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AI to Boost APEC Productivity: OECD Chief Reveals Growth Forecast

The OECD chief has revealed some exciting news about AI's potential impact on productivity. Mathias Cormann shared that artificial intelligence could significantly boost labor productivity across APEC economies. He emphasized that these economies have strong advantages to build upon, including skilled workers and digital infrastructure. The key will be ensuring smaller businesses can access and benefit from AI technology too.

Key Points: OECD Says AI Will Boost APEC Labor Productivity Growth

  • OECD estimates AI will boost annual productivity by 0.2-0.4 percentage points
  • APEC economies benefit from skilled populations and digital connectivity
  • Small businesses need better access to AI technology diffusion
  • Competitive AI ecosystems will drive better services at lower prices
2 min read

AI to boost labour productivity growth in APEC economies: OECD chief

OECD chief Mathias Cormann predicts AI will add 0.2-0.4 percentage points to annual labor productivity growth in APEC economies over next decade.

"APEC economies have a number of assets to draw on -- integration into global supply chains, skilled populations and strong digital connectivity - Mathias Cormann"

South Korea, Oct 29

Artificial intelligence (AI) has the potential to boost labor productivity in Asia-Pacific economies over the coming decade, the head of the Organization for Economic Development and Cooperation (OECD) said on Wednesday, calling for strong policy support to expand access to related technology.

Speaking at a session of the Asia-Pacific Economic Cooperation (APEC) CEO Summit, OECD Secretary-General Mathias Cormann said his organisation estimates that AI will "contribute between 0.2 and 0.4 percentage point to annual labor productivity growth over the next decade," reports Yonhap news agency.

The business-centric gathering running parallel to the annual APEC forum's leader's summit officially kicked off earlier in the day to explore pivotal issues, ranging from AI and energy transition to Korean soft power.

"APEC economies have a number of assets to draw on -- integration into global supply chains, skilled populations and strong digital connectivity," he said.

To fully realise the benefits of AI, Cormann stressed the need to broaden and deepen the diffusion and availability of AI technology, particularly for small and medium-sized businesses.

The OECD chief also stressed the need to ensure affordable connectivity and encourage more competitive AI ecosystems to drive better services at lower prices.

In addition, Cormann highlighted the importance of advancing international tax cooperation as a way to create a more predictable and stable environment for businesses.

Cormann also emphasised the need to strengthen supply chain resilience and maintain rules-based international trade to mitigate risks arising from growing geopolitical and economic tensions.

Meanwhile, US tech giant Nvidia Corp. is widely expected to supply artificial intelligence (AI) chips to South Korean companies, including Samsung Electronics Co. and SK Group, sources said on Wednesday, as per Yonhap news agency.

This week Nvidia Chief Executive Officer (CEO) Jensen Huang is set to attend the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju, a business-centric gathering running parallel to the annual APEC leaders' summit.

According to the sources, Nvidia is expected to sign supply agreements with Samsung Electronics Co., SK Group, Hyundai Motor Group and Naver Corp., which are expected to be unveiled Friday.

- IANS

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Reader Comments

R
Rohit P
While the potential is exciting, I'm concerned about job displacement in countries like India where we have such a large workforce. The government needs to focus on reskilling programs alongside AI adoption. 🤔
A
Arjun K
Good to see the OECD recognizing what we in tech already know! Indian startups are already leveraging AI in amazing ways. With our skilled IT workforce, we can lead in this space. 💪
S
Sarah B
The emphasis on small businesses is crucial. In India, MSMEs form the backbone of our economy. Making AI affordable and accessible to them could be a game-changer for economic growth.
V
Vikram M
I appreciate that Cormann mentioned supply chain resilience. After the pandemic disruptions, this is particularly relevant for Indian manufacturing. AI can help optimize our logistics and reduce dependencies. 👍
M
Michael C
The numbers seem conservative to me. Given India's rapid digital transformation and young population, we might see even higher productivity gains if implemented properly. Exciting times ahead! 🚀

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