Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
Artificial intelligence (AI) in productivity and labor - statistics & facts
The artificial intelligence (AI) market is diverse and expansive, and the potential applications of this new technology will have colossal effects on the world’s labor force and productivity. The size of the AI market is considerable, expected to grow beyond 305 billion U.S. dollars in 2024 with a growth factor of approximately 70 billion U.S. dollars a year. This feat is not easily replicated in other markets and serves as an indication of technology’s influence on industries, markets, and the workforce. Indeed, automation is constant, but it is estimated that with AI, productivity could increase even further as jobs are optimized, and mundane tasks are made redundant or automated.
Reskilling in the age of AI
AI has become a growing concern across industries. Even if we consider its ability to assist with simple, boring, and repetitive tasks, it will inevitably change the way we train our workforce and navigate traditional career paths. Most expect that AI adoption will lead to at least 20 percent or more of enterprise employees needing to be reskilled. This is a significant level of reskilling, as reorienting one in five employees will take time, money, and effort. Of the many positions potentially automated, data management roles will likely be some of the most intensively affected. These positions include human resources, office support workers, and other manual but simple office work.The United States expects big but imbalanced gains
Both in productivity and labor changes, the U.S. is likely to be heavily impacted by the adoption of AI, as it could boost U.S. labor productivity growth by 1.5 percentage points over 10 years. The main issue facing the U.S. will be the distribution of AI jobs across its landmass. California alone requires more AI workers than 27 other states combined, a considerable imbalance within the U.S. border that may exacerbate regional income and wealth inequalities. This requirement for AI skills has become even more pronounced in the ongoing generative AI revolution, with nearly 60 percent of AI jobs in the U.S. demanding capabilities in generative AI.Countries reactions determines success
How the world decides to tackle the inevitable AI adaptation will dictate the winners and losers of the global economy. While restrictive policies could slow down AI adoption, it is likely that in the long term more efficient businesses, utilizing the most up-to-date advancements in AI, will outcompete their more conservative competitors. It will be the role of governments to ensure a smooth transition and enable reskilling to reduce labor problems and speed up productivity gains.Bergur Thormundsson
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Jun 19, 2024
Bergur Thormundsson
Research expert covering technology in the Nordics, AI and smart cities
