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AI is set to reshape the U.S. job market, boosting productivity, but Europe may lag behind. A new McKinsey paper highlights divergent paths in AI adoption, potentially widening the innovation and economic gap. To close this divide, Europe needs to accelerate worker transitions and embrace technological advancements. This shift is crucial for addressing labor market challenges and ensuring competitive productivity growth. #AI #Productivity #FutureOfWork #Innovation https://lnkd.in/eZgcJnsf

The U.S. and Europe are on divergent paths for generative AI adoption, according to a new paper by the McKinsey Global Institute — a predictable result, given that most of the technology has been built in the U.S. https://lnkd.in/gykzBT69 #unitedstates #europe #artificialintelligence #generativeai #adoption #divergent #paths #technology #economygrowth #mckinsey #report

Driving the news: As it stands, the U.S. and Europe are on divergent paths for generative AI adoption, according to a new paper by the McKinsey Global Institute — a predictable result, given that most of the technology has been built in the U.S.

We all have heard and read of the speed of the implementation of AI into work processes and it's consequences for the labour market. Here is a new look at a study on the different metabolic rates of technological innovation between the US and Europe. Is Europe lagging behind in the application of AI? Is regulation holding the continent back? Yet we hear from many experts that AI needs to be regulated quickly or it will pose a great danger to society. In Singapore, we have embraced AI as inevitable and ensuring that training is provided to everyone involved so that they are not left behind. But we can be pretty sure that regulation is not far behind.

I previously posted on the excellent IMF Research on AI and its' impact on work globally. Here are my key takeaway points from their 42 pages of work. 1.     Artificial intelligence (AI) is set to profoundly change the global economy, with some commentators seeing it as akin to a new industrial revolution. Its consequences for economies and societies remain hard to foresee. 2.    Almost 40% of global employment is exposed to AI, with advanced economies at greater risk but also better poised to exploit AI benefits than emerging market and developing economies. 3.   AI will affect income and wealth inequality. Unlike previous waves of automation, which had the strongest effect on middle-skilled workers, AI displacement risks extend to higher-wage earners. 4.   The gains in productivity, if strong, could result in higher growth and higher incomes for most workers. Owing to capital deepening and a productivity surge, AI adoption is expected to boost total income. 5.   College-educated workers are better prepared to move from jobs at risk of displacement to high complementarity jobs; older workers may be more vulnerable to the AI-driven transformation. 6.   To harness AI's potential fully, priorities depend on countries’ development levels. Note: selected text is © IMF, 2024. All Rights Reserved. The graphic work that depicts artificial intelligence as a vast, intricate network of glowing neon circuits and nodes, spanning across the globe is mine, © Mark S. Mandula, 2024. All Rights Reserved. 

AI's Productivity Boost May Be Overestimated, New Study Says Publication Date: May 30, 2024 Reading Time: Approximately 3 minutes Summary: i. A new MIT study by economist Daron Acemoglu argues that the economic impact of AI has been overestimated. ii. The study predicts a modest GDP boost in the US from AI in the next decade, ranging from 0.93% to 1.56%. iii. This is significantly lower than forecasts by firms like Goldman Sachs, which predict a much larger impact. iv. The study argues that AI's impact on productivity will be limited, especially for "hard-to-learn" tasks involving context-dependent decision-making. v. While AI may create new products and tasks, it could also lead to negative impacts like manipulative advertising and cyberattacks. #ArtificialIntelligence #AI #Productivity #EconomicGrowth #MIT Source： https://lnkd.in/ga-Cz9Ex https://lnkd.in/gMbiBMQF https://lnkd.in/gffPza2j

The major change in AI, compared to other technological innovations, is that it looks likely to impact white-collar work more significantly than blue-collar labor. AI’s ability to replicate mundane, routine tasks makes it well-suited to performing the sort of administrative tasks that comprise certain office jobs, although the cost of undertaking a full-scale integration of AI across a company is slowing the transition. #ai #whitecollarjobs

Like with other technologies the US and Europe are not fully aligned when it comes to considering, implementing and adopting generative AI. Not to mention the diverse approaches within Europe. Yet, this is expected for two major regions where cultures, constraints and dependencies are different.

A great article by Georgieva, K. "AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity," from the IMF blogs. https://lnkd.in/eq_ZeKMy Prompted me to to think once again can we really up skill everyone fast enough? The fusion of artificial intelligence and automation holds immense potential for innovation, but it also raises questions about the fate of employment for the majority. How can we harness the benefits of AI while ensuring inclusivity in the workforce? What role do policymakers play in navigating this transformative landscape? My thoughts here https://lnkd.in/eF2PwVWJ 🌐💡 #AI #FutureOfWork

https://lnkd.in/gy_Jvjqx MIT's Daron Acemoglu offers a cautionary take on AI, pointing to negative aspects and difficulty for AI to automate complex context specific tasks. At some stage we may be up for a dot com crash type correction of the irrational exhuberance