Riding the Wave of Technological Change: AI and National Productivity (Creative Destruction)

Technology has been advancing at a rapid pace for decades, especially since the internet came online. Some of us were early adopters and grew alongside the digital era as it evolved. The next generation will need to become equally comfortable with AI, which is built on the technological progress of previous decades. As technology continues to accelerate, its impact on the workforce will grow as well.

Let’s look at some of that impact.

First, the article below suggests that increases in labor productivity may double. This is good news for advanced economies, but it also means that these countries will continue to adapt and innovate, pushing technology even faster through competition among major manufacturing and intellectual industries. Many tasks will become simpler and more automated, saving people significant time.

Riding the wave of technology
change.
Kawabonga!

Second, we must continue to develop human capital to keep pace with advanced technology. This means workers will need ongoing training and education—often while maintaining full-time jobs. Few people can afford to take years off mid-career to return to school, so they will need flexible solutions that support continuous learning. This is where professional training programs and online education become essential.

From an economic perspective, both markets and technology are constantly evolving, and we must adapt to keep up. Jobs will change as older products and services are replaced by newer, more efficient ones—an example of creative destruction (Very good economic article so you might want to read it.). The pressure to adjust will be felt not only by individuals but by companies, institutions (fast change) and leaders as well.

The key takeaway is that a willingness to update one’s knowledge and take ownership of one’s future will determine who adapts and who falls behind. We will also need future leaders that are increasingly comfortable with technology and change. Very little will remain the same, and even that will change more quickly than before. Consider creating your own roadmap for understanding emerging technologies and applying them in ways that advance your goals, as well as those of organizations and society.

Updated technology requires updated human capital and modern infrastructure. We are likely to experience significant changes in the near future, and each of us must decide whether to ride the wave like a surfer—or be swept away by it.

Estimating AI productivity gains from Claude conversations