Hungary EcoMin: we will carry our own personal AI assistant in our pockets
In his speech, Márton Nagy said that it would be great if, in addition to business, politics would also be aware of artificial intelligence, because this is where the future lies. In France, for example, they are trying to set up an AI ministry, and AI chip companies are emerging one after another in the wake of Nvidia's rise.
He also listed several survey results, analyses and press reports on the matter: according to the IMF, AI could transform 40% of jobs, increase global GDP by $15.7 billion (26%) by 2030 according to PwC, generative AI could potentially contribute between $2.6 billion and $4.4 billion to global GDP annually according to McKinsey, widespread adoption could increase labour productivity by 1.3 percentage points over 10 years according to Goldman Sachs, the generative AI market could grow by an average of 42% annually until 2032 according to Bloomberg.
Márton Nagy said that AI has the potential to reconfigure entire production chains, in food production AI can significantly increase efficiency by analysing the huge amount of data generated by IoT systems, and it has a huge potential in the development of healthcare systems.
However, there are also significant labour market risks associated with AI, with 45% of clerical and administrative jobs at risk, according to Goldman Sachs, and these risks need to be addressed early.
In most areas of artificial intelligence, the European Union is lagging far behind the US and catching-up China, with some technologies at significant risk of becoming monopolies, the minister added. China is currently the leader in AI publications, but the US is the leader in investment.
According to Márton Nagy, through AI, a personal assistant will be available in our pockets, whose voice-based instructions will significantly simplify our lives, but this will require small and powerful chips, and the competition will be decided by who produces and makes them available.
AI is currently the prerogative of large companies, it is far from being socialised, it is more of a closed system that we are talking about.
Another decisive factor in the competition will be who will have access to the AI modules based on the massive databases and language models, the US or China. One could ask what AI will be able to do by incorporating human traits, for example whether man will teach it to lie or manipulate.
The explosive development of artificial intelligence has made it one of the key elements in the US-China conflict, alongside electric vehicles,
said the minister.
From August 2024, the AI Act, the world's first comprehensive artificial intelligence legislation, will come into force. An AI office will be set up in Hungary, submitting proposals to the European Commission, launching sandboxes, etc. In Hungary, the Ministry of National Economy will coordinate these issues.
The focus of Hungary's EU Presidency is also on the AI Act and competitiveness. Márton Nagy said that Hungary lags behind the EU average in both SMEs and large companies.
At the same time, many Hungarian success stories have been born from the application of AI, such as Waberer's, Hell, SEON, ZalaZONE, OTP, Turbine AI and AiMotive.
AI will play a key role in increasing labour productivity and moving up the value chain:15% AI-induced GDP growth and AI adoption above the regional average; 26% average productivity growth in the Hungarian corporate sector compared to 2020; 1 million more value-added jobs supported by AI.
AI is not a technological and economic issue, it is a societal issue, and our National Strategy must respond to the necessary changes, Nagy concluded.
Photo by: Valter Berecz / Portfolio
