AI overall could provide a 22 percent GDP boost worth millions to the UK economy, according to the research.

However, the report warns that firms which do not integrate AI into their day-to-day business risk around 20 percent of their cash flow today.

In separate research last year, McKinsey wrote:

“By 2030, the average simulation shows that some 70 percent of companies might have adopted at least one type of AI technology but that less than half will have fully absorbed the five categories [computer vision, natural language, virtual assistants, robotic process automation, and advanced machine learning].”

The UK is well-positioned to take advantage of AI and is the highest ranking country in Europe on McKinsey Global Institute’s AI Readiness Index. However, the country falls behind the US and China.

Productivity growth in the UK has been weak over the past decade. McKinsey and Quantumblack believe that adopting AI would provide a “welcome boost”.

The UK has become a hotspot for AI with global interest in companies such as DeepMind and Swiftkey. With leading universities, the UK also helps to fill the global skill shortage in artificial intelligence roles.

Helen Mayhew, COO at Quantumblack, said: “We need to be proactive in both the development and diffusion of AI technologies to stop the gap widening.

“The UK is well-positioned to take advantage of these opportunities, and so the potential rewards for businesses and society more broadly are significant.”

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The simulation run by the McKinsey Global Institute shows artificial intelligence has the possibility to add 1.2 percent to annual gross domestic product growth until at least 2030.

For perspective, that represents $13 trillion of additional global economic activity. Such growth is equivalent to other landmark developments such as that of the steam engine.

AI is among the most sought-after technologies globally. Much like 5G, countries are vying to become leaders in the space.

Russian President Vladimir Putin recently said:

“Artificial intelligence is the future, not only for Russia, but for all humankind. It comes with colossal opportunities, but also threats that are difficult to predict.

Whoever becomes the leader in this sphere will become the ruler of the world.”

China and the US, the world’s largest economies, are the other major players in the AI race who aim to fully utilise the rapidly advancing technology in order to retain their lead.

Beijing has already set out its five-year plan which includes AI. The nation aims to be a leader by 2030.

Compared to the global average, China’s labour productivity is low and the economy is becoming reliant on consumption. Without AI, it’s likely the country will struggle to achieve its target growth rate.

Despite the economic benefits. there continues to be a concern about AI increasing wealth inequality.

“The productivity-enhancing, labour-saving technology is a challenging issue for all of the economies in the world,” Takashi Miwa, chief Japan economist at Nomura, said at a press briefing on Tuesday.

Like many experts, Miwa believes AI poses a threat to low-skilled jobs.

There will also be a severe disparity between countries. According to the McKinsey analysis, developed countries – likely to emerge as AI leaders – are set to benefit economically 20 to 25 percent more than current levels.

Emerging markets could only gain half of that, according to the report.

Are you surprised by the prediction?

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