Maximum adoption of Artificial Intelligence in Costa Rica would triple the country’s productivity in 10 years
A study commissioned by Microsoft says that the use of Artificial Intelligence in Costa Rica would drive the emergence of high-skill job creation.
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Artificial Intelligence (AI) is the theory and development of computer systems to perform tasks that normally require human intelligence. AI can include systems related to visual perception, speech recognition, decision-making and language translation. The use of Artificial Intelligence in Costa Rica could help the nation to triple its productivity and significantly increase its Gross Domestic Product (GDP) over the course of the next 10 years.
This claim was supported in a study entitled, “The Impact of AI on the labor market in Costa Rica” that was authored by the international consulting firm Ducker Frontier. The work was commissioned by Microsoft Latin America.
The research was presented by the technology giant in the framework of Microsoft AI and consisted of a simulation of maximum adoption of technologies related to Artificial Intelligence in Costa Rica by the year 2030.
What does the study of the adoption of Artificial Intelligence in Costa Rica measure?
Ducker Frontier Research Director, Pablo Gonzalez, explained that this study “measures two things: the possibility of achieving productivity gains by applying Artificial Intelligence technologies, as well as the cascading effect brought to life by AI.” The latter of two results in the creation of new industries and jobs.
“Costa Rica has structural advantages and is in a better position than many of its peers in the region in some of these indicators. However, there are many areas of opportunity for Artificial Intelligence in Costa Rica that companies, the government, academia and civil society must work on,” Ineke Geesink, country manager of Microsoft Costa Rica, said in a press release.
Research suggests that the maximum adoption of Artificial Intelligence in Costa Rica could increase the country’s GDP growth rate from current projections of 3.5% annual average growth through 2030, to levels that range from 5.6% to 7.8%. This momentum could be accompanied by a considerable increase in productivity and a greater demand for more skilled workers. Additionally, one scenario examined in the study suggests that between 22% and 68% of new jobs that do not exist today could be created as a result of the more widespread use of AI.
The Microsoft-commissioned study determined that three sectors would experience the highest demand for skilled workers resulting from Costa Rica’s maximum adoption of Artificial Intelligence. The sectors include business services, with 490,000 new jobs (a 160% increase); manufacturing (20,000 additional jobs for a 53% increase) and construction (with 10,000 additional jobs for a 29% increase).
More time, fewer repetitive tasks
Victor Vargas, director of the Specialist Technology Unit of Microsoft Latin America, points out that the use of AI will result in the elimination of repetitive tasks, as well as will facilitate the more effective use of one of the most valuable resources that is usually available in a company: time.
“Instead of wasting a lot of hours, on tasks that do not add value to a product or to an organization, workers will be able to dedicate themselves to higher value-added activities that are truly impactful. The Costa Rican workforce must be ready to upgrade its skill set to become the link between AI and business and government,” Vargas said.
If, for instance, the use of Artificial Intelligence in Costa Rica saves 30% of worker’s time, this does not mean that he or she will join the ranks of the unemployed. To the contrary, companies will take this opportunity to assign such workers new and more productive tasks which improves an employee’s quality of work life. More productivity could be achieved in less time. Today, Cost Rican workers labor 26% more hours than those in the United States.
Ducker Frontier used the Artificial Intelligence Index in its study. This assessment tool looks at more than 80 indicators and crosses AI development and dissemination variables.
It follows that the country is currently in a position of relative weakness to accelerate the adoption of AI and to meet the needs of human capital. This situation opens up a great opportunity for more men and women to develop STEM careers; those in the areas of science, technology, engineering and mathematics.
When it comes to the adoption of Artificial Intelligence in Costa Rica, the country is the best positioned in the region in its ability to make the benefits of such technologies equitable for the whole society, when compared to the rest of Latin America.
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