Competitive Switzerland

In brief

• Switzerland ranks third globally in generative AI impact and could capture 92 billion CHF in GDP by 2030 under a 'people-centric' scenario.
  
  
• 91% of Swiss executives view generative AI as a catalyst for revenue growth, not just cost reduction (vs 76% globally).
  
  
• Companies and policymakers need to enhance their preparedness to enable the entire economy to fully benefit from generative AI.

Generative AI could boost Swiss economy by CHF 92 billion by 2030

Switzerland ranks third globally in potential for automation and augmentation, with 45.2% of work time impacted by gen AI.

Disruption provides opportunity

Swiss executives are keenly aware of the transformative power of generative AI, recognizing its substantial potential for economic growth and productivity gains, particularly in the financial sector. By 2030, a people-centric approach could contribute an additional 92 billion Swiss Francs to the economy. Despite challenges in enterprise, workforce, and regulatory readiness, Switzerland's reputation for innovation and skilled talent positions it well to capitalize on generative AI capabilities.

Switzerland could unlock CHF 92 B by 2030 with people-centric generative AI

Beyond mere productivity increases

A significant majority of Swiss executives, namely 91%, view generative AI as a catalyst for revenue growth rather than a mere tool for cost reduction and are hence more optimistic than the global average of 76%. Leading Swiss companies across various industries have already integrated AI into their business processes, signaling a positive trajectory for the national economy.

The potential productivity increases are considerable

Industries in the financial services sector—capital markets, insurance, and banking—have the highest productivity increase potential. However, opportunities abound in all Swiss industries, as generative AI has the potential to increase productivity by double digits in all industries, due to the time savings it can help realize.

To put the size of the opportunity into context, our research clearly shows that this increase compares to what Switzerland witnessed in the aftermath of the Internet revolution, from 2000 to 2006-09, and corresponds to the growth of the last 11-16 years. As we show in our report, while for some industries the time savings will average around 13%, for many others they will be around the 20% mark. For example, financial services may experience time savings between 20 and 30%.

Leading companies are unleashing growth by investing these time savings in revenue-generating activities.

Are we ready?

Some companies are already investing time freed by generative AI to grow revenue, not just optimize costs.

However, the analysis starkly reveals a readiness gap among Swiss firms to fully adopt AI. Currently, only a mere 2% of Swiss companies are scaling up generative AI enterprise-wide, and a significantly higher percentage of Swiss compared to global leaders expect this integration to take between 12 and 18 months. Furthermore, only 7% of Swiss leaders are extremely confident in their data strategy and digital capabilities to effectively leverage generative AI. Our outside-in analysis confirms the pressing need for improvement in these areas.

The study of 23 Swiss global players reveals a notable disparity in ‘AI talents’ category, which assesses the number of AI professionals, their skills, and talent retention. This disparity underscores the gap between our top-performing and underperforming multinational firms. Leading companies outshine nearly 80% of their global peers, while those in the bottom quartile are ahead of just 20%.

Given that generative AI is proving to be a democratizing force in technology, Swiss companies behind 80% of their international competitors have a significant opportunity to advance their workforce. These companies have a unique chance to maintain the relevance of their professionals in an era of increasing automation and augmentation.

To tap into the economic growth potential offered by generative AI in Switzerland, it's crucial to address its impact on the workforce. With an expected influence on 45% of working time, strategically focusing on workforce adaptation is vital. Although the impact varies across industries, the proactive approach of Swiss workers towards acquiring new skills and embracing the benefits of generative AI is encouraging, even amid concerns about job security and quality of life.

Swiss employees are highly receptive to generative AI technology, recognize its value and show a willingness to acquire new skills. We found that 92% of Swiss workers see value in working with gen AI, 93% want to learn new gen AI skills and 85% are already using gen AI at work in some fashion.

While their optimism is evident, they maintain a cautious stance, as more than 54% say it could add to their stress and burnout, with 48% worried about job displacement and 50% concerned about the accuracy of tool output.

Regulatory efforts lag other countries, but a catch-up is underway

Businesses show readiness for embracing generative AI, but regulatory frameworks are crucial to scale and manage risks.

Switzerland lags in AI policies, but parliament discusses AI.

Swiss regulation of AI governance is strong and in line with global standards such as the OECD AI principles. Since 2019, vigorous debates in the federal parliament have highlighted Switzerland's commitment to fostering a conducive climate for AI innovation. Key focal points of discussion have been education, research, AI guideline monitoring tools, and national security. The breadth of subjects in parliamentary debates reflects Swiss lawmakers' keen interest in nurturing the prospects that AI presents. 

Initiatives such as the previously mentioned modernization of the office clerk apprenticeship program demonstrate a commitment to developing the workforce across society. This recognizes the important role that one of Switzerland's largest employee groups will play in the AI era.