AI to boost APAC economic output by 14.7% by 2035: PwC
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The news: PwC has found that over $11 trillion is expected to change hands in 2025 as AI is integrated into business value chains, a report to be released on Wednesday finds.
The numbers: The new research from PwC has found that AI-driven productivity growth could see the global economy growing by as much as 15% by 2035.
40% of the $11 trillion expected to change hands could be generated in the Asia Pacific region, equating to around $4.69 trillion in 2025 alone.
The context: PwC’s report, titled ‘Value in Motion’ reveals that the global growth dividend from AI is not guaranteed and depends on more than just technical success, but responsible deployment, clear governance and public and organisational trust.
In scenarios tested by PwC using lower trust and co-operation variables, the incremental boost to the economy from AI would be more muted at 8%, or as low as 1%.
PwC’s research shows that while AI is set to accelerate growth, the costs of physical climate threats will impose economic constraints. The Insurance Council of Australia estimates that extreme weather costs have more than doubled in the past five years, reaching an average of $4.5 billion annually, largely due to rising flood costs. PwC’s economic modelling suggests that physical climate impacts could leave the global economy nearly 7% smaller by 2035 in all scenarios than it would have been otherwise.
What they said: Chief economist at PwC Australia, Amy Lomas, says this research quantifies the opportunity for Australian businesses and the need for a rapid uptake of responsible AI: “Getting the balance right between going fast and building trust in these new platforms will be critical. It’s less about the technology itself and more about how individual organisations engage with it and embed it. We will only reap the rewards if we have the scaffolding in place to trust the technology on a global scale,”
“Australia has more to gain than most – we have the combined pressures of an especially tight labour market; a dramatic shift in our working age population; vulnerability to the physical climate risks of fire, flood, storms and heat; and significant growth in human services demand – primarily aged, health and disabilities care.”
The source: PwC Value in Motion report
