34 Turbocharging the Global Economy 6 In conjunction with ENACT, Oxford Economics has produced a special report exploring the economic opportunity of turbocharging the global economy through the twin engines of AI and Energy. Their analysis identified that, while AI is widely available across the globe, unlocking the full economic benefits in lower-income countries will be difficult without improving access to energy and finance. It estimates the economic potential to be $53-$75 trillion from improved access to energy and $22 trillion accruing from deeper capital markets, with a fresh impetus for growth being badly needed. See Fig. 12 AI is becoming a critical driver of innovation and prosperity, with the US, Europe and China racing to apply it everywhere—across industries, governments, and public institutions. Outside of these countries, it is less about adopting a single technology or policy than creating the conditions in which productivity, innovation, and investment can thrive. Their modelling shows that five specific factors—effective government, access to education, good healthcare, abundant and reliable energy, and access to capital—can help narrow the divide with low-income countries, but two in particular have an outsized impact: energy and finance. With energy and finance, a virtuous cycle of AI-powered growth can gain momentum. See Fig. 13 Realizing the next great leap in human progress Figure 12 Emerging ecomonies Log of Energy Consumption (‘000 kWh) Log of GDP per capita (PPP) Mature economies Source: Oxford Economics Figure 13 Employment in LICs stands to gain and lose relatively less Drivers of development differences between LICs and HICs* Current USD (tm) Employment shares by AI exposure and complementarity High exposure, low complementarity Low-income countries High-income countries High exposure, high complementarity Low exposure 200 180 160 140 120 100 80 60 40 20 0 $75tm 16 53 22 20 13 62 186 LICs* (today) *LICs = Low-income countries . HICs = High-income countries. LICs* (at HICs levels) Energy Finance Education Health Governance Reliable energy supply & access to finance Investment acting as seed capital Increased entrepreneurship spurring innovation AI adoption accelerating productivity Higher growth, stronger balance sheets & tax intake