Innovations are a key element for #EuropeEconomy

| April 10, 2019

Innovations are so important in this day and age, not just to the economy of one region but to all humanity. People are trying to make most of the limited resources that they have, coming up with new technologies which will make life easier, and expanding all opportunities for the future. Innovations can open new markets for the businesses, simplify transport, ease the human workforce with the help of artificial intelligence (AI), which will bring enormous benefits to the economy and the people. That is why innovations are considered to be the key element for Europe’s future, writes Mario Petkovski.

What are the governments focused on?

The innovation that governments are trying to force, and will contribute the most for the economy in the future is artificial intelligence. Europe is falls back when it comes to investing in AI, compared to US and Asia. In 2016, Europe’s private company investment in AI was €2.4-3.2 billion which is a considerable amount of money, but not that great when you compare it to Asia’s €6.5-9.7bn and North America’s €12.1-18.6bn. Starting from 2018 that is about to change with the declaration of co-operation on artificial intelligence, in which it was announced that Europe’s both public and private investments combined in AI will go up to €20bn per year. Given that two-thirds of Europe’s economy growth for the last couple of years has been driven by innovation, it is not hard to see why governments are starting to make such radical changes on investing in AI.

What are the benefits of artificial intelligence for the economy? 

It is considered that AI will change the world, but everybody is wondering how. Well, the main focus of developing and investing in AI is productivity, lowering costs, efficiency, and automatization. This will enable businesses to lower the costs for making their product or service, and also make it more affordable for their customers. The impact of this technology is so massive that it won’t just change the economy, it will change our lives.

EU predicts that by 2030 AI could contribute up to 13.3 trillion, which is the current output of China and India combined. This can offer transformational possibilities for the society, enabling data processing beyond human comprehension, allowing businesses to grow with speed that has never been possible before.

The benefits to society are major too:

  • Lowering the number of traffic accidents
  • More efficient use of the energy and limited resources
  • More precise operations and health care
  • Lowering the impact on the environment

Europe is so focused on this subject, and it is planning to invest even more resources just to have beneficial growth in the future.

What can industries expect from AI development?

Significant improvements are followed by this technology with endless opportunities in every industry.

Sweden is Europe’s jewel when it comes to innovation, being the most groundbreaking country on the continent, followed by Denmark and Finland. Studies show that Sweden is such an innovative country especially due to their qualitative education. Education is where it all starts, and if the EU is trying to make progress in that area, they should consider making some changes in the education process in less developed countries.

The process from developing to using that technology is slow and expensive, but with all the benefits that can bring to the economy and the society, it is worth investing. Europe should start devoting more attention to AI and add focus on the research, just so it will become a leveled playing field between all countries. Some people are concerned about using AI in their businesses, but eventually in the future it will be a requirement to be more efficient and productive: in the worst situation, the ones who refuse to adapt to this new reality, might be left behind in the competitive market race. Of course, all technologies carry risk. For example, AI developers are concerned about customer privacy, lack of transparency, complexity, and loss of control over businesses, but as the world grows, we should always seek for a better and simpler solution.

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