{
  "id": 16570041,
  "title": "AI Could Generate $2.52 Trillion Annually, But Rising Deployment Costs May Erase $850 Billion In Economic Value",
  "url": "https://urgent.news/2026/10/26/ai-could-generate-2-52-trillion-annually-but-rising-deployment-costs",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-26T06:41:37.000Z",
  "source": {
    "name": "Free Press Journal",
    "slug": "free-press-journal",
    "url": "https://www.freepressjournal.in/tech/ai-could-generate-252-trillion-annually-but-rising-deployment-costs-may-erase-850-billion-in-economic-value"
  },
  "original_language": "en",
  "account": "New Delhi: A recent report from McKinsey highlights the potential of artificial intelligence (AI) to generate $2.52 trillion in annual economic value globally, yet rising deployment costs could diminish these benefits, potentially erasing $850 billion in value, according to new findings. The report, titled \"The AI Value Curve: The Economics of Applying AI to Existing Work,\" reveals a widening gap between the swift adoption of AI technologies and the economic value corporations can actually realize. McKinsey's analysis indicates that a 30% surge in the effective cost of AI deployment could cut $850 billion from the technology's projected annual global impact, reducing it from $2.52 trillion to $1.67 trillion. In the United States, the economic value generated by AI could plummet from $960 billion to $640 billion if costs increase similarly. McKinsey cautions that these figures represent hypothetical models rather than predictions of future events. The research comes amid significant investments in AI infrastructure, software, and automation technologies, with global spending on AI infrastructure expected to reach $7 trillion by 2030. The financial services sector stands to gain the most from AI adoption, with an estimated $530 billion in annual economic benefits, followed by education ($410 billion), technology, media, and telecommunications ($360 billion), and healthcare ($310 billion). The report also challenges the notion that AI's main function is to replace low-wage workers, suggesting that AI can enhance productivity and decision-making for professional roles in industries like law, healthcare, management, and computer-related fields.",
  "summary": "New Delhi: Artificial intelligence (AI) has the potential to generate $2.52 trillion in annual economic value worldwide by automating and enhancing existing work processes, but rising deployment costs could significantly reduce those benefits, according to a new report by consulting firm McKinsey. Also Watch: The report, titled The AI Value Curve: The Economics of Applying AI to Existing Work,…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}