Washington: Artificial intelligence (AI) could increase gross domestic product (GDP) by 1% to 45%, according to a report released Wednesday by the White House Council of Economic Advisors. The report highlights the potential of AI as a transformative technology, akin to the Industrial Revolution, with significant implications for economic growth.

According to Anadolu Agency, the report states that various studies have attempted to quantify the impact of AI on GDP, resulting in a wide range of estimates. The uncertainty surrounding the economic characteristics of AI contributes to this broad spectrum of potential outcomes. The report notes that in the first half of 2025, AI-related investments have already boosted GDP by an annualized rate of 1.3%, drawing parallels to the scale of railroad investment during the Industrial Revolution.

The report also discusses the assumptions underlying these predictions, notably that AI could replace some, but not all, human labor. In scenarios where AI could perform all human tasks, economic growth could potentially rise to 45% annually. Additionally, the report points out that different countries may experience varying growth paths, with the United States showing accelerating potential GDP growth, while Europe and China face slower growth trends.