UBS Chief Economist Paul Donovan assesses how artificial intelligence (AI) could impact productivity and whether the European Union (EU) can gain an advantage over the United States (US). It notes that the impact of AI on productivity remains largely potential, but argues that educational structures and the distribution of skills among workers in the US, key European economies and the United Kingdom (UK) could shape relative competitiveness as AI spreads.

Artificial Intelligence Productivity and Education-Based Advantage

“The potential of AI’s shiny new toy to generate productivity is still more of an ideal than a reality.”

“But the adoption of any new technology should ultimately improve economic efficiency (otherwise why change?”).

“As investor interest expands to the use of technology, will any economy have a competitive advantage by leveraging artificial intelligence?”

“Academic work suggests that if AI improves individual productivity, it will increase the productivity of low-skilled workers proportionately more.”

“If AI productivity growth is uneven and disproportionately benefits workers with a high school education, the United States could find itself at a competitive disadvantage compared to other large economies.”

(This article was created with the facilitate of an artificial intelligence tool and has been reviewed by an editor.)