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A new report from Deloitte takes a comprehensive look at how G20 countries aim to capitalize on the transformative potential of artificial intelligence, analyzing the technology’s impact on labor markets and economies, both positive and negative.
Noting that the private sector plays a vital role in driving AI adoption, Deloitte presents case studies of some leading companies, showcasing their journeys navigating and implementing AI and the strategies they developed. These case studies can be used to guide other companies as they move along the path of implementation.
“The experiences of companies at the forefront of AI implementation can glean valuable lessons on fostering innovation, upskilling workforces, and creating new job opportunities,” Deloitte says. “This report emphasizes the importance of fostering a collaborative ecosystem between governments, the private sector, and academia to unlock the full potential of AI for the benefit of all G20 countries and their citizens.”
The Impact of AI on the Workforce: Pros and Cons
The International Monetary Fund (IMF) estimates that nearly 40% of global jobs have some exposure to AI. Whether that’s good or bad is hotly debated. Some argue that AI enhances productivity, efficiency, and human potential. However, the extent of generative AI’s (GenAI’s) benefits greatly depend on the outcomes being sought. On the other hand, there are concerns that the rapid transition toward AI-enabled growth will result in rapid job displacement and unequal opportunities for skilled workers, as well as widening inequalities and income disparities.
Is G20 Ready for GenAI?
Private investment in AI has grown significantly and at a rapid pace over the past decade. However, there is considerable variation in the level of investment among G20 countries. According to a 2024 report by Institute for Human-Centered Artificial Intelligence Stanford, the United States once again led the world in terms of total AI private investment. In 2023, the $67.2 billion invested in the United States was roughly 8.7 times greater than the amount invested in the next highest country, China ($7.8 billion), and 17.8 times the amount invested in the United Kingdom ($3.8 billion).
When aggregating private AI investments since 2013, the country rankings remain the same. The United States leads the way with $335.2 billion invested, followed by China with $103.7 billion, and the United Kingdom at $22.3 billion. Israel at No. 4 had $12.83 billion and Canada at No. 5 had $10.56 billion.
The digital infrastructure also varies significantly across G20 countries, Deloitte notes, with high-income countries significantly more advanced in building a necessary digital foundation, compared to middle- and low-income countries. Digital infrastructure in high-income G20 countries is characterized by extensive broadband coverage, greater and reliable internet connections, and ubiquitous mobile networks.
Mind the Skills Gap
In middle-income G20 countries, especially when compared to high-income countries, there is a disconnect between qualification—or workers whose field of study matches job requirements—and the job itself. Deloitte notes that since the internet boom, this challenge has only become more apparent. “As digitalization impacts almost every aspect of modern life, businesses struggle to find and attract individuals with the right set of skills for the constant-changing job requirements, while dated curriculums, slow modernization of educational offers, and disparities in education accessibility make these skills harder to find,” the report says.
In 2020, a Deloitte Global survey found that 68% of the executive respondents reported a moderate to extreme skills gap. As AI matures, the survey indicated that this skills gap may only increase. This was seen in an increased proportion of executives reporting a major skills gap as their organization undertook more AI-related systems.
As AI grows in its abilities, the necessary skills to manage it will also evolve. “Demand for AI researchers declines as organizations move up the AI experience curve, while demand for business leaders increases as there is now a greater need to translate the results and outputs produced by AI systems into business decisions and actions,” Deloitte says.
A Country-by-Country Look at AI Policy
The report provides a country-by-country overview exploring the strategies of some G20 countries, highlighting their objectives, key initiatives, and the broader implications for global AI development. According to Deloitte, national strategies for AI adoption can ensure that the technology remains human-centered and that its benefits are sustainable. They highlight a 2023 analysis by the Organisation for Economic Co-operation and Development's AI Policy Observatory, which found more than 50 existing national and government-wide initiatives aimed at promoting trustworthy AI.
How Are Companies Handling the Challenges?
The report provided case studies from four major organizations on how they developed corporate-level AI policies. IBM, despite its history with AI, faced internal challenges when implementing AI solutions at the corporate level. This includes the need to reskill and upskill to adapt to new AI technologies and move from piloting AI tools to successful deployment across the company. To build trust among its employees, IBM focused on demonstrating how automation can streamline operations and committed to offering ongoing opportunities for skill development. The company also works closely with employees to determine which tasks and processes are prime candidates for automation and AI.
Argentina-based software development company Globant S.A. is all in when it comes to AI. Nearly all teams (98.9%) now have a designated AI leader, and more than 200 hours of training are conducted with employees. However, incorporating large language models (LLMs) brought about several challenges, with security being a top priority, especially when handling sensitive data. A lack of clear public policies surrounding AI ethics and data privacy adds another layer of complexity, as did the rapid evolution of AI models. Globant addresses these challenges by leveraging a platform that provides a secure and flexible environment for exploring different AI models.
Synthesis Software Technologies (Pty) Ltd., based in South Africa, faced several challenges when implementing internal AI solutions, such as selecting the appropriate tools that addressed the most pressing needs. The use of AI tools created wariness among employees as certain functions were seen to become redundant. However, with retraining and upskilling, the concerns of AI replacing developers were replaced with an understanding of how AI tools would augment existing roles and not lead to job displacement.
Furthermore, new internal policies were introduced to ensure proper use of AI tools, with an emphasis on data security and privacy compliance. Synthesis gathered key stakeholders to tackle the challenges of AI tool implementation through a strategic approach. This included multiple rounds of testing for free and paid tools, a comprehensive training and upskilling program, and various awareness sessions within the organization. The company also engaged with external experts and policymakers to evaluate the potential benefits and impacts for customers across different markets and industry segments.
India’s BetterPlace Safety Solutions Private Limited likewise encountered several challenges while implementing AI solutions. It recognized that rolling out new AI models can be disruptive, potentially impacting customer operations. With this in mind, gradual implementation would be most strategic. AI models were deployed in phases, starting with a limited scope. Expansion continued as confidence increased. In order to gain insights into the effectiveness of AI models, as well as note future areas of improvement, the company tracked key performance metrics.
BetterPlace also addressed the legal implications of using publicly available datasets. Their legal team was engaged proactively to vet data sources and assess the implications of utilizing them. Once necessary approvals were obtained, the company moved forward with implementation.
It Takes a Village to Raise AI’s Potential for Good
In its report, Deloitte recognized that no single country or company is an island when it comes to maximizing the benefits of AI in the workforce and beyond. By learning from each other, all stakeholders can raise their collective game. “Effective dialogue and collaboration between public and private actors within G20 ecosystems will be essential in maximizing the positive impacts of AI,” Deloitte says. “Open communication and coordinated efforts will ensure that AI fosters innovation, economic growth, and a future where no one is left behind.”