• July 16, 2024

The Economic Potential of Generative AI in Turkey

 The Economic Potential of Generative AI in Turkey

Artificial intelligence (AI) technologies are poised to revolutionize business practices globally, and Turkey aims to harness this technological wave. A recent study by Implement Consulting Group, commissioned by Google, analyzes how generative AI (GAI) can boost Turkey’s economy.

The use of generative artificial intelligence, which has significant potential for both individual use and businesses, is increasing. The findings of the research reveal that productive artificial intelligence technologies can increase Turkey’s annual GDP by 5%.

Economic Potential

Generative AI technologies, if widely adopted, could increase Turkey’s annual GDP by 5%. This equates to roughly TRY 1.2 to 1.4 trillion (USD 50-60 billion). The economic benefits are expected to come from three main areas:

  • Increased Productivity: People working with GAI will see productivity boosts.
  • Time Efficiency: Automation by GAI will free up time from routine tasks.
  • Value Reallocation: The freed-up time can be redirected to more value-creating activities.

GAI’s adoption in Turkey could significantly enhance productivity, free up valuable time through automation, and reallocate efforts to higher-value tasks.

Impact on Employment

The report anticipates that 55% of jobs in Turkey will integrate GAI, while 41% will remain unaffected. Only 4% of jobs are expected to be highly exposed to GAI’s impacts. Importantly, the creation of new jobs due to automation and technological advancements is predicted to balance out job losses, maintaining steady unemployment levels.

GAI is set to transform employment in Turkey, with most jobs integrating AI seamlessly, ensuring balanced job creation despite automation.

Key Benefiting Sectors

GAI’s economic potential is particularly high in certain sectors:

  • Trade, Transport, and Tourism: Significant gains are expected as these sectors leverage AI for efficiency and innovation.
  • Manufacturing and Construction: AI-driven automation and smart technologies will enhance productivity.
  • Energy and Water: Improved management and innovative solutions will drive value.
  • Knowledge-Intensive Business Services: This sector stands to see the most significant value addition from AI.

To fully harness GAI’s benefits, Turkey must focus on upskilling its workforce, boosting R&D, and accelerating commercialization.

AI Readiness

While Turkey has a strong operational environment for AI, it lags in strategic and infrastructural areas. To fully realize GAI’s potential, Turkey needs to:

  • Upskill the Workforce: Equip workers with new AI-related skills.
  • Boost R&D Activities: Increase research and development efforts.
  • Accelerate Commercialization: Enhance the transition from innovation to market-ready products.

The Way Forward

Turkey’s national AI strategy needs to foster collaboration and scale up innovation. The following steps are essential:

  • Invest in Innovation: Support AI research and development.
  • Create a Favorable Regulatory Framework: Establish regulations that promote AI use.
  • Promote Universal Accessibility: Ensure widespread and equitable access to AI technologies.
  • Develop Human Capital: Train a workforce adept at using and advancing AI.
  • Invest in AI Infrastructure: Enhance AI-related infrastructure and computing power.

Strategic investment in AI research, regulatory frameworks, and human capital is crucial for Turkey to lead in the AI revolution.

Generative AI has immense potential to transform Turkey’s economy, but this requires strategic action. By reskilling the workforce and fostering innovation, Turkey can capitalize on AI-driven opportunities. With a forward-looking approach, Turkey is well-positioned to strengthen its presence on the global technology stage.

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The economic opportunity of AI in Türkiye. Generative AI could potentially boost Turkey’s annual GDP by 5%, translating to approximately TRY 1.2 to 1.4 trillion (USD 50-60 billion). Sectors like trade, transport, manufacturing, and energy stand to gain the most from GAI, driving innovation and efficiency.