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June 15, 2024
Valahia.News
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Digital International News Romanian News Tech

Romania’s Economy Poised for Billion-Euro Boost with Generative AI Adoption, Google Survey Reveals

A recent survey titled “The Economic Opportunity of AI,” commissioned by Google and conducted by the Scandinavian management consultancy Implement Consulting Group, reveals that Romania’s GDP could significantly boost EUR 14 to EUR 16 billion over the next decade if the country embraces Generative AI comprehensively. This increase represents a 5% growth in GDP, primarily attributed to enhanced productivity among more than half of the Romanian workforce.

From this perspective, Romania is already one of Europe’s top countries regarding generative AI tools. TUYA Digital, an SEO company based in Bucharest, has recently become the first European agency to offer Generative Engine Optimization, which adds value to websites regarding AI Overviews.

As mentioned in our previous communication on our social media channels and website, SEO is no longer enough. GEO has to be considered if you need to rank in 2024 and prepare your business for the Generative Engines. AI is here; we have to adapt to this reality, and if you are the owner of a business that needs online optimization, you have to dive deep into GEO – Generative Engine Optimization. This will ensure clients and your survival in the years to come.

Adam C, digital strategist @TUYAdigital for Valahia News on Generative Engine Optimization

From GEO agencies to crypto marketing agencies and from repetitive task automation to jobs that require creativity, AI is here not only to help but also to replace humans. And this is the other side of the AI coin.

From this perspective, the report indicates that employees can redirect their efforts towards more value-added activities by automating various tasks. However, delaying the adoption of this technology by five years could reduce the potential GDP gain by 1%.

The study forecasts that generative AI could impact up to 4.5 million jobs in Romania. It is anticipated that 54% of the jobs (approximately 4.2 million) will be augmented by automating specific tasks and supporting complex problem-solving and product design.

This is particularly relevant for professionals in science and engineering, educators, and managers. Meanwhile, about 3.3 million jobs (42%) are expected to remain largely unaffected by AI, including roles like operators, construction workers, and personal care workers.

Conversely, around 4% of jobs (0.3 million) may be fully or partially displaced due to automation, affecting occupations such as bookkeepers, clerical support, and contact center salespersons. The emerging AI economy jobs are expected to offset these losses.

Generative AI is poised to enhance productivity across various sectors, mainly services. In Romania, industries such as information and finance, business services and real estate, public administration, education, and healthcare are predicted to experience the highest productivity gains, with peak increases between 1.4% and 1.5%.

Despite the potential benefits, adoption rates of AI in Central and Eastern Europe (CEE) are low. The survey highlights that only 4% of CEE companies and 2% of Romanian companies had implemented at least one type of AI technology by 2023, compared to an EU average of 8%. Nonetheless, 40% of Romanian businesses plan to invest in AI-based automation within the next five years. The primary barrier to AI adoption, cited by 61% of CEE companies, is the cost of AI tools.

The CEE region, including Romania, falls behind the EU average and is a global leader in AI adoption. To harness the full potential of AI, the survey suggests that these countries need strategic governmental policies, investment in education, and support for local innovation and AI commercial initiatives.

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