Increases in capital and labor are no longer driving the levels of economic growth the world has become accustomed to and desires. Fortunately, a new factor of production is on the
horizon, and it promises to transform the basis of economic growth for countries across the world.
There has been marked decline in the ability of increases in capital investment and in labor to propel economic progress.
These two levers are the traditional drivers of production, yet they are no longer able to sustain the steady march of prosperity enjoyed in previous decades in most developed economies.
But long-term pessimism is unwarranted. With the recent convergence of a transformative set of technologies,
economies are entering a new era in which artificial intelligence (AI) has the potential to overcome the physical limitations of capital and labor and open up new sources
of value and growth.
Indeed, Accenture analyzed 12 developed economies and found that AI has the potential to double their annual economic growth rates by 2035. To avoid missing out on this opportunity, policy makers and business leaders must
prepare for, and work toward, a future with artificial intelligence. They must do so not with the idea that AI is simply another productivity enhancer. Rather, they must
see AI as the tool that can transform our thinking about how growth is created.