The Growing Impact of AI on Business and Education
Forecasts about the economy can often miss the mark, as seen when fears about Donald Trump’s tariff plan in April turned out to be unfounded. However, a notable shift this year has been the increasing presence of artificial intelligence (AI) in our daily lives. For instance, I met someone organizing an international conference who shared how AI significantly cut down the time it took to prepare an information pack for attendees.
This year has seen AI transition from a distant concept to something that businesses must seriously consider. Its influence is a significant factor in the ongoing rise of the stock market, although many are still figuring out what it all means for the future.
Dr. Ciarán Seoighe, a scientist and head of Forensics Ireland, spoke to a committee about the divided opinions on AI: some view it as a revolutionary tool, while others see it as a potential threat to humanity.
In this environment, both businesses and policymakers are quick to mention AI, but their strategies often seem vague and unfocused. Many companies are investing heavily in AI, yet only a small percentage report higher profits because of it. A survey showed that just 15% of businesses believed AI had positively impacted their profit margins. While it’s early days, it’s clear that tools like AI summarization and chatbots still have room for improvement.
A recent economic outlook noted that AI’s possible effect on productivity across developed nations could range from negligible to about 6.8% over the next decade. Gerard Brady, chief economist at Ibec, pointed out that we are still in the early stages of AI development, making any long-term economic predictions largely speculative.
Despite this uncertainty, significant investment in AI continues to fuel growth in the U.S. economy, driving stock prices upward for key companies in the sector. However, there’s a risk of a market correction, with forecasts suggesting some companies might cut back on AI investments in the coming year. The Economic and Social Research Institute (ESRI) highlighted the potential repercussions for the Irish economy if major U.S. firms face difficulties, as they are substantial investors and employers here.
We’re already witnessing changes in the job market, particularly in youth unemployment and the slight increase in 2024 graduates still seeking work. While it’s uncertain how much AI is influencing these trends, it appears to affect graduate hiring in professional services. AI can take over some of the basic tasks usually assigned to entry-level employees, leaving companies uncertain about their hiring strategies.
All businesses still require new talent. However, much like the impact of the internet, AI is expected to bring about significant changes in the future. Alan Smeaton, an expert from DCU, emphasized a principle known as Amara’s Law, which suggests we often overrate technology’s short-term impact while underestimating its long-term effects.
In light of these developments, education is a crucial area for national policy. It’s not just about students using AI for assignments; it’s about how we introduce the technology in schools. Smeaton pointed to Estonia, where the government collaborates with businesses to provide educational tools that promote active learning rather than rote memorization.
While new guidelines for schools in Ireland aim to address these challenges, there’s still a long way to go. The curriculum, especially at the third level, may need significant updates. For many graduates, particularly those with standard business degrees, finding entry-level jobs may become increasingly difficult.
To truly capitalize on the opportunities posed by AI in the long term, Ireland needs to revamp its education system, much like in earlier technology and pharmaceutical investments. As Smeaton states, it’s time to rethink curriculums and focus on creativity and practical skills that remain valuable in an AI-driven world. Relying solely on memorization won’t cut it anymore when AI can deliver answers instantly.
