KUALA LUMPUR : Artificial intelligence (AI) holds the potential to boost global gross domestic product (GDP) by as much as 15 percentage points by 2035, according to professional services firm PricewaterhouseCoopers (PwC).
This projected uplift is equivalent to an additional one percentage point in annual global growth — comparable to the economic expansion seen during the 19th-century industrial revolution, the firm noted in a statement on Tuesday.
The findings are part of PwC’s latest report titled Value in Motion, which employs data-driven scenario analysis to explore AI’s future economic impact. However, the report cautions that the full realisation of these benefits hinges on responsible technological deployment, strong governance frameworks, and broad-based public and institutional trust.
“Without sufficient trust and cooperation, the growth boost from AI could be significantly reduced — potentially limited to just 8%, or even 1% in more pessimistic scenarios,” the report stated.
Intense Reinvention Pressure Across Industries
PwC’s analysis also highlights an unprecedented urgency for business transformation, with 17 out of 22 global industries currently facing reinvention pressures at their highest levels in 25 years.
In 2025 alone, revenue worth US$7.1 trillion (approximately RM31 trillion) is expected to shift among companies, even without accounting for the impact of global trade frictions and tariff escalations.
Industries are expected to undergo significant reconfiguration over the coming decade, forming new economic “domains” that transcend traditional sectoral boundaries. The firm cited the electric vehicle (EV) sector as a key example, where collaboration across electricity providers, battery manufacturers, and technology firms is reshaping the mobility landscape beyond the remit of conventional automakers.
“As the structure of the global economy evolves, organisations that successfully bridge traditional industry lines and address shifting consumer demands through technology will be best placed to unlock transformative growth,” said PwC Global Chairman Mohamed Kande.
Climate Risks May Offset Growth Gains
Despite AI’s transformative growth potential, physical climate threats may constrain long-term economic expansion, PwC warned. The firm’s modelling projects that unchecked climate risks could result in a global economy up to 7% smaller by 2035 compared to a scenario without such disruptions.
In addition, while AI is expected to spur greater energy usage — particularly in data centre operations — modest applications of AI in enhancing energy efficiency could neutralise the net impact on emissions.
PwC estimates that if each incremental percentage point in AI adoption led to just a 0.1% reduction in energy intensity, the resulting balance in energy use and environmental impact would be neutral.
–The Edge Malaysia
