Global | The impact of IA on employment and productivity

Summary

Artificial intelligence (AI) aims to transform a multitude of fields of knowledge, emerging as a general-purpose technology (GPT). In terms of productivity, economic growth, and the labor market, the effect of AI is limited at present, and there is extensive debate regarding its future impact.

Key points

• Key points:
• Spain and Europe have made significant progress in their digital ecosystem compared to the United States, with notable improvements since the pandemic. However, while Europe and Spain show a development of AI in line with their level of digitalization, the United States and China exhibit a level of AI development that surpasses their digital ecosystem.
• Given that the conversion of scientific advancements into commercial products can take many years or even decades, productivity growth in the next decade will largely depend on the speed of AI adoption.
• AI will facilitate the creation of new professions, complement existing occupations by increasing their productivity, and in some cases, lead to job losses. Currently, most empirical evidence points to a positive effect of AI on the labor market, both in terms of job creation and wage increases, similar to what has occurred with previous general-purpose technologies.
• The environment in which AI operates (infrastructures, regulations, and skills) is crucial for its successful deployment. The governance of the digital transition, as well as the development and use of AI, are key elements to maximize benefits and mitigate risks.

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