Artificial intelligence and robotics: inevitable and full of opportunities

Artificial intelligence (AI) is on the rise. Nevertheless, Europe is lagging behind the US and China. The EU should put its full weight behind the acceleration of AI and robotics in Europe. Some people are concerned by this development. What will happen to service and manufacturing jobs as automation accelerates as a result of AI and robotics? Such concerns are understandable but should not be the main approach to the subject. Automation is hardly a new phenomenon. In some ways, it dates back to the industrial revolution. The development of AI and robotics is in fact a continuation of a long development, in which jobs have moved upwards in the value chain – becoming more productive and better paid jobs. The question should not be if AI will benefit Europe, but rather, what the EU should do to harvest the full potential of AI.  

AI and robotics present new possibilities for all people in Europe. This is particularly the case for the manufacturing sector. Not only can technology in production enhance productivity, robots can also remove obstacles and better our working environment. Robots can help improve the working conditions in the manufacturing sector by phasing out dangerous and tedious tasks that traditionally have been done manually.

Will this development lead to mass unemployment? The answer is surely no. The use of AI and robotics will ensure manufacturing and production jobs in Europe. Digitalisation and automation will remove incentives to relocate factories to other regions where production costs are lower. At the same time, high-quality jobs will be created to support digitalized and automated production. Countries like Denmark, Sweden and Germany have the highest numbers of robots operating in their manufacturing sectors. With low unemployment and a significant contribution to GDP growth, the manufacturing sectors in these countries are flourishing. Further to this, Denmark, Sweden and Germany have all seen factories and manufacturing jobs return back home after de-localization in the 00s to countries outside Europe where labour costs were lower. In short, the more advanced industry becomes, for example, by means of digitalisation, the better the manufacturing sector will perform. This development will be supported by the creation of new high-value jobs that pay better than traditional manual jobs in the manufacturing sector.

The proliferation of robotic automation is inevitable. The question should therefore rather be: what can Europe do to take full advantage of the opportunities presented by AI and robotics? The EU should embrace the era of digitalisation wholeheartedly for the sake of consumers, manufacturers and employees alike. Sharing of data is vital. The European Commission’s proposal on the free flow of non-personal data is a welcome step in the right direction. It ensures the right to store and move non-personal data freely in the EU, while also removing unnecessary restrictions and minimising legal uncertainty.

To successfully harvest the potential of AI and robotics, the EU should ensure that any gaps in legislation are filled in and that businesses continue to prepare and implement the General Data Protection Regulation, which will juxtapose data privacy laws across Europe.

Industry is also awaiting the European Commission's upcoming AI initiative. This initiative should include guidance on the future use of AI and call for more EU funding to support the development and deployment of AI and robotic technologies. Taxation on robots, on the other hand, should be avoided. Quantifying taxes based on efficiency compared to a human would create disincentives to invest in technological advancement, and hence hamper the growth potential of the manufacturing sector.

Instead, the EU should commit to the widest possible sharing of data, while promoting AI and robotics and support for the development of these technologies. This will allow innovation to boost and increase Europe’s competitiveness against the United States and China, thereby contributing to a prosperous future for Europe.