The AI innovation opportunity in France

AI offers a pivotal opportunity to accelerate innovation by fostering new businesses, increasing productivity, and advancing scientific discovery. In the AI era, French businesses must embrace a mindset of innovation and leverage cutting-edge technology to remain competitive.

An Implement Consulting Group study, developed in collaboration with economist Antonin Bergeaud from HEC in Paris, for Google, examines how AI can accelerate innovation in France. It builds on last year's findings that estimated a 9% (EUR 220 billion) GDP boost from AI adoption in ten years. It provides insights into strategic AI initiatives that can revitalise Europe and France’s economic landscape and outlines opportunities across three dimensions:

Key findings of the study

• Producing AI: Expanding AI production in France represents a EUR 30-50 billion opportunity by 2034, with 70% in applications and services. France’s industrial base and its 3-4% share of global AI application funding give it a strong position.
  
• Inventing with AI: AI could unlock EUR 35-40 billion annually in R&D innovation by 2034, doubling solution quality and raising efficiency by 10–20% varying by domain. Europe and France face weaker R&D returns than the US, but AI can reverse this trend.
• Commercialising AI: France needs more innovative digital businesses to commercialise the AI innovation potential, estimated to drive 35-45% of France’s 65-90 billion AI innovation opportunity. These businesses are critical for creating, diffusing, and accelerating transformative AI innovations across key sectors.

The EUR 65-90 billion AI innovation potential is both a stepping stone and an amplifier for the broader economic opportunity from generative AI adoption in France. Developing AI models and applications is the stepping stone, while AI-driven acceleration of research will amplify economic gains over the long term.