ARTIFICIAL INTELLIGENCE AND THE FUTURE OF US COMPETITIVENESS: SECTORAL IMPACTS, WORKFORCE TRANSITIONS, AND POLICY CHALLENGES

Satyadhar Joshi ()
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Satyadhar Joshi: Alumnus I-MBA Bar Ilan University, Israel.

Abstract: This paper provides a comprehensive analysis of Artificial Intelligence's impact on U.S. economic competitiveness through six key dimensions. First, we examine AI's macroeco-nomic effects, synthesizing projections that estimate potential contributions of $4.8-$19.9 trillion to global GDP by 2030, with annual productivity growth ranging from 0.5-1.3%. Second, we analyze labor market transformations, where 20-40% of jobs may be affected, creating both displacement risks and opportunities for workforce augmentation. Third, we investi-gate the intensifying geopolitical competition in AI, particularly between the U.S. and China, where military AI markets are projected to reach $38.5 billion and $32 billion respectively by 2030. Fourth, we evaluate sector-specific impacts, highlighting manufacturing efficiency gains of 15-30% and small business productivity improvements up to 25%.

Keywords: Productivity; Automation; Competitiveness; Labor Markets; Geopolitics; Policy; Digitalization; Economic Growth; Artificial Intelligence; Artificial Intelligence Economic Growth Competitiveness Automation Productivity Labor Markets Geopolitics Policy Digitalization Innovation; Innovation (search for similar items in EconPapers)
Date: 2025
Note: View the original document on HAL open archive server: https://hal.science/hal-05212339v2
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Published in International Journal of Research in Commerce and Management Studies, 2025, 07 (04), pp.76-110. ⟨10.38193/IJRCMS.2025.7405⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05212339

DOI: 10.38193/IJRCMS.2025.7405

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