Members’ Corner – New report: Artificial intelligence can significantly increase Norway’s value creation EuropeOn’s Norwegian member Nelfo, in cooperation with the Norwegian Confederation of Businesses NHO, has asked the independent analysis company Samfunnsøkonomisk analyse to look at the benefits, opportunities and barriers for artificial intelligence in Norway. The report shows that artificial intelligence can provide a large increase in value creation, and that the gains can be significant if we get started quickly.“Digitalization and artificial intelligence can give us more value creation, more welfare and more prosperity. Much more. And the faster we get started properly, the greater the gains will be for the whole society”, says NHO CEO Ole Erik Almlid.Society’s challenges are in the queue, and Samfunnsøkonomisk analyse has looked at how artificial intelligence (AI) can be part of the solution. The report was commissioned by NHO, Nelfo, Abelia and Finans Norge.Great possibilitiesSamfunnskonomisk analyse estimates that digitalization and AI can provide significantly increased value creation up to 2040. The estimate is based on two calculations:Increased use of generative AI can increase value creation in Norway by NOK 2,000 billion in total for the period up to 2040.Use of other advanced digital technology and other AI (non-generative AI) can increase value creation in Norway by a total of NOK 3,600 billion in the same period. In total, SØA’s calculations show that the potential in digitization and AI can thus reach NOK 5,600 billion in this period.Solving societal challengesThe analysis points out that increased use of artificial intelligence can solve major societal challenges such as falling productivity growth, labour shortages and the climate and energy transition.“We are in the middle of an AI revolution, and we need more knowledge about what significance it may have for Norway. This report is a contribution in this context, and the calculations give reason for optimism even though it is always difficult to look into the future”, says Almlid.“The green transition is made easier by AI. The technology helps us use energy even more efficiently and reduces material use in installations, buildings, and infrastructure. Furthermore, safety will be enhanced and maintenance will be improved with the use of image interpretation, sensor technology, and data analysis”, says Ove Guttormsen, CEO of Nelfo.The analysis shows that the faster we adopt generative AI, the greater the gains. If the implementation is postponed for five years, the contribution to value creation will be reduced.Most common obstaclesLack of competence to use tools and lack of insight into how AI can solve business challenges are the most common obstacles to using AI tools.“A unified working life needs more skilled workers. AI will, on the one hand, free up labour and, on the other hand, the technology will create new jobs. There is uncertainty about regulations affecting artificial intelligence. We need regulatory sandboxes and a good system for guidance on legal and ethical issues related to the use of AI. A digital wash of existing regulations is necessary”, says Guttormsen.NHO and associated organisations believes the following must be done in order to realize the potential for value creation through AI:• Significantly more investment must be made in skills development• Norwegian companies must have the same rules of the game for digitization as the rest of Europe • Regulations and legislation must be clarified as quickly as possible • Public and private sector must interact more closely • Public data must be shared to create value • Infrastructure for artificial intelligence must be strengthened Read more about the report (in Norwegian).