"Portugal Aims for a Productivity Leap with AI Training"

Portugal is considering retraining approximately 1.3 million workers to focus on generative artificial intelligence (AI) in a bid to boost productivity and close the gap with the European Union average. This figure represents about 30% of the country's workforce. A study published by consultancy firm McKinsey on Monday suggests that Portugal could see significant gains in productivity by adopting automation and generative AI technologies.

Historically, Portugal has struggled with low productivity, contributing an average of just 0.6% to annual GDP growth from 2010 to 2022, well below the EU average of 1.3%. However, the study indicates that with the implementation of generative AI, productivity gains could increase to 3.1% by 2030, approaching the projected EU average for that year.

Generative AI is a type of technology that creates new content, such as text, images, or computer code, by learning from past data, rather than simply categorizing or identifying the data. This capability is seen as a key driver for growth and competitiveness in the global economy.

A senior partner at McKinsey highlighted the importance of this technological shift for Portugal, stating, "This is a unique opportunity for the country to directly compete with the world's developed economies in terms of growth."

The study also emphasizes the need for collaboration between the public sector, private businesses, and educational institutions to facilitate this transition. It's not only about training the workforce but also about adapting organizational processes and procedures. McKinsey pointed out that for every euro invested in generative AI technologies, an additional three euros will be needed to manage organizational changes.

Moreover, the study suggests that approximately 320,000 people currently employed in roles such as customer service or administrative support may need to transition to new jobs as part of this process. This indicates a significant shift in the job market and the types of skills that will be in demand in the near future.

Portugal's ambitious plan to retrain a significant portion of its workforce for generative AI reflects a broader understanding of the role advanced technology will play in economic growth and productivity in the coming years.