Medellin, 12 December 2023: ERIA’s Lead Advisor for Southeast Asia Region, Dr Lili Yan Ing, participated in an academic session titled ‘Robots and AI: A New Economic Era’ at the 20th IEA World Congress held at Universidad EAFIT, Medellin, Colombia. The session delved into the profound economic implications of ongoing automation development and explored its effects on economies, future occupations, and global cooperation, focusing on the integration of industrial robots and AI. Robots and AI offer substantial economic benefits, propelling technological advancements, and boosting productivity.

Professor Gene Grossman of Princeton University chaired the session, which also featured other esteemed experts including Professor Gino Gancia from Queen Mary University of London and Professor Daniel Trefler from University of Toronto.

Dr Ing discussed automation in Indonesia and its impact on productivity, quality, and employment. Indonesia exhibits a high growth rate in automation among developing countries, posing significant social challenges due to its extensive labor force. Dr Ing highlighted that automation significantly enhances output and productivity compared to companies without automation. Moreover, digital technology aids producers in manufacturing higher-quality products.

Prof Gancia's research explores how robots influence employment and welfare in conjunction with offshoring. His findings suggest that robots contribute to repatriating economic activities domestically, while artificial intelligence and offshoring seem to reinforce each other. Prof Trefler discussed the implications of AI and cross-border data regulations on international trade in digital services, utilising a large language model approach to analyse their impact. He highlighted that countries imposing strict transfer data restrictions are associated with less effective AI usage.

Automation in Indonesia: Productivity, Quality, and Employment by Economic Research Institute for ASEAN and East Asia on Scribd