Portugal Could Boost Economic Growth by Embracing AI Training for Workforce
Portugal has an opportunity to increase its productivity by retraining a big portion of its workforce to work with artificial intelligence. This was found according to a new study by consulting firm McKinsey. The study reveals that by 2030 Portugal could close the productivity gap with the European Union. They could do it if they successfully retrains around 30% of its workers (about 1.3 million people) to adapt to generative AI technologies.
Current Productivity Challenges
Even though Portugal is a key player in various sectors their productivity growth has lagged behind much of the EU in recent years. Between 2010 and 2022 the country’s productivity gains contributed an average of only 0.6% to its compound annual GDP growth. This is a figure that falls short of the EU average of 1.3%. This slow growth has been one of the factors holding back Portugal's overall economic performance in comparison to its European neighbors.
The AI Advantage
McKinsey's report suggests that integrating AI and automation into Portugal's workforce could significantly increase productivity. By 2030 if properly implemented AI could contribute 3.1% to GDP growth. This is about triple the current rate. Generative AI can create new content and automate complex processes. It has the potential to revolutionize industries like manufacturing, services and healthcare. By streamlining operations and enhancing decision making Portuguese businesses could see significant improvements in efficiency and innovation.
Retraining the Workforce
The study highlights the need for extensive retraining programs in Portugal to help the workforce adapt to the rapid technological changes caused by AI and automation. Around 30% of the country's workers across finance, customer service and manufacturing will need to be retrained to effectively use AI tools. This investment in human capital is important to make sure that they get productivity gains from AI adoption. Investing in workforce readiness will give nations a competitive edge in the global AI landscape.
Bridging the Productivity Gap
Portugal's productivity gap compared to the EU is a concern for policymakers. Closing this gap will strengthen Portugal's EU position and attract international investors and companies. Encouraging AI and automation technologies in government policies and business initiatives could boost GDP growth, job creation and innovation across multiple sectors.
Conclusion
McKinsey’s study sends a strong message: investing in AI training for Portugal's workforce to close the productivity gap with EU counterparts unlock new economic opportunities, foster sustainable growth and position Portugal as a leader in the digital age.
