Artificial Intelligence will boost labor productivity in Mexico up to 6.4%

A study conducted by the consulting firm DuckerFrontier and commissioned by Microsoft Latin America, in a simulation of maximum adoption of Artificial Intelligence technology in the next 10 years, reveals that Mexico could increase its GDP growth rate from current projections of 2.4% average annual growth until 2030, to levels ranging from 4.6% to 6.4%.

According to the Oxford Insights study, Mexico ranks 22nd out of 35 countries that are truly prepared for AI adoption and Mexican citizens recognize the potential in social applications in sectors such as health and education, areas that, if they improve their processes, would help up to 80 percent of Mexicans with lower incomes. Image: Pixabay
According to the Oxford Insights study, Mexico ranks 22nd out of 35 countries that are truly prepared for AI adoption and Mexican citizens recognize the potential in social applications in sectors such as health and education, areas that, if they improve their processes, would help up to 80 percent of Mexicans with lower incomes. Image: Pixabay

This momentum could be accompanied by an increase in productivity and demand for more skilled workers. According to this scheme, the business services industry would be the most benefited, with 9.4 million new jobs or the equivalent of new working hours (109% of additional jobs in 2030).

Brad Smith, President of Microsoft, pointed out that technology can be a force multiplier that helps generate solutions to some of the biggest challenges facing our world today.

In terms of professions, highly qualified jobs could increase by 67% over the next decade. In six of the seven largest sectors that were analyzed (Public Sector, Business Services, Commerce, Hospitality and Tourism, Construction, Manufacturing, Mining, Agriculture and Utilities), demand for highly skilled jobs could increase, where business services would require 8.9 million additional highly skilled workers (221% more jobs or the equivalent in working hours); manufacturing, 1.8 million (92%); and construction, 1 million (157%).

Some of the benefits of implementing AI in the country are that there will be better jobs, greater growth, and better profits. The jobs that will emerge from this technology are freelance car coaches, new generation architects, facial recreation specialist and data analyst of the Internet of things.

However, the challenges that the Mexican market will have to face are some points such as ensuring access to quality education for all, training all workers and ensuring access to cutting-edge technologies by all companies.

"The ethical issues surrounding AI technologies are of great importance and deserve careful reflection, and we are committed to doing our part to contribute to a broad and informed the discussion. We will need to build capacity for countries to act and collaborate more nimbly in solving these problems on a recurring basis. That's the only way to make sure that machines respond to people," he said.

To define whether Mexico can achieve this additional annual growth by developing AI and maximizing the cascade of effects, DuckerFrontier developed the so-called AI Readiness Index, which is a measure that crosses the AI Development and Dissemination variables, and unites all factors related to implementation and its conditions (e.g., related policies, innovation environment, technology ecosystem and cybersecurity, human capital) with another equally important axis, called IA Benefit Sharing.

Here, the likelihood of a country experiencing social benefits is detailed, while mitigating inequalities, labor crises, economic hardship, and analyzing governance and coalition building to incorporate innovation.

According to the AI Readiness Index, Mexico is in a strong position to accelerate the adoption of AI and to meet human capital needs. However, it also runs the risk of not making these benefits equitable for all of society because of its relatively weaker position with respect to its ability to guarantee equal access to higher education and new technologies for all population groups, regardless of income, gender or location.

Although Mexico has the opportunity to improve in the area of Participation of IA benefits, its position in the area of development and diffusion of IA among Latin American countries indicates that it is the second country best prepared to face the impact of IA on the economy.

Training for Artificial Intelligence

As industries are transformed by technology, so too is the workforce impacted. The disruptive potential of AI demands a mindset that is favorable to adaptability. Since change begins primarily within organizations, training employees with new skills should become an overall priority in every business.

As part of their commitment to democratize IA, Microsoft in partnership with the National Autonomous University of Mexico (UNAM), recently inaugurated an IA laboratory within the facilities of the educational institution, to create an educational space where students can learn about the basics of IA, including automatic problem solving, programming, automatic learning, systems management, cybernetics, neural networks, among others.

The firm has programs aimed at students and teachers for the development of skills and preparation for future jobs, as well as for professionals who want to take courses to train and strengthen their knowledge in technology.

Services and applications in the Cloud or Artificial Intelligence, today are part of all processes, transforming the way how links and work are generated, amplifying our abilities to perform tasks, exploiting to the maximum our own capabilities. Artificial Intelligence has come to transform the economy on a massive scale and Mexico is on the right track.

AI transforms every industry around the world, and the healthcare sector, one of the most people-focused industries, relies on technology to help mitigate the rising cost of healthcare and create better outcomes for patients.

In Mexico, the emerging and innovative Code 46 initiative improves health care services through the creation of a biobank, which offers patients access to information about their genetic code, helping the medical and scientific community to develop personalized and more efficient treatments through Azure and Microsoft Genomic (IA).

By Agencies

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