Generative AI could boost Asia-Pacific economy by $4.5 trillion

New research by Accenture has revealed that responsible adoption of generative Artificial Intelligence (AI) could add an additional USD $4.5 trillion to the Asia-Pacific (APAC) economy over the next 15 years. This increase is projected to elevate annual GDP growth in the region by 0.7 percentage points. The research underscores the importance of integrating a people-centric approach to fully harness AI's potential.

The study's findings suggest that the economic value generated by responsible AI adoption is double that which would be achieved through aggressive implementation without significant investment in workforce development and process optimisation.

The research, which involves economic modelling and a Chief Experience Officer (CXO) survey across Australia, China, India, Japan, and Singapore, outlines several key insights. Notably, 33% of working hours across APAC are expected to be either automated or augmented by generative AI, contributing to a considerable boost in productivity. Australia and Japan are projected to see the most significant impact, with 45% and 44% of working hours affected respectively, followed by China (33%) and India (31%).

However, despite the anticipated productivity gains, there remains a gap in workforce readiness. While 96% of business leaders in APAC acknowledge the profound impact of generative AI, and 91% of workers express a desire to acquire new skills to work with the technology, only 4% of business leaders have implemented AI training at scale. Furthermore, although 89% of businesses plan to increase their AI expenditure this year, just 35% have prioritised workforce development investments.

The sectors poised to see the most significant transformation include Capital Markets, where nearly 71% of working hours are expected to be automated or augmented. The Software and Platform industry follows closely, with a 66% impact on working hours. Banking, Insurance, and Retail sectors are also expected to undergo substantial changes, with 64%, 62%, and 49% of working hours being affected respectively.

Leo Framil, CEO of Growth Markets at Accenture, emphasised the broader implications of generative AI adoption. "Generative AI has fast-tracked the data and AI-led reinvention journey for businesses. Yet, to fully harness its potential, leaders need to see it as more than just a tool for redesigning processes and driving cost efficiencies. It needs to be viewed as a value creation opportunity for businesses, people, and society," he said. Framil highlighted that the APAC region, home to over 50% of the world's population and a significant player in global technology innovation, has a unique opportunity to lead in responsible AI adoption.

Vivek Luthra, Data and AI Lead at Accenture Growth Markets, echoed this sentiment, noting, "The scaled implementation of generative AI could reinvent almost all functions across industries. The key to unlocking its real value lies in skilling. For businesses to maximise gen AI benefits and drive growth, leaders must extend their focus beyond immediate tasks and roles and embrace a long-term, people-centric approach."

Accenture recommends several strategic steps for businesses to take to fully leverage the potential of generative AI. These include leading and learning in new ways, reinventing work, reshaping the workforce, and preparing workers with market-relevant technical and soft skills. Leaders are encouraged to immerse themselves in the technology, rethink workflows, prioritise continuous talent reinvention, and facilitate smoother transitions from declining to emerging roles, thereby creating more time and capacity for higher-value activities.

Accenture's methodology involved breaking down jobs into tasks categorised by their potential for automation and augmentation, using machine learning and human verification to estimate the total hours saved based on the current state of generative AI. The study also explored likely job transitions and modelled GDP growth for different adoption scenarios across the APAC region.