AI and Technological Innovation Redefine the Future Impact on the Global Economy and Society

As artificial intelligence (AI) and related technological innovations are rapidly developing worldwide, fundamental changes are accelerating across society, from our daily lives to the global economy. Beyond simple technological advancement, AI is restructuring industrial structures, changing the nature of jobs, and having a significant impact on global economic and political dynamics.

[Korean Today] Rapid development of AI and expansion of application scope © Reporter Park Jeong-hee

AI has achieved remarkable results through the development of learning and problem-solving abilities based on accumulated data. In particular, AI technology is being applied in various fields such as natural language processing, computer vision, autonomous driving, medical diagnosis, and financial analysis, and the speed is getting faster over time.

[Korean Today] Maximizing production efficiency through smart factories ©Reporter Park Jeong-hee

The development of AI is bringing about major changes, especially in core industries such as manufacturing, finance, healthcare, transportation, and energy. For example, in manufacturing, production efficiency is being maximized through smart factories, and in finance, AI-based algorithmic trading and risk management systems are being introduced to manage the volatility of financial markets. In the healthcare sector, early diagnosis and personalized treatment using AI are becoming widespread, and the development of autonomous driving technology is changing the transportation paradigm.

The social and economic impact of AI

The development of AI brings both economic opportunities and challenges. AI has the potential to create new industries and jobs and contribute to global economic growth through increased productivity. AI-based innovation is a key factor in helping companies secure a competitive edge, creating new markets and reorganizing existing industries.

However, the spread of AI is also causing serious changes in the labor market. In particular, the advancement of automation technology is reducing jobs that require repetitive tasks or simple labor, which is raising the need for job redistribution and retraining. According to a report by the World Economic Forum (WEF), about 85 million jobs are likely to disappear due to AI and automation by 2025, while 97 million new jobs are expected to be created. However, in this transition process, it remains an important task to support workers to acquire and adapt to new skills.

As AI develops, discussions on ethical and legal issues are also actively taking place. Major issues include bias, lack of transparency, and privacy protection issues that may arise in the decision-making process of AI. For example, algorithmic bias is being questioned in hiring, loan review, and judicial decisions where AI is used, and it is being raised that this bias may deepen social inequality.

[Korean Today] Discussions on ethical and legal issues are also actively underway as AI advances © Reporter Park Jeong-hee

There are also growing concerns that AI technology could be used as a means to enhance human surveillance and control. In particular, criticisms are being raised that inappropriate use of AI, such as facial recognition technology or predictive policing, could infringe on individual freedom and rights. Accordingly, the need for legal regulations that establish ethical standards for the development and application of AI and ensure fairness and transparency is being emphasized.

Global Competition in AI and Technological Innovation

AI is also becoming an important factor in the technological competition between countries. Major countries such as the United States, China, and the European Union (EU) are fiercely competing to secure global leadership by expanding research and investment in AI technology development. In particular, China is rapidly growing in the AI field through government-led AI strategies and has set a goal of becoming the world’s leading AI powerhouse by 2030. On the other hand, the United States is leading the development of AI technology centered on innovative companies in Silicon Valley, and is making efforts to secure standardization of AI technology and global regulatory leadership.

The EU is supporting AI research and development through the ‘Digital Europe Program’ and is seeking to secure global leadership in AI ethics and regulation. In 2021, the EU published a draft AI regulation, suggesting an approach that differentiates the intensity of regulation applied according to the level of risk of AI. This focuses on promoting AI innovation while ensuring compliance with ethical standards.

The Future and Preparation for AI

AI has the potential to fundamentally reshape future society. The advancement of AI technology will bring about changes across the economy, society, and politics, and redefine the relationship between humans and machines. AI will increasingly penetrate our daily lives, and its role will grow in various fields such as education, medicine, finance, law, and public services.

To respond to these changes, governments, businesses, and academia must establish policy and institutional foundations for the responsible development and use of AI technology. A comprehensive and collaborative approach is needed to ensure the ethical use of AI and minimize the social side effects of technological development.

The future of AI and technological innovation will be a complex environment of challenges and opportunities. We must strive to ensure that AI can be combined with human creativity to become a tool for creating a better world, and this requires continued research, ethical considerations, and global cooperation.

The future led by AI is now a reality, not an imagination. In this wave of change, humanity needs to deeply reflect and prepare for how to utilize AI and how to solve problems that arise in the process. This will be an important factor in determining the quality of the future we will face.