In a pivotal moment for Iceland’s technological advancement, Áslaug Arna Sigurbjörnsdóttir, the Minister of Universities, Industry, and Innovation, unveiled the nation’s inaugural action plan dedicated to artificial intelligence, spanning until the year 2026.
Photo/The Icelandic Government
The action plan outlines strategic initiatives aimed at positioning Iceland as a global frontrunner in the responsible deployment of artificial intelligence. These measures are envisioned to cultivate opportunities, prosperity, and progress for all citizens, emphasizing the nation’s small size as a unique advantage in this endeavour.
“Artificial intelligence is not a distant future but a current reality that offers substantial improvements to our efficiency and productivity,” Sigurbjörnsdóttir emphasized in an announcement from the Council of Ministers. She urged stakeholders to leverage this pivotal moment to adopt AI tools readily available to enhance their operations.
130 thousand jobs will be greatly affected
The integration of artificial intelligence into various sectors is poised to significantly transform approximately 75% of all employment within the country, placing Iceland’s competitive edge in the global marketplace at the mercy of its ability to effectively adopt and utilize this technology.
An in-depth analysis of AI’s economic impact reveals that around 55% of jobs in Iceland, equating to approximately 130,000 individuals, are likely to be notably influenced by advancements in artificial intelligence; this encompasses a broader estimate indicating that about 75% of jobs may experience some form of change.
Furthermore, studies show that civil servants currently spend, on average, 30% of their working hours engaged in tasks that could potentially be streamlined through AI automation.
ISK 174 to 1,450 billion
Iceland’s success in harnessing artificial intelligence hinges on two critical factors: the potency of the AI technologies developed and the velocity at which these innovations are adopted across various sectors in the country.
Forecasts suggest that Iceland’s gross domestic product could experience an upward trajectory of 0.8% to 6% annually until 2029, contingent upon the nation’s progress with these two key variables. This anticipated growth translates to a potential economic benefit ranging from ISK 174 billion to ISK 1,450 billion.
Increased number of jobs and increased quality of life
With the implementation of targeted incentives, governments can play a crucial role in shaping a future where artificial intelligence becomes instrumental in generating more jobs and elevating the overall quality of life within society.
Comprehensive international studies indicate that leveraging artificial intelligence to enhance the capabilities of the workforce yields greater economic benefits compared to a focus on automation alone.
If Iceland adopts a progressive approach to integrating AI within its societal framework, it is estimated that the economic advantages could amount to an additional ISK 500 billion by 2038 compared to strategies that emphasize workforce reduction through automation.
Five pillars of the plan
The action plan is structured around five fundamental pillars. The first three—artificial intelligence for the benefit of all, a competitive working life, and education in line with the times—are rooted in Iceland’s AI policy established in 2021. Two new pillars focus on the application of artificial intelligence in the public sector and its implementation in the health system.
Among the strategic objectives of the program are:
- Increased general knowledge and skills in the field of artificial intelligence, including a rise in the number of students pursuing degrees in artificial intelligence and data-centric disciplines at the university level.
- The digital infrastructure will meet the escalating needs for the effective use of artificial intelligence, incorporating ongoing advancements in telecommunications and access to computational capacity.
- Superior service delivery, heightened efficiency, and streamlined operations within the public sector through the integration of AI solutions designed to enhance governmental workflows.
- Significant improvements in healthcare due to the introduction of artificial intelligence, underpinned by financial aid dedicated to integrating AI technology within medical facilities.
- Facilitate a digital and green transformation bolstered by artificial intelligence through support initiatives backed by public focus funds.
**Interview with Áslaug Arna Sigurbjörnsdóttir, Minister of Universities, Industry, and Innovation**
**Editor:** Thank you for joining us today, Minister Sigurbjörnsdóttir. The unveiling of Iceland’s action plan for artificial intelligence must be an exciting moment. Can you share what inspired this initiative?
**Minister Sigurbjörnsdóttir:** Thank you for having me! Absolutely, this action plan is a significant step for Iceland. We recognize that artificial intelligence is not just a future possibility; it’s very much a current reality. The plan aims to ensure that we harness AI technologies in a way that promotes prosperity and enhances efficiency across various sectors. Being a small nation provides us with unique opportunities to innovate rapidly and adapt to changes.
**Editor:** You mentioned that approximately 130,000 jobs in Iceland could be notably influenced by AI advancements. How do you envision this transformation, especially in terms of job creation and quality of life?
**Minister Sigurbjörnsdóttir:** That’s a vital aspect of our strategy. While it’s true that many jobs will undergo changes due to automation, our focus is on leveraging AI to enhance job capabilities rather than merely replace them. Our plan includes targeting incentives that can foster new job creation and elevate the quality of life. Studies indicate that effectively integrating AI can lead to greater economic benefits than focusing solely on automation.
**Editor:** It sounds promising! With growth estimates for Iceland’s GDP indicating a potential increase of 0.8% to 6% annually until 2029, what are the key actions to ensure this growth is realized?
**Minister Sigurbjörnsdóttir:** The two critical factors are the effectiveness of the AI technologies we develop and the pace of their adoption across sectors. Our government is committed to facilitating rapid innovation and adoption through collaboration with stakeholders and continuous training for the workforce. It will be crucial for Iceland to adapt promptly to maintain our competitive edge.
**Editor:** As you stress the importance of responsible AI use, what message would you like to convey to businesses and civil servants regarding AI tools?
**Minister Sigurbjörnsdóttir:** I encourage all stakeholders to seize this pivotal moment to explore and adopt AI tools that can enhance their operations. AI is a resource that can significantly improve efficiency; it’s about working smarter, not harder. I believe that with a proactive approach, we can transform challenges into opportunities for every citizen.
**Editor:** Thank you, Minister Sigurbjörnsdóttir, for sharing these insights. It’s clear that Iceland is positioning itself as a leader in responsible AI deployment and innovation.
**Minister Sigurbjörnsdóttir:** Thank you! I look forward to seeing how our collective efforts will shape the future of Iceland in the realm of artificial intelligence.