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Why AI will be the Catalyst for a new era of productivity growth

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The dawn of the artificial intelligence (AI) era is often compared to transformative technological advancements such as the steam engine, electricity, and the personal computer. These innovations reshaped industries and daily life, and AI is poised to make an equally revolutionary impact, particularly on global productivity. While the effects of AI are still unfolding, experts believe that its ability to significantly boost productivity could happen in record time—just seven years, compared to decades for earlier technological revolutions.

This optimism comes at a critical juncture in the global economy. Post-pandemic, many countries are grappling with stagnating growth, rising inflation, and mounting debt, alongside the fundamental issue of declining productivity. In fact, several international agencies have noted that the productivity decline following the global economic downturn is unprecedented in recent history. Yet, AI is emerging as a way of hope, offering the potential not only to reverse this trend but to propel productivity to unprecedented heights.

the new era of productivity

The Economic Impact of AI: A Long-Awaited Leap

The global economy has struggled with low productivity growth for over a decade. For example, U.S. labour productivity growth averaged just 1.68% from 1998 to 2007, a period during which significant technological innovations like the internet and personal computers began to take root. But since 2010, productivity growth has fallen further, dipping to 0.38% between 2010 and 2019.

Some forecasts suggest that generative AI alone could add between $2.6 trillion and $4.4 trillion to the global economy

In this environment, AI is seen as the key to unlocking a new wave of economic efficiency. According to recent reports from the International Monetary Fund (IMF), AI technologies are expected to drive a substantial increase in global productivity. Some forecasts suggest that generative AI alone could add between $2.6 trillion and $4.4 trillion to the global economy.

To understand the potential of AI in the context of productivity growth, it’s useful to compare it to previous technological breakthroughs. The steam engine, for example, took about 60 years to fully transform productivity in manufacturing. Personal computers accelerated productivity growth over 15 years. By contrast, AI is expected to have a profound impact on productivity within just seven years.

Generative AI and Its Promising Future

Generative AI is a form of artificial intelligence that creates new content—whether it’s text, images, or even software code—based on patterns learned from large datasets. The speed with which generative AI is advancing is extraordinary. ChatGPT, released in November 2022, was quickly followed by a more advanced version, GPT-4, and other breakthroughs have appeared throughout 2023. This technology is expanding rapidly, with the capability to process tens of thousands of words in a minute, creating a powerful tool for automating complex tasks.

The applications of generative AI are vast and varied. In the business world, AI systems are already transforming industries like customer operations, marketing, software engineering, and research and development. The banking sector, for example, is projected to see an annual revenue increase of $200 billion to $340 billion through the adoption of AI. The retail and consumer goods sectors could see similar gains, potentially adding up to $600 billion annually.

AI’s potential to automate routine tasks could also free up significant amounts of time for human workers. Studies indicate that generative AI could automate between 60% and 70% of the tasks currently performed by employees, dramatically increasing efficiency. For knowledge-based workers, particularly in high-wage and high-skill sectors, AI is poised to amplify productivity by reducing time spent on routine tasks, such as data analysis, customer service, and administrative work.

Transforming Labour Markets: A Double-Edged Sword

However, the rapid rise of AI is not without its challenges, particularly when it comes to labor markets. Many fear that the widespread adoption of AI could lead to massive job displacement, especially in developed countries where white-collar jobs are more susceptible to automation. According to the IMF, while 30% of U.S. jobs may be at risk of automation by AI, only 13% of jobs in India are likely to be affected, reflecting the differing technological capabilities and labor market structures across the globe.

At the same time, AI’s integration into the economy is expected to create new job opportunities, especially in fields that require advanced technical skills, such as AI development, data science, and cybersecurity. This pattern mirrors historical trends: when previous technological revolutions disrupted the labor market, they also created entirely new industries and job categories. A recent study by MIT found that 60% of the jobs in America today did not exist in 1940, highlighting the constant evolution of the labor market in response to technological innovation.

