An Artificial Intelligence (AI) strategy needs to be urgently prioritised by policymakers in Northern Ireland to harness the potential of AI to boost productivity, according to a new report on how the technology could affect the region’s economy.
The report, authored by Queen’s University academics on behalf of the Northern Ireland Productivity Forum, focusses on AI and the potential benefits that transformative digital technologies could offer the local economy.
AI could raise productivity growth in knowledge-intensive sectors, create new jobs, and support public sector transformation, the report argues. However, Northern Ireland is more reliant on low-paid occupations and low-productivity sectors – which are more exposed to AI – when compared to the UK, creating a higher risk of these jobs being displaced by AI, the report warns.
Whether AI leads to a closing of Northern Ireland’s productivity gap will therefore be determined by its ability to strengthen the drivers of productivity growth, it concludes.
The report, co-authored by Professor John Turner, Dr David Jordan, Ruth Donaldson and Seán McDonald from Queen’s Business School, was launched today (Wed 29 April) at an event, Raising Northern Ireland’s productivity: Better outcomes for people, firms and places at Queen’s University.
Hosted by the NI Productivity Forum in conjunction with the Department for the Economy, the event is part of a series to mark National Productivity Week across the UK.
The Harnessing AI to boost Northern Ireland’s productivity: Implications for people, business, and government report recommends an AI skills strategy should be focussed on developing people’s digital skills, particularly through lifelong learning.
Co-author Dr David Jordan, who is a Lecturer in Economics at Queen’s Business School, Lead of the NI Productivity Forum, and an Independent Expert Advisor on productivity to the Department for the Economy, said: “Supporting Northern Ireland’s workforce to gain the skills needed to make the most of AI will strengthen the economy’s adaptability to AI-induced change, and provide a route to support for SMEs.
“Better productivity will not come from adopting AI in isolation. The evidence demonstrates that investment in other business assets is also essential. This includes, for example, the management practices of businesses, which will be a critical factor in determining whether they can keep pace with AI developments. Northern Ireland’s track record in this area has been mixed, which means now is the time to make those improvements.”
Co-author Professor John Turner, who is the Director of Research at Queen’s Business School, said: “Northern Ireland missed out on the productivity boon that came with the ICT revolution in the 1990s. For the sake of our children and grandchildren, it cannot afford to miss the productivity gains that the AI revolution is ushering in.”
Among the report’s other recommendations are:
- An AI strategy should be implemented in a timely fashion, led by the NI Executive Office and built around three strands:
- Supporting AI adoption by people and businesses
- Transforming public sector services
- Providing forward-looking, productivity-centred advice on AI adoption
- For people, the report recommends seeking out the skills and qualifications needed to use AI effectively at work and embracing lifelong learning
- For businesses, it recommends a smart second-mover strategy: seeking out opportunities to implement new AI developments, investing in the complementary assets needed for productivity gains, and improving management practices that will make them more productive and profitable
- For the NI Executive, the recommendation is to adopt a smart second-mover AI strategy, overseen by a Productivity & Growth Board, focused on creating the conditions for economy-wide AI adoption rather than competing at the frontier of AI development, alongside embracing new digital and AI technologies which support transformation of public services