AI could free up almost 100,000 man-years

Ireland can potentially free up nearly 100,000 work years over the next 30-40 years as artificial intelligence (AI) increasingly influences work processes, according to a new analysis by Norwegian IT and consulting firm Netcompany. Across the world, job cuts and reduced costs are expected as AI adoption expands. Dutch government recently announced plans to cut 25,000 jobs as part of an AI-led efficiency initiative. Norway could also benefit from saving 96,000 work years by 2035, the analysis suggests.

The key to unlocking this potential is targeted investments in advanced AI systems, representing roughly 11% of the civil service workforce. Thomas Damsgaard Tørsløv, chief economist at Netcompany, explains that this does not mean 96,000 positions will be eliminated, but rather freed up time. This time could be better utilized in patient care or enabling more tasks to be completed with the same workforce or fewer employees.

The government aims for all public enterprises to adopt AI by 2030, with adoption rates rising from 43% in 2024 to nearly 70% two years later. Digitalization Minister Torgeir Micaelsen expresses hope that the figure could be higher. The aim is to create sharper, more results-driven metrics, such as quality and productivity indicators, rather than merely counting job cuts or costs.

An estimated 83 billion Norwegian krone could be saved in 2025 by efficiently deploying AI across all relevant tasks. However, this requires significant investment, with nearly a third of potential gains necessitating cutting-edge AI systems. The analysis suggests that between 10,000 and 15,000 work years could be freed, potentially saving the state between 8.2 and 12.5 billion Norwegian krone annually once licensing costs are factored in.