need to address potential negative impacts such as job displacement and increased inequality. 

The report finds that generative AI adoption is occurring much faster than earlier technologies and has already demonstrated significant productivity increases across a range of tasks. However, the report acknowledges that the long-term labour market impacts of generative AI remain unclear, noting potential job displacement and the potential exacerbation of existing inequalities due to the skill-biased nature of AI adoption.

Key Findings

• Generative AI is being adopted at a much faster rate than earlier technologies, suggesting its potential as a General Purpose Technology (GPT).
• Generative AI can significantly boost productivity across various tasks.
• Generative AI has the potential to accelerate innovation.
• The adoption of generative AI is unequal, with higher adoption rates among younger, more educated, higher-income, and male workers, suggesting it could be a skill-biased technology.
• While AI is being used to perform tasks previously done by workers, there is no evidence yet of widespread job loss due to AI.