Generative AI could boost Dutch economy by €85 billion

22 March 2024 Consultancy.eu 3 min. read

Generative AI (GenAI) is touted to revolutionise productivity levels and increase global economic growth, thanks to the huge value it can bring to wide range of industries. If widely adopted in the Netherlands, the emerging technology could boost the country’s GDP by $85 billion over the next 10 years. That is according to a report from Implement Consulting Group.

If the Netherlands moves to adopt GenAI in a variety of forms and in different industries, fully taking advantage of the value the new technology has to offer, it could mean a 9% increase in the country’s GDP over the coming decade, according to the report commissioned by Google.

The majority of that new value would come from a major boost in productivity, as workers are freed up from time-consuming and repetitive tasks. There will also be significant re-employment to other, more value-creating activities as AI automates a variety of functions in many areas.

Potential impact of generative AI on GDP in the Netherlands

Source: Implement Consulting Group

Overall, the productivity effect of GenAI in the Netherlands is estimated to be equivalent to 1.5% annually. In fact, the potential for GenAI is so great that Holland’s future economic growth could exceed current estimates. The authors suggest that if adoption is successful, economists will be poised to raise their long-term GDP growth forecasts from as early as 2028.

The Dutch Ministry of Economic Affairs has signaled that certain sectors are more primed for adopting artificial intelligence and its little sister, generative AI. Those include agriculture and food, logistics and transport, and the ICT sector.

The public sector is another area where GenAI is expected to have a major impact. Public administration, education, and healthcare are all expected to benefit significantly from GenAI efficiency boosts.

Productivity boost from generative AI

Source: Implement Consulting Group

The impact on jobs?

Extensive adoption of GenAI in the Netherlands is likely to have a large impact on the local job market. The lion’s share of jobs in the Netherlands (67% – or 6.5 million jobs) will be exposed to GenAI changes and employees will likely work with the new technology, with a role in helping create content.

Beyond that, 26% of jobs are likely to not be exposed to automation at all. Those are areas like manual labor and human-to-human tasks. As far as the negative side, only 7% of jobs were expected to be fully or partially replaced by GenAI in the Netherlands, according to the report.

Share of jobs exposed to automation by generative AI

Source: Implement Consulting Group

“The Netherlands is well placed for generalized AI use and early phases of adoption. Despite its robust AI talent pool, the Netherlands has yet to transform its lead in AI talent to commercial ventures and startup activity,” said Martin Thelle, partner at Implement Consulting Group.

“The Netherlands needs a strong focus on innovation and an international outlook to propel its competitive edge into the generative AI era.”

With AI tools (and specifically GenAI tools like ChatGPT) taking the world by storm, there is currently a race to adopt AI among companies that do not want to get left behind. However, on the other hand, there has also been some hesitance due to the anticipated impact of looming new regulations, like the EU’s AI Act or the AI Bill of Rights in the US.