The Impact of AI on Economy and Government in 2020

Rarely a piece of technology can have a domino effect on governments and economy. However, #AI has proven that the opportunity is more than just digital transformation. It is about to create an intelligent economy.

Artificial Intelligence is still in the early days and organizations and government are still thinking about the potential use cases and how they can benefit AI to reduce cost and improve operational efficiency within their internal environment. This is a great steps to build a strong foundation inside the government on how to get help form AI to build an intelligence economy at scale.

It all starts with funding AI startups. US is already ahead of the game by far by funding 1,393 startups and China, Isreal and UK are followers. Here is a map that shows the distribution of AI startups globally.

Both China and US are massively investing on AI startups to build a nation wide pool of AI talents and capabilities within the county. China has seen 190% increased AI patents which is a massive growth. Part of this growth is driven by the digital infrastructure that these countries have built.

From the federal government perspective, AI is still a tool to control cost and automate the processes to control the buttomline. However, governments know that AI has greater potential to build completely different services for citizens. Things that was not possible to even imagine before, are now becoming MVPs and tested by startups.

Task automation and working with large amount of data sets, which is very hard to deal by a human, are being performed by AI engine. Chat bots are very popular use case as well in which citizens can ask basic questions about their status and different work flows and forms that are necessary to fill and the bot will guide them through the process. Making predictions based on historical data is the other showcase on how AI can be useful in terms of predicting trends for future.

Combined with other technologies such as Blockchain and Big Data, State and Federal Government can implement solutions that can benefit citizens and make their life much more simpler. Imagine when you have your child born, or filing for job redundancy benefits or other life triggers, you immediately can receive your benefits from government into your accounts without even calling someone. Automation is the key part here as we want to minimize the unnecessary communications between people and government. In healthcare, AI can immediately detect and prevent disease from spreading among population by searching patterns when particular disease is being detected in certain areas. Government can monitor social media and the internet for feedback and complains and immediately address the issues raised by people and be more responsive. Police can using AI to predict crime, traffic congestion and other high value activities which will lead to safer city and neighborhood for people.

Interestingly, United Nation is using AI to perform live interpretation services for participants and human interpretations are being used later to fix the potential errors for press release.

AI also can help a lot in cost savings for government as a lot of government workers are doing simple repetitive work which AI engine can easily do these types of tasks 24/7. Here is a great read from Deloitte on this subject:

I personally believe governments will need to embrace AI sooner than later and to be able to gain the trust for their people and make transparent process to make decisions for their people.

I Sometimes Send Newsletters

© 2020 by Houman Asefi