The objective is to use artificial intelligence in a way that delivers a real increase in the productivity and competitiveness of our economy, Minister of Finance, Makis Kervanos, said, during his annual Lecture at the Faculty of Economics and Management of the University of Cyprus, in Nicosia.
"Artificial intelligence is the most significant technological revolution of the twenty-first century. Its applications affect work, the functioning of the state apparatus and of business, productivity, innovation and the flow and volume of information; it brings about profound changes in the structure of national economies and of the global economy alike; and it is driving a transformation of social organisation itself,’’ Keravnos pointed out.
He went on to say that "the technological revolution brought about by artificial intelligence has begun to trigger a realignment of power, in which the technology giants now compete with major democratic powers for global influence.’’
"This is clearly foreshadowed by the additional seats now being set at the summits of the leaders of the world’s most powerful nations, seats reserved for the heads of technology giants,’’ he added.
"The great question is whether that growth will be distributed evenly. It is difficult to answer in the affirmative when the major technology companies, through their comprehensive control of data and technological infrastructure, stand to acquire enormous power,’’ he further said.
"The result would be an oligopolistic structure of the global economy, extending into the shaping of political power itself, while we would see inequalities widening between workers and between small and large enterprises,’’ he noted.
"It is at this point that governments are called upon to play an active role: in the redistribution of the wealth generated, in the taxation of intangible capital and in support for education, lifelong learning and technological training,’’ the Minister added.
"At present, the United States leads in terms of the volume of investment in this field, with a 75% share; China follows at 12–15% and Europe at a mere 5%,’’ he said.
"For Cyprus, as a small and open economy, the adoption of new technologies can strengthen the competitiveness of our businesses, support the international outreach of our services sector and open up new avenues for diversifying our productive base,’’ he pointed out and stressed that "the objective, of course, is not simply to use artificial intelligence more, but to use it in a way that delivers a real increase in the productivity and competitiveness of our economy.’’
Artificial intelligence can substantially strengthen every element of economic policy formulation, Finance Minister said, noting that AI can improve the monitoring and forecasting of economic developments, strengthen the design and implementation of appropriate fiscal policy, and improve the evaluation of economic policies.
Keravnos pointed out that "technology is not a guarantee of more effective public administration. It requires appropriate digital infrastructure, reliable data, training of the workforce and a clear governance framework.’’
"Artificial intelligence will replace certain tasks but not public servants. With artificial intelligence, however, the public service must design its work around serving the citizen, with speed and with simple procedures,’’ he added.
"The International Monetary Fund estimates that around 60% of workers in the advanced European economies are employed in occupations with high exposure to artificial intelligence,’’ Finance Minister noted. ‘’This does not mean that 60% of jobs are at risk of disappearing. Exposure to technology may mean either the potential for productivity gains or a greater risk that specific tasks will be substituted,’’ he pointed out.
"Education, lifelong learning and reskilling take on decisive importance. We need workers with digital skills, critical thinking ability, creativity and the capacity to adapt to a changing working environment,’’ Makis Keravnos said, adding that "at the same time, we must strengthen active labour-market policies and facilitate the transition of workers from shrinking occupations into new or expanding activities.’’
"The challenges arising from the development of artificial intelligence cannot be addressed at the national level alone," he noted.
(Source: CNA)