AI’s Role in Healthcare: Beyond Productivity

AI’s potential extends far beyond traditional sectors like manufacturing or finance. The healthcare industry stands to benefit greatly from AI’s ability to analyze vast amounts of medical data quickly and accurately. For example, AI systems can assist doctors by analyzing scan reports, identifying patterns, and recommending treatment protocols. AI can also reduce the burden of administrative tasks, such as summarizing doctors’ notes and processing insurance claims, thereby improving productivity in healthcare settings while also reducing costs.

Generative AI is now widely recognized as a general-purpose technology (GPT), similar to electricity or the personal computer

Such advancements could lead to significant improvements in healthcare delivery, making it more efficient and cost-effective. This would not only improve outcomes for patients but also contribute to economic growth by lowering healthcare costs for both consumers and governments.

The Path Forward

Generative AI is now widely recognized as a general-purpose technology (GPT), similar to electricity or the personal computer. These technologies have historically contributed to broad-based productivity growth across multiple sectors. The key to AI’s success as a GPT lies in its ability to integrate seamlessly with existing technologies and applications across various industries, driving continuous innovation and productivity gains.

The widespread adoption of AI in industries like logistics, manufacturing, education, and even creative arts has the potential to revolutionize how businesses operate and how workers contribute. As businesses continue to integrate AI into their processes, the resulting efficiencies will likely lead to increased competition, lower prices, and higher wages for workers in industries that embrace these changes.

AI’s transformative potential for global productivity cannot be overstated. Just as the steam engine and personal computers reshaped industries and economies, AI is positioned to trigger an unprecedented leap in productivity across nearly every sector. While challenges related to job displacement and economic inequality remain, the promise of a future in which AI drives substantial economic growth is undeniably exciting.

As AI continues to evolve, it is crucial for businesses, policymakers, and workers to embrace this change, adapting to new technologies and fostering an environment that allows AI to reach its full potential. The future of productivity is unfolding before us, and AI will be at the centre of this revolution.

EP Staff is the editorial team at EdPublica, an independent media organisation focused on science, education, environment and public policy. The team produces evidence-based news, features, explainers and analysis on issues that shape society and everyday life.

Society

Nearly 72% of Migrant Workers in South India Report Improved Living Standards, but Labour Protection Remains Weak

India’s migrant construction workers play a crucial role in the country’s urban development, yet many continue to face poor working conditions, inadequate social security, wage insecurity and limited access to essential services.

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Construction workers wearing safety helmets and carrying electrical cables at an unfinished building construction site in India.
Construction workers at an ongoing building project. Migrant labourers form a significant part of India's construction workforce.Image credit:Pexels

Nearly 72 per cent of interstate migrant workers surveyed across Kerala, Karnataka and Tamil Nadu reported improved living standards after moving to the southern states. However, access to welfare benefits, healthcare and formal employment protections remains a major challenge, according to a new regional survey.

The findings are part of the South India Interstate Migration Survey (SIIMS) 2026, published by the International Institute of Migration and Development (IIMAD) in collaboration with the United Nations Population Fund (UNFPA) and the International Organization for Migration (IOM).

Based on a mixed-methods study of 1,824 migrant workers across 33 districts, the survey examines migration patterns, employment conditions, housing, healthcare, financial security and access to social protection. Data were collected between December 15, 2025, and March 31, 2026. The research covered agriculture, fisheries and daily-wage labour across the three states, alongside hospitality in Kerala, scrap collection in Karnataka and textile and garment work in Tamil Nadu.

The survey found that 71.8 per cent of respondents reported improved living standards after migration, while 56.9 per cent intended to continue working in their destination states. However, the findings also reveal a gap between improved livelihood opportunities and access to basic labour protections.

Employment insecurity and gaps in social protection

The absence of formal employment arrangements emerged as one of the major concerns. Around 86.4 per cent of surveyed workers did not have written employment contracts, while 57.6 per cent received their wages in cash. Only 12.8 per cent reported awareness of their labour rights or available support programmes.

The lack of written contracts can make it difficult for workers to establish employment terms, seek compensation for unpaid wages or pursue grievances. The survey also found that 15.6 per cent of respondents had experienced a workplace accident during the preceding year, while only one per cent had accident insurance.

Access to welfare benefits was similarly limited. Only 19.4 per cent of respondents reported easy access to welfare benefits after migration, while 45.3 per cent faced considerable difficulties. Another 35.3 per cent reported partial access. Healthcare access presented another concern, with 69.2 per cent reporting difficulties obtaining healthcare services.

