Digitalization and AI Revolution

Digitalization, including the rise of AI, offers opportunities for productivity growth but also poses risks of job displacement and inequality.

Themes

AI-Driven Transformation , Navigating Global Uncertainty

Timeframe

long-term

Subcategories

Artificial Intelligence Automation Corporate Strategy Governance & Policy Risk Management

Impact areas

Economic Growth Income distribution Labor markets Productivity

Detailed Analysis

Digitalization has the "potential to reshape the international monetary system." However, governments have been slow to fully leverage its potential. The rise of AI, in particular, presents both immense opportunities and significant risks. While it could "jump-start productivity, boost global growth, and raise incomes," it also threatens to "replace jobs and deepen inequality."

Context Signals

Slow adoption of digital technologies in the public sector. Increased risk of cyberattacks. Potential for AI to both create and destroy jobs.

Edge

Need for policies to address labor market dislocations. Development of AI ethics and regulation. Potential for AI to drive innovation and economic transformation.

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