A major economic challenge for many if not all Western economies’ is declining Productivity a problem exacerbated by Aging Populations.

The scale of the challenge in Jersey for example was clearly highlighted by the Minister for economic development Kirsten Morel when he indicated that with no uplift in Productivity the population would need to grow to circa 150,000 people a 50% increase to maintain existing services.

At the same time, we are amid an Artificial Intelligence (AI) revolution which when used to augment Automation and Digital transformation is widely seen as having the potential to revolutionise productivity in many sectors.

Emerging Trends

  • Virtual Assistants: development of large language models is enabling more advanced virtual assistants that can significantly enhance the efficiency of knowledge workers.
  • Improved Organisational Transparency: AI-powered technologies such as process and task mining are providing more visibility into operations, helping spot and address inefficiencies and improve process consistency.
  • Broadening of Automation Capabilities: AI innovations are making it possible to automate more complex tasks, with popular Use Cases being Intelligent document processing and automated testing.
  • Software Development: AI is being used to generate code, automate repetitive tasks, detect bugs leading to faster development cycles and better-quality software. With the potential to exponentially Increasing the pace of change.

Challenges

  • Data and Security Concerns: The quality and accessibility of data within organisations, security and data residency considerations when utilising externally hosted AI and Automation services.
  • Legal risks: such as IP infringement need to be considered
  • Ethical Issues: Maintaining transparency, addressing potential biases and discrimination.
  • Regulation: complying with emerging regulations are critical considerations that must be handled carefully.
  • Cultural Resistance: Adoption of AI and Automation within enterprises often faces cultural hurdles and embedded resistance to change.
  • Skills: Developing and deploying AI And Automation solutions can be impeded by gaps in necessary skills such as Data science and specific Domain expertise.

Conclusions

There is significant enthusiasm about the potential of AI and Automation to positively impact businesses and individuals, helping them to raise Productivity significantly.

There are also substantial challenges that need to be overcome. In an Automated and AI dominated future businesses will need to rethink the nature of work, the skills required and entire business models.

This 4th Industrial revolution is set to be as impactful if not more so than those that have preceded it. Businesses need holistic and strategic approaches, to ensure they are well placed to adapt and thrive or risk extinction as their markets are disrupted.

Similarly, as individuals we must also embrace and adapt:

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

Alvin Toffler


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