AI Productivity Could Boost Global Growth Beyond Current Expectations, Says BofA
Artificial intelligence could significantly accelerate global economic growth over the next decade, according to a new report from Bank of America. Analysts estimate AI may increase annual worldwide growth by as much as 1 percentage point, potentially raising average global growth from roughly 3.5% to 4.5%.
The report argues that AI-driven efficiency improvements across industries could become one of the most important economic forces of the coming years.
AI Is Already Improving Productivity Across Key Tasks
AI tools are currently delivering measurable productivity gains at the operational level.
According to the report:
- Productivity in software development has improved by as much as 55%.
- Writing and content-related tasks have seen efficiency gains of approximately 40%.
These improvements highlight AI’s growing ability to automate repetitive work, speed up workflows, and enhance output quality across professional sectors.
Why AI’s Economic Impact Remains Limited for Now
Despite strong gains within companies, AI’s influence on broader economic productivity remains relatively small.
Overall productivity growth across economies is increasing by only around 0.1% annually due to several barriers, including:
- Slow implementation across industries
- Workforce retraining requirements
- Skills shortages
- Regulatory challenges
- Infrastructure limitations
- Difficulties integrating AI into existing business workflows
These factors continue to delay the conversion of company-level AI efficiency into wider economic growth.
Global AI Adoption Continues to Accelerate
AI adoption has expanded rapidly worldwide, reaching approximately 64% across industries in 2025.
Regional adoption rates show clear differences:
- North America: 70% of companies actively use AI
- Europe, Middle East and Africa: 65%
- Asia-Pacific: 63%
Higher adoption levels may allow certain economies to benefit earlier from productivity improvements and stronger long-term growth.
AI Productivity Gains Could Be Far Greater Than Current Estimates
Bank of America believes AI may ultimately deliver a much larger economic impact than previous technological revolutions because of its broad applicability across industries.
As AI models improve and implementation costs decline, productivity gains could become up to ten times greater than current forecasts, according to the report.
This suggests the long-term economic benefits of AI may still be significantly underestimated.
AI Could Transform Innovation and Research
Beyond automating existing tasks, AI may improve innovation itself by accelerating research processes, generating ideas faster, and supporting product development.
The report suggests AI could move economies beyond a temporary productivity boost and instead contribute to sustained long-term productivity growth.
The U.S. and China May Benefit First
Countries with stronger AI ecosystems are expected to capture gains earlier than slower adopters.
The report identifies the United States and China as leading beneficiaries due to stronger AI deployment capabilities, while Europe and many emerging markets could lag behind.
Differences in regulation, adoption speed, and organizational readiness may create persistent productivity gaps between regions.
AI Growth Could Also Influence Interest Rates
Stronger productivity growth driven by AI may increase investment demand, potentially contributing to higher neutral interest rates in advanced economies.
Countries adopting AI more slowly may experience smaller long-term effects on growth and interest rates.
As artificial intelligence continues expanding across industries, its impact may extend far beyond corporate efficiency — potentially reshaping economic growth, competitiveness, and financial conditions worldwide.
