This McKinsey & Company report explores the development and adoption of advanced technologies including smart automation and artificial intelligence has the potential not only to raise productivity and GDP growth but also to improve well-being more broadly, including through healthier life and longevity and more leisure. Alongside such benefits, these technologies also have the potential to reduce disruption and the potentially destabilizing effects on society arising from their adoption.
Tech for Good: Smoothing disruption, improving well-being, examines the factors that can help society achieve such benefits and makes the first attempt to calculate the impact of technology adoption on welfare growth beyond GDP. Our modeling suggests that good outcomes for the economy overall and for individual well-being come about when technology adoption is focused on innovation-led growth rather than purely on labor reduction and cost savings through automation. This needs to be accompanied by proactive transition management that increases labor market fluidity and equips workers with new skills.