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Developing markets more positive about AI’s effect on employment rate: Study

Developing markets more positive about AI’s effect on employment rate: Study
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Despite concerns about job displacement by artificial intelligence peppering general discourse these days, developing economies are surprisingly and significantly more bullish about the positive effects of AI, according to a survey published by The Economist Intelligence Unit and sponsored by Microsoft.

Eighty three per cent of executives in developing economies expect an increase in the employment rate, compared with just 6 out of 10 respondents in advanced economies.

The study, which surveys more than 400 senior executives, was conducted in eight markets: France, Germany, Mexico, Poland, South Africa, Thailand, the UK and the US. 

According to the study, with the implementation of AI, national and regional economies will become more effective in the way they produce and distribute goods and services.

But such transformations will also introduce ethical or security concerns as well as cost and execution risks.

The study said that, in 2017, the global economy recorded its best performance in six years and looks set for sustained growth in 2018. The Economist Intelligence Unit expects global growth of 3.8%, surpassing 2017’s rate of 3.7% and well above 2016’s 3.2%.

Key findings

Businesses from the eight countries expect AI to have a positive impact on growth (said 90% of executives surveyed), productivity (86%), innovation (84%) and job creation (69%) in their countries and industries.

Nine out of ten executives (94%) from the eight nations describe AI as important to overcoming their organisations’ strategic challenges.

More than one in four (27%) say their organisations have already incorporated AI into key processes and services, while another 46% have one or more AI pilot projects under way.

Financial services respondents report particularly high levels of virtual assistant adoption (48%), but they’re also using predictive analytics (38%) and machine learning (36%). The public sector, meanwhile, has particularly high levels of machine learning adoption (34%).

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