ISTANBUL

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.

"A variety of recent studies have attempted to quantify the impacts of AI on GDP levels. These studies produced a broad range of estimates: AI could increase GDP by 1 percent up to more than 45 percent. The wide range reflects the high degree of uncertainty surrounding the economic characteristics of AI," the report stated.

It noted that AI is a potentially transformative technology often compared to the Industrial Revolution.

However, it said that in the first half of 2025 alone, AI-related investment increased GDP by an annualized rate of 1.3%, harkening back to the scale of railroad investment during the Industrial Revolution and seemingly ruling out the lowest few estimates.

It noted that the predictions are based on the assumption that AI could replace some, but not all, human labor and that in a scenario where artificial intelligence could perform all human tasks, economic growth would rise to 45% annually.

"Even before AI, different countries may be on different growth paths, with the United States exhibiting accelerating growth in potential GDP while growth in Europe and China is slowing," it added.