Who wouldn’t want to make economic development initiatives better and faster? A.I. has the potential to radically economic development across the board.
A.I. understandably raises important questions about the future of work, productivity, and—specifically for the State Economic Development Executives (SEDE) Network—their potential impact on the field of economic development. And for good reason, experts estimate that A.I. could contribute between $4 trillion and $7 trillion annually to the global economy and that efficiency gains from A.I. could take full effect by as early as 2040.
But what does this mean for economic development leaders and how might these gains be leveraged to improve economic performance at the state level? This was the central question of the SEDE Network’s October 24th webinar: “The Role of A.I. in Economic Development”. The webinar featured Erik Vasilauskas from the W.E. Upjohn Institute and Jeff DeBellis and Maggie Smith from the North Carolina Department of Commerce.
Erik’s presentation explored the impact of A.I. on various occupations and the labor market generally, drawing on data from the O*NET Work Activities Survey and a Pew Research Center study. The research revealed key insights:
- Three clusters based on A.I. exposure: low, medium, and high
- High-exposure occupations tend to have greater educational attainment
- Many high-exposure roles requiring a bachelor’s degree or higher are expected to grow (2023-2033)
Interestingly, despite concerns about A.I.’s impact on white-collar jobs, employment in these professions has slightly increased since the pandemic, aligning with Census Bureau findings that suggest A.I. use is not linked to job declines and may foster growth.
Meanwhile, Jeff and Maggie’s presentation on A.I. in economic development explored how artificial intelligence is set to transform the field of economic development specifically. The presentation highlighted:
- Benefits of A.I. to economic developers, who may increase their productivity
- Practical applications: idea generation, data summarization, and writing assistance
- Comparison of various A.I. platforms
- Importance of critically evaluating A.I.-generated responses
Jeff and Maggie underscored A.I.’s potential to significantly boost productivity and decision-making in economic development while advocating for responsible use of these technologies.
These presentations demonstrate A.I.’s transformative potential for the field of economic development and the U.S. economy more broadly. The insights shared by Erik Vasilauskas, Jeff DeBellis, and Maggie Smith underscore both the challenges and opportunities that A.I. presents for economic development professionals. While concerns about job displacement are valid, evidence suggests that A.I. is more likely to enhance productivity and complement existing roles, particularly in knowledge-intensive sectors.
