The intensive use of artificial intelligence (AI) could significantly improve Austria’s economic performance. Or make it possible to achieve the same economic output with significantly fewer working hours, according to a study published on Monday by the Economica Institute.
In about ten years, economic output, measured as value creation, with full use of AI could be 18 percent higher than if AI were only used at current levels, according to calculations by the Economica Institute on behalf of Microsoft and Accenture. That would mean approximately “70 billion euros more prosperity” per year. The head of the institute, Christian Helmenstein, emphasizes that the calculations are conservative, ignoring future improvements in AI, for example.
“More hope than fear”
The use of AI is especially noticeable in terms of the required working time: 2.24 billion hours, almost a third of the seven billion hours worked in 2023, would be ‘freed up’. But that would not be reflected in higher unemployment, Helmenstein expects, pointing to the many retirements and declining average working hours.
Microsoft Austria boss Hermann Erlach also does not expect an increase in unemployment as a result of AI use. However, workers who use AI would displace those who cannot. In the future, however, it will be more about finding sufficient – well-trained – employees than about increasing unemployment. “The first figures we see about labor productivity give more hope than fear,” says Erlach.
Either…or
Productivity per employee has hardly increased recently. A significant increase in productivity would give the social partners space for distribution that recently no longer existed. However, society will have to decide whether this will support the aging population or give the working population more free time, Helmenstein says.
With AI-related productivity increases, both cannot be financed simultaneously without a loss of welfare.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
