According to a new McKinsey analysis, artificial intelligence could unlock roughly €15 billion in productivity gains for Hungary by the end of the decade.

The consultancy argues that AI has the potential to narrow Hungary’s productivity gap with more advanced European economies by improving efficiency across sectors ranging from finance and telecommunications to manufacturing and healthcare.

However, the report also warns that failing to adopt AI aggressively could leave Hungary at a competitive disadvantage as businesses in larger markets accelerate investment.

AI Transforming Business Operations

During a roundtable discussion of the report, executives from several of Hungary’s largest companies shared examples of how AI is already reshaping operations.

At Magyar Telekom, Deputy CEO Peter Nagy said AI agents currently handle approximately 20% of customer calls, with that percentage expected to increase over time.

The company has also reduced the time required to launch new services from roughly 90 days to about 30 days through AI-enabled processes.

In addition, AI-driven automation has allowed the company to redeploy nearly half of its network monitoring workforce toward more complex and higher-value tasks.

Cost Transformation Rather Than Cost Reduction

Executives emphasized that AI’s impact extends beyond labor savings.

Andras Becsei, Deputy CEO of OTP Bank, noted that while AI could lower personnel expenses, it may simultaneously increase operating costs and capital expenditures due to investments in infrastructure, computing resources, and software.

As a result, organizations should view AI as a transformation of cost structures rather than a simple reduction in expenses.

The observation reflects a broader trend seen globally, where companies are spending heavily on AI systems even as they seek long-term efficiency gains.

Healthcare Industry Remains Cautious

Not all sectors are equally convinced that AI’s potential will be fully realized.

Gabor Orban, CEO of Gedeon Richter, urged caution when evaluating AI’s long-term impact.

He noted that the pharmaceutical industry has previously experienced waves of enthusiasm around technologies such as genomics and digitization that ultimately delivered results more slowly than initially expected.

According to Orban, additional time is needed to determine whether AI can consistently produce the productivity improvements many forecasts anticipate.

Competition May Be the Bigger Driver

Several executives argued that competitiveness, rather than cost reduction, may be the most important reason to adopt AI.

Gergely Bacso, CEO of Allianz Hungária, pointed out that larger economies may benefit more dramatically from AI-driven efficiencies because of their scale.

Companies in the United States and other major markets can often generate larger returns on AI investments, creating the risk that Hungarian firms could lose ground if they fail to modernize.

The concern highlights how AI adoption is increasingly becoming a strategic necessity rather than an optional technology initiative.

Outlook

Hungary’s opportunity to generate €15 billion in productivity gains will depend largely on how quickly businesses, institutions, and policymakers embrace AI technologies.

Early adopters are already reporting measurable improvements in customer service, operational efficiency, and product development timelines.

At the same time, leaders recognize that realizing AI’s full potential will require significant investment, organizational change, and workforce adaptation.

As AI becomes a critical driver of global competitiveness, Hungary’s success may ultimately depend on whether its businesses can move quickly enough to keep pace with larger international rivals.