Source: International Monetary Fund
Summary
This paper examines the economic impact of Artificial Intelligence (AI) in Korea. Korea is among the global frontrunners in AI adoption, with higher adoption rates among larger, younger, and technologically advanced firms. AI holds the promise for boosting productivity and output, though the effects are more pronounced among larger and mature Korean firms. About half of jobs are exposed to AI, with higher exposures among female, younger, more educated, and higher income workers. Korea’s strong innovation and digital infrastructure highlights its AI readiness, while enhancing labor market flexibility and social safety nets are essential to fully harness AI’s potential.
Subject: Aging, Digitalization, Employment, Human capital, Labor, Labor market policy, Labor markets, Population and demographics, Production, Productivity, Technology
Keywords: Aging, AI, Artificial Intelligence, Digitalization, Employment, Growth, Human capital, Labor force, Labor market, Labor market policy, Labor markets, Productivity, Productivity, Total factor productivity