Can AI boost productivity in Finland?

AI as a driver of productivity growth

Initial research suggests that using artificial intelligence can significantly improve productivity in various types of knowledge work. Based on these studies, employees with a lower level of knowledge would benefit the most from using AI. With the adoption of AI, quality of work and employee satisfaction often seem to increase, too.

A study on people who work as call centre agents revealed that the agents using AI resolved 14% more issues per hour on average (Brynjolfsson, E., et al. 2023). Less experienced workers gained the most from using AI, as their productivity increased by 34%, while the most experienced workers had very little to gain. What these results show is that AI can help capture the knowledge that already exists among the workers. 

In another study, consultants were able to perform their tasks 25% faster with the help of AI (Dell’Acqua, F. 2023). However, AI did not prove to be beneficial in all of the 18 tasks the consultants were asked to perform. In some of the tasks the use of AI, in fact, increased the number of incorrect responses. 

Studies investigating the impact of AI tools on software development (Pent et al. 2023) and on the examination of X-ray images (Gaube et al. 2023) also displayed significant improvements in productivity. 

This shows that AI can be used for a wide variety of tasks. The best results are achieved by combining human input and AI, allowing AI to supplement human work and boost productivity. AI would therefore seem to elevate human work rather than replace it entirely. 

Workers with a higher education and higher income are more exposed to the effects of AI. According to a study by ETLA Economic Research (Kauhanen, A. et al. 2023), one in five Finns have occupations in which at least 50% of their tasks are exposed to AI. Two-thirds of Finnish workers can use AI in 20% of their tasks. 

AI is evolving in leaps and bounds as a result of increased computing power and major investments in the technology, so it’s difficult to say what it will eventually be capable of. On the other hand, businesses will need time and resources to fully deploy AI, which means that the impact on productivity gains in terms of the entire economy will be seen in the long term.  

A / Integration of AI in companies 

% in 2023

Finland has potential to leverage AI

Finland’s productivity trend has been stagnant for the past 15 years. One of the main reasons has been the decrease in intangible investments, such as investments in R&D in particular. 

AI creates an opportunity for Finnish companies to get back on the productivity growth track. Integrating AI into everyday work means that companies need to be willing to invest in it, but it doesn’t necessarily require big advances in AI technology, a field in which major innovations come from the US and China at the moment. 

Finland is the highest ranking country in the EU’s Digital Economy and Society Index (DESI). The index tracks areas including digital skills, connectivity, integration of digital technology and digital public services. Other Nordic countries are also top performers in the index. 

Due to its high digital readiness, Finland is in an excellent position to take full advantage of AI. Finland ranks third among the EU countries in the integration of artificial intelligence, with more than 15% of Finnish companies currently using AI. The best way to prepare for the AI-driven transformation is to try and implement AI tools as quickly as possible.

This article originally appeared in the Nordea Economic Outlook: Falling into place, published on 24 April 2024. Read more from the latest Nordea Economic Outlook.