Can AI Enhance Labor Productivity Growth in APEC Economies?
Synopsis
Discover how AI could revolutionize labor productivity growth in APEC economies. OECD Chief Mathias Cormann highlights the potential benefits and the need for strong policy backing to facilitate access to AI technology. Join the conversation on the future of productivity and economic resilience.
Key Takeaways
AI is expected to contribute significantly to labor productivity growth.
Small and medium enterprises need better access to AI technology.
Robust policy support is essential for realizing AI's potential.
International cooperation can enhance economic stability.
Supply chain resilience is critical in today's geopolitical climate.
South Korea, Oct 29 (NationPress) Artificial intelligence (AI) is poised to significantly enhance labor productivity across Asia-Pacific economies in the next decade, as stated by the Secretary-General of the Organization for Economic Development and Cooperation (OECD) on Wednesday. He emphasized the need for robust policy support to increase access to this transformative technology.
During a session at the Asia-Pacific Economic Cooperation (APEC) CEO Summit, OECD head Mathias Cormann revealed that the organization forecasts AI will add between 0.2 and 0.4 percentage points to yearly labor productivity growth in the upcoming decade, according to reports from Yonhap news agency.
This business-focused event commenced alongside the APEC leaders' summit, tackling critical topics such as AI advancements, energy transitions, and the influence of Korean soft power.
"APEC economies possess numerous advantages, including integration into global supply chains, a skilled workforce, and robust digital connectivity," he remarked.
To maximize the benefits of AI, Cormann urged for an expansion of AI technology's availability, particularly for small and medium-sized enterprises.
He also highlighted the necessity for affordable connectivity and fostering competitive AI ecosystems to improve service delivery at lower costs.
Moreover, Cormann pointed out the significance of enhancing international tax collaboration to establish a more predictable and stable business landscape.
Additionally, he stressed the importance of bolstering supply chain resilience and upholding rules-based international trade to mitigate the risks stemming from escalating geopolitical and economic tensions.
In related news, it is anticipated that Nvidia Corp., the US tech giant, will supply AI chips to South Korean firms, including Samsung Electronics and SK Group, as reported on Wednesday by Yonhap news agency.
This week, Nvidia's CEO, Jensen Huang, is expected to attend the APEC CEO Summit in Gyeongju, a business-centric forum occurring alongside the annual APEC leaders' summit.
Sources indicate that Nvidia is likely to finalize supply agreements with Samsung Electronics, SK Group, Hyundai Motor Group, and Naver Corp., with details anticipated to be announced on Friday.
Point of View
It's clear that the integration of AI into the labor market presents significant opportunities for economic advancement in APEC nations. However, it is equally crucial to address the challenges faced by smaller businesses in accessing this technology. The call for policy support reflects a balanced approach to ensure equitable growth across the region.
NationPress
12 May 2026
Frequently Asked Questions
How can AI impact labor productivity?
AI can enhance labor productivity by automating tasks, improving efficiency, and enabling better decision-making, which ultimately leads to increased output.
What role does government policy play in AI adoption?
Government policy is crucial in facilitating access to AI technology, especially for small and medium-sized enterprises, which may lack the resources to adopt these innovations.
Why is international tax cooperation important for AI development?
International tax cooperation creates a stable and predictable environment for businesses, encouraging investment in AI technologies and fostering innovation.
