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Generative Artificial Intelligence: The European Potential
Generative Artificial Intelligence: The European Potential

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This blog discusses key points of insights written in the report: Embracing the Gen AI Opportunity by Strategy&.

The potential benefits of Gen AI are unevenly distributed across various sectors. Thus, the implementation of technology will increase the value-added differential depending upon sectors. Following examples are some of the use cases across various industries. While in some sectors the Gen AI use cases are already adopted while in other their implementation is on next steps.

Financial Services

Life Sciences

Manufacturing

Information and Communication Technologies

Customer Experience

AI training Phase

Research and Development

Localization

Product Personalization

New Drug Development Phase

Production

Improved Review

Investment Performance

 

Aftersales

Enhanced Privacy

Fraud Prevention and Risk Management

 

Connected Services

IP Protection

Operational Excellence

 

 

 

 

 

1. Gen AI has the potential to raise annual GDP growth in Europe by between 0.4% and 0.7% by 2030. It is supposed to add 1 trillion dollars to an economy which is right now forecasted to grow at the rate of 1.5% between now to end of this decade. It is based on 2 scenarios, 1 where they have assumed the Gen AI 40-50% of Gen AI driven productivity potential and Other on 80-90% of Productivity potential to factors including openness to innovation, a clear Gen AI strategy, or attractive location factors.

2.  a. High Impact Gen AI accelerators are 21% contribution of GDP of respective group of companies

  1. Gen AI aspirants have 40% contribution of GDP of respective group of companies
  2. Gen AI low potentials have 39% contribution of GDP of respective group of companies

3.  High Impact Accelerators:

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b. Gen AI aspirants 

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c.   Gen AI low potentials.

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4. Europe is among the adapting Gen AI countries such as Netherlands, France, Germany and Canada. It is lagging US, UK, Sweden, Belgium and Switzerland who are among the immediate Gen AI beneficiaries. Their exposure to High Impact Gen AI accelerators is also quite remarkable.

 

5. It has also given 10 success factors for smooth and effective Gen AI transition in Europe. It can be categorized into Corporate Openness, Funding and Investment, Innovation and technology friendly location factors and actionable regulatory guardrails.

 


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Madhumay
Deputy Manager - Research

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