Technology has advanced significantly in recent years, and its presence and importance in our daily lives are inescapable. For example, in the 1980s, the first desktop computers were developed to collect data. In the 1990s, with the advent of the Internet, digital technologies completely revolutionized how companies functioned: they saved time and money by taking over many of the routine tasks performed by people.
But today, almost 30 years later, the relevance of technologies is not only limited to facilitating specific jobs but goes beyond that, with consequences in all areas of our lives, from education to playing at a popular among Poles “casino online blik”.
How economic environment is evolving
In the current technological era, experts have focused on three ways in which new technologies can affect the economic environment:
- Productivity – in this case, technology has what we can call a complementary effect. There are jobs where automation helps the employees, and machines increase workerforce productivity. The various analyses predict that artificial intelligence (AI) will significantly increase labor productivity in the medium term. Current global economic growth rates are expected to double in the next five years, partly because of solid increases in labor productivity (up to 40%) due to the use of AI.
- New products lead to new jobs – AI also has a significant positive impact on the existing services’ quality and the emergence of new products. Of course, this also positively affects employment and decreases the general level of famous technological unemployment. The production of these unique goods and services will be linked to new job creation in the booming technological sectors, the number of which, given the relevance of AI, will increase. (https://tabsnation.com/) But these new services may also be linked to new business models that may arise thanks to advanced technologies.
- Fair competition – Last but not least – digital technology leads to the emergence of super companies by favoring network economies, which could potentially reduce competition. So to regulate this kind of competition in a business environment, it is vital to find a balance between consumer welfare and the promotion of innovation, ensure a level playing field, and encourage more outstanding international coordination in the tax sphere.
What are the potential risks?
The importance of technology and its impact on new jobs directly affect the economy, causing a disruptive change: digitalization has taken over companies, forcing them to adapt to digital environments.
But not only are companies changing, but the economy is also making a 180-degree turn, which is very different from the global situation 10 or 20 years ago.
Companies based on new technologies and digital environments, such as Facebook, Amazon, or Apple (to mention a few), have a lot in common. They lead the world and the global economy. The direct consequence is that if the Internet suffers downtime for a couple of days, these companies will lose millions of dollars because their functionality depends on the Web. This, in turn, could reduce the global economy and severely impact the Gross Domestic Product.
Obviously, the Internet crash can have a devastating impact on all fields, but other reasons could cause the economic collapse too. For example, a hack in a bank will urge all customers to withdraw money from their accounts, leaving them without liquidity. This could be catastrophic, probably leading to an economic recession.