The First Deputy Governor of the Bank of Ghana (BoG), Dr. Maxwell Opoku-Afari has dismissed the assertion that Artificial Intelligence (AI) will render some workers redundant, arguing that AI has come to stay and therefore all and sundry must embrace its positive impact on the economy and allow it to shape the future.

According to him, AI is transforming the global economy, revolutionizing productivity, and driving growth.

“There are those who harbour the destructive fears of AI on labour dynamics. While many studies have predicted the likelihood that jobs will be replaced by AI, what we do know in fact is that in many of the cases that have examined, AI is likely to complement human work. This complementarity is expected to enhance productivity in the long run”.

While many studies have predicted the likelihood that jobs will be replaced by AI, Dr. Opoku-Afari said “what we do know in fact is that in many of the cases that have examined, AI is likely to complement human work. This complementarity is expected to enhance productivity in the long run”.

Evidence shows that the real impact of AI on the economy cuts across many sectors of the economy.

The First Deputy Governor said AI is transforming the finance, healthcare, agriculture, manufacturing, education, transportation, and energy sectors by enhancing efficiency, personalization, and decision-making, adding, “It is enabling breakthroughs like early diagnostics, precision farming, autonomous systems, and smart energy grids among interesting outcomes”.

He cited Ghana for example, saying, the introduction of AI-enabled digital banking services is being harnessed to simplify credit scoring, allowing Small and Medium Enterprises to access much-needed financing. This, in turn, he believes will boosts entrepreneurial activity, spurs job creation, and strengthens the economy.

AI-Driven Fintech Solutions Promoting Financial Inclusion

In the financial sector, he alluded that AI-driven fintech solutions are promoting financial inclusion. Platforms like Paystack and Flutterwave use machine learning to detect fraud and simplify transactions for small and medium enterprises (SMEs).

“These innovations are not only boosting productivity, but also driving economic growth by enabling businesses to thrive”, he added.

In the education sector, he mentioned that intelligent tutoring systems are addressing teacher shortages by providing personalized learning experiences.

Citing Uganda for example, he said, AI is facilitating access to legal education for rural communities, empowering citizens who previously lacked resources.

AI and Impact on Monetary Policy

At the Bank of Ghana, Dr. Opoku-Afari said AI has been employed to help with forecasting and generate near-term forecasts.

Through the development of algorithms and creation of crawlers, he stated that AI has been used in gathering prices of goods and services in firms that have an internet presence.

The data, he said, is scrapped off the website of these firms that have internet presence, ship the data back to the office for processing.

“Our AI generated inflation provides us with real time inflation numbers, and this is novel and our peers in sub-region have requested technical assistance in this area to also help support work in their jurisdictions”, he added.

Policy Related Issues to support AI Development

To harness the full potential of AI while mitigating its risks, the First Deputy Governor said it is important to focus on implementing policies that would lay a solid foundation for effective adoption of AI solutions.

These include investing in digital infrastructure which he said there is the need to prioritise investments in broadband connectivity and digital capabilities to create an environment conducive to AI innovation. Others ate enhancing human capital and fostering local innovation.

In conclusion, he reiterated that the intersection between AI, productivity, and growth in emerging countries presents a unique opportunity to accelerate economic development and improve the lives of millions of people.