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Climate risks could shrink global economic growth by 2035 by 7 percentage points
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So that opportunities can be compensated for by AI negative consequences of climate change, more confidence in AI and more interdisciplinary ecosystems are necessary
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Transformation pressure on companies increases-$ 7.1 trillion in added value this year alone affected
Artificial intelligence could increase global economic growth by 2035 by up to 15 percentage points – an impulse comparable to the industrial revolution. However, in order for AI to develop its full economic potential, it must be considered safe, reliable and compliant in accordance with ethical standards. If this trust – both in companies and in public – lacks the additional growth potential depending on the scenario to 8 percentage points up to only 1 percentage point. So one of the core results of the current Value in Motion study by PWCthat evaluates the effects of megatrends with a data -based scenario analysis.
According to the author: Inside the study, climate risks could slow global economic growth over 7 percentage points in the next ten years. “The potential of AI makes it possible to overcompensate climate risks despite increasing energy needs – provided that politics and companies quickly manage to strengthen the trust of society into technology”comments Rudolf Krickl, CEO from PWC Austria.
Growth arises where companies are realizing
At the same time, the global economy faces a profound transformation. This year alone, around $ 7.1 will shift in sales between companies and industries-without taking into account the recent customs announcements from the USA.
According to the study, many industries will be realized in the next ten years and will develop into new ecosystems that are less oriented towards classic industry boundaries. One example is the mobility sector in which car manufacturers, energy companies, battery producers and technology companies cooperate more closely in order to bundle their skills.
“Geopolitical and economic tensions make short -term planning more difficult – but do not change the long -term trends”, so Rudolf Krickl. “Technological innovation, climate change and new consumption habits continue to determine how companies create value. Anyone who moves flexibly in networked ecosystems in the future has a clear advantage.”
The full study in the English original can be found at: https://www.pwc.com/gx/en/issues/value-in-motion.html
About the study
In order to evaluate the future effects of AI and climate change, qualitative scenarios were developed, quantitative models were calculated and combined with expert assessments. The basissario is based on GDP forecasts of the “Shared Socioeconomic Pathway”. GDP adjustments to climate risks were based on scientific research. Various degrees of the KI introduction and their economic effects were calculated in the AI model. The interaction model between the climate and AI examines the correlation between AI adoption, energy consumption and emissions.
The study author: Inside, a total of three scenarios-“Trust-based transformation”, “Tense Transition” and “Turbulent Times” (see graphic). It can be read as follows (using the example “Trust-based transformation”): 25.9 % GDP base growth plus 14.7 % Additional growth potential through trust-based AI use minus climate impact-reduced basic growth.
About PWC
PWC sees it as its task to build social trust and solve important problems. More than 370,000 employees in 149 countries contribute to this with high-quality, industry-specific services in the areas of auditing, tax and management consultancy. Find out more under www.pwc.at.
The term PWC refers to the PWC network and/or one or more of the legally independent network companies. More details under www.pwc.com/structure.