AI in Hungary could unlock €15 billion productivity gains by 2030, warns McKinsey report
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AI in Hungary could unlock productivity gains of €15 billion: McKinsey
McKinsey projects AI could boost Hungary's productivity by €15 billion by 2030, helping close the gap with European neighbours. However, lagging adoption risks further divergence. Executives highlight potential cost transformations, faster service delivery, and the imperative of global competitiveness to avoid being outpaced by foreign AI adopters. Increased deployment of AI could unlock €15 billion ($17.42 billion) in productivity gains in Hungary by 2030, McKinsey said on Tuesday. AI could help Hungary close some of its productivity gap with European neighbours, the consultancy said, while warning that Hungary could fall further behind if AI adoption lags. Following are key points from a roundtable discussion of the McKinsey report with top Hungarian executives. Andras Becsei, OTP Bank deputy CEO: While AI could curb human resources expenses, it could boost operating costs and capital expenditure -- meaning the overall impact could be a transformation, rather than reduction, of costs. Peter Nagy, Magyar Telekom deputy CEO: AI agents are handling 20% of customer calls, and that is expected to increase. AI has helped cut the time to bring new services to market to around 30 days from 90, while allowing the company to allocate half of its network monitoring staff to more complex operations. Gabor Orban, Richter CEO: More time is needed to see how much of the hype around AI is justified and whether the productivity gains can be unlocked. The pharma industry has seen several similar upheavals in past decades, such as genomics or digitisation, which have yet to live up to their promises. Gergely Bacso, Allianz Hungary CEO: Labour costs are only one part of the issue - AI is also a matter of global competition. Cost savings for a U.S. company can be several times more than what a Hungarian one could achieve. Competition will be intense and if Hungary does not act it risks losing out to foreign players for whom adopting AI is more profitable.
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AI in Hungary could unlock productivity gains of EUR15 billion, McKinsey says
BUDAPEST, June 16 (Reuters) - Increased deployment of AI could unlock EUR15 billion ($17.42 billion) in productivity gains in Hungary by 2030, McKinsey said on Tuesday. AI could help Hungary close some of its productivity gap with European neighbours, the consultancy said, while warning that Hungary could fall further behind if AI adoption lags. Following are key points from a roundtable discussion of the McKinsey report with top Hungarian executives. * Andras Becsei, OTP Bank deputy CEO: While AI could curb human resources expenses, it could boost operating costs and capital expenditure -- meaning the overall impact could be a transformation, rather than reduction, of costs. * Peter Nagy, Magyar Telekom deputy CEO: AI agents are handling 20% of customer calls, and that is expected to increase. AI has helped cut the time to bring new services to market to around 30 days from 90, while allowing the company to allocate half of its network monitoring staff to more complex operations. * Gabor Orban, Richter CEO: More time is needed to see how much of the hype around AI is justified and whether the productivity gains can be unlocked. The pharma industry has seen several similar upheavals in past decades, such as genomics or digitisation, which have yet to live up to their promises. * Gergely Bacso, Allianz Hungary CEO: Labour costs are only one part of the issue -- AI is also a matter of global competition. Cost savings for a U.S. company can be several times more than what a Hungarian one could achieve. Competition will be intense and if Hungary does not act it risks losing out to foreign players for whom adopting AI is more profitable. ($1 = 0.8613 euros) (Reporting by Gergely Szakacs; Editing by Alexander Smith)
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McKinsey projects AI could boost Hungary's productivity by €15 billion by 2030, helping close the gap with European neighbors. However, lagging adoption risks further divergence. Top executives highlight cost transformation, faster service delivery, and the imperative of global competitiveness to avoid being outpaced by foreign AI adopters.
McKinsey Report Projects Major Economic Opportunity for AI in Hungary
A new McKinsey report reveals that AI in Hungary could unlock €15 billion in productivity gains ($17.42 billion) by 2030, offering the country a significant opportunity to close the productivity gap with European neighbors
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. The consultancy's analysis, discussed during a roundtable discussion with Hungarian executives, presents both a promise and a warning: while AI adoption in Hungary could drive substantial economic benefits, lagging implementation risks widening the economic divergence between Hungary and more advanced European economies2
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Source: Market Screener
Hungarian Executives Reveal Real-World AI Implementation Results
Magyar Telekom is already demonstrating what faster service delivery through AI looks like in practice. Peter Nagy, the company's deputy CEO, reported that AI agents are currently handling 20% of customer calls, with expectations for this figure to increase substantially. The telecommunications provider has cut the time to bring new services to market to around 30 days from 90, while reallocating half of its network monitoring staff to more complex operations
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. These concrete metrics illustrate how AI deployment is reshaping operational efficiency in Hungary's corporate sector.Cost Transformation Rather Than Simple Reduction
Andras Becsei, deputy CEO of OTP Bank, offered a nuanced perspective on the financial implications during the roundtable discussion with Hungarian executives. While AI could curb human resources expenses, he noted it could simultaneously boost operating costs and capital expenditure, meaning the overall impact represents a cost transformation rather than a straightforward reduction
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. This insight suggests companies must prepare for strategic reallocation of resources rather than expecting immediate bottom-line savings.
Source: ET
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Skepticism from Pharma Industry on AI Hype
Gabor Orban, CEO of Richter, the pharma industry leader, expressed caution about whether the projected productivity gains can actually be realized. He pointed out that the pharma industry has witnessed several similar technological upheavals in past decades, including genomics and digitization, which have yet to fully deliver on their promises
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. His perspective serves as a reminder that technological potential doesn't always translate directly into economic results.Global Competitiveness Drives Urgency for AI Adoption
Gergely Bacso, CEO of Allianz Hungary, emphasized that the stakes extend far beyond domestic labor cost considerations. He warned that cost savings for a U.S. company from AI implementation can be several times more than what a Hungarian firm could achieve, making global competitiveness a critical factor . Competition will intensify, and if Hungary does not act decisively, it risks losing market share to foreign players for whom adopting AI is more profitable. This competitive pressure suggests that the €15 billion opportunity could quickly become a liability if Hungary's businesses fail to move swiftly on AI integration, potentially accelerating economic divergence rather than closing existing gaps.
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