The paper explores the economic effects of AI in Korea, identifying it as a global leader in AI adoption. Larger, tech-savvy firms are benefiting most, but half the workforce faces exposure to job changes due to AI. The paper underscores Korea’s readiness through its innovation and digital infrastructure while stressing the need for improved labor policies to maximize positive outcomes.
Artificial Intelligence (AI) is revolutionizing Korea’s economy, establishing the nation as a leader in AI implementation. Larger, younger, and tech-savvy firms are leading adoption rates. With AI poised to enhance productivity significantly, the greatest benefits are seen in established companies. Alarmingly, around half of the workforce is susceptible to AI advancements, particularly impacting female, younger, educated, and higher-income employees.
Korea’s robust digital infrastructure and innovation ecosystem mark its readiness for AI integration. However, to fully capitalize on AI’s prospects, it’s crucial to improve labor market flexibility and strengthen social safety measures. As the landscape shifts, addressing these challenges will be essential in navigating the evolving job market and enhancing productivity across sectors.
The paper covers interconnected themes: aging demographics, digitalization, employment trends, and human capital. It emphasizes that the advent of AI is a double-edged sword—offering both opportunities and risks to workers. An adaptable workforce supported by effective policies will be vital in this transitional phase, ensuring that AI technology contributes positively to economic growth and societal well-being.
AI is set to transform Korea’s economy, boosting productivity and reshaping the workforce landscape. As Korea embraces this technology, it faces the dual challenge of harnessing benefits while mitigating risks, especially for vulnerable workers. Enhanced labor policies and social protections will be pivotal in navigating this transformation, ensuring that AI not only drives growth but also promotes equitable development for all sectors of the society.
Original Source: www.imf.org
