Artificial Intelligence, Creative Destruction and Economic Growth, PART I

A snapshot of Finland

Abstract

Artificial intelligence can boost productivity and economic growth, provided that firms have the capacity and the incentives to make use of it. The analysis examines Finland’s situation using international statistics and firm-level data. Finland’s digital readiness and skills base are strong, but firms invest less in course-based staff training than comparison countries do, and the training courses are short. Together with perceived skills gaps, this raises questions about how the skills of the workforce are maintained and developed. AI is used more widely in Finland than the EU average. In cross-country comparisons, strong skills and high job mobility are associated with more widespread use of AI among both employed persons and firms, but these associations do not establish causality. The available research evidence does not suggest that AI has weakened the position of young people in the Finnish labour market. Any assessment of the effects must also take into account the increased prevalence of remote work. AI may widen productivity gaps between firms and accelerate the reallocation of jobs. The growth effects therefore also depend on how well the labour market supports the movement of workers to more productive firms.

• ISSN: 2954-2618 (verkkojulkaisu)
• ISBN: 978-952-209-248-9 (verkkojulkaisu)
• JEL: O33, J24, J62, D24
• Publication in PDF-format