A study has found that introducing artificial intelligence (AI) technology into consumer goods industries yields greater profits than applying it to capital goods industries.
On the 2nd, the 2025 BOK International Conference was held at the Bank of Korea Annex in Jung-gu, Seoul, where a commemorative photo session took place. Photo by Yonhap News
On June 3, at an international conference hosted by the Bank of Korea, Leonardo Gambacorta, Head of the Emerging Markets Department at the Bank for International Settlements (BIS), presented a paper containing these findings.
The paper analyzes that the higher the labor intensity of an industry, the smaller the increase in value added resulting from AI adoption. This is because, in the long term, productivity improvements from AI raise real wages and other production costs, which limits the growth in output more for labor-intensive industries than for capital-intensive ones.
The analysis also found that when AI is concentrated in consumer goods industries, labor shifts to capital goods industries, leading to a chain reaction that increases output and ultimately raises overall economic productivity.
In contrast, when AI technology is focused solely on capital goods industries, the responses in total output and inflation are not significant.
The author stated, "Policies that promote AI adoption can help stabilize prices in the short term and contribute to controlling inflation in the long term." He added, "AI also has growth potential that can help mitigate long-term demand contraction caused by population aging, reshoring, and supply chain restructuring." He further emphasized, "When formulating policy, it is necessary to prioritize the spread of AI in consumer goods industries."
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