These findings are supported by a separate study published in Frontiers in Human Dynamics on July 14, 2026. Researchers examined employment precarity and psychosocial well-being among 428 interstate migrant workers in Kerala.

The study, titled Employment Precarity and Psychosocial Well-being among Interstate Migrant Workers in India: The Mediating Role of Social Protection, found a significant association between insecure employment and lower psychosocial well-being. Social protection had a statistically significant indirect effect in this relationship, suggesting that institutional support could partly mitigate the disadvantages associated with precarious employment.

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Women migrant workers working in a grass field. Image credit:Pexels

The researchers noted that the relationship between employment insecurity and well-being remained significant even after examining factors such as social exclusion and individual coping mechanisms. However, because the study used a cross-sectional design, the findings establish associations rather than causation.

The financial inclusion findings also reveal a gap between access to banking and broader economic security. Although 88.2 per cent of surveyed workers had access to formal financial services, this did not necessarily translate into access to welfare benefits, insurance or secure employment.

Gender differences further shaped workers’ economic experiences. Women migrant workers earned approximately Rs 3,313 less per month than men, even after researchers accounted for other measured factors. The findings indicate that employment vulnerabilities are not distributed equally across the migrant workforce.

Migration governance requires coordination between states

The survey identified circular migration as an important feature of interstate labour mobility, with 82 per cent of respondents classified as circular migrants. Many workers move repeatedly between their home states and employment destinations, often relying on informal networks of friends and relatives to find work.

This movement creates challenges for welfare systems that remain organised around state-specific administrative structures. Workers may find it difficult to access benefits when their employment, residence and documentation are spread across different locations.

The report recommends stronger coordination between origin and destination states, improved portability of welfare benefits, multilingual assistance and more accessible healthcare services. It also calls for better labour inspections and stronger workplace protections, particularly in sectors where informal employment is widespread.

The findings raise questions about whether existing social protection mechanisms are adequately responding to the mobility of India’s workforce. While migration provides employment opportunities and improves living standards for many workers, the absence of reliable employment safeguards and accessible welfare services leaves significant gaps in their protection.

As southern states continue to depend on interstate labour across construction, agriculture, hospitality, manufacturing and other sectors, ensuring that workers can access their rights and benefits wherever they move will remain an important challenge for migration policy.

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Society

Sikkim Records 79% Growth in Milk Production Over a Decade, Dairy Cooperatives Expand

Sikkim has recorded a 79% increase in milk production over the past decade. New initiatives include a Siri cattle Centre of Excellence, dairy infrastructure upgrades and Churpi traceability.

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Dairy cows feeding at a cattle farm, illustrating livestock production and dairy development in Sikkim.
Dairy cattle at a livestock farm. Sikkim has recorded a 79% increase in milk production over the past decade, alongside an 88% expansion in dairy cooperative societies. Representational image. Image credit: Los Muertos Crew/ Pexels

Sikkim’s daily milk production has increased by 79% over the past decade, rising from 1.37 lakh litres to 2.45 lakh litres, according to the Ministry of Fisheries, Animal Husbandry and Dairying. The state has also recorded an 88% increase in dairy cooperative societies during the same period, reflecting the expansion of its organised dairy network.

Union Minister for Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh highlighted the figures at a programme organised by the Sikkim Milk Union in Gangtok on November 3, 2026. The growth comes against the backdrop of India’s expanding dairy industry. India produced 247.87 million tonnes of milk in 2024–25, retaining its position as the world’s largest milk producer. Its output increased by 3.58% from 239.30 million tonnes in 2023–24, accounting for approximately a quarter of global milk production.

Uttar Pradesh is the country’s largest milk-producing state, contributing 15.66% of national output in 2024–25. Rajasthan followed with 14.82%, while Madhya Pradesh, Gujarat and Maharashtra accounted for 9.12%, 7.78% and 6.71%, respectively. These five states together contributed approximately 54% of India’s milk production.

Union Minister Rajiv Ranjan Singh and Sikkim officials jointly hold a certificate at a Sikkim Milk Union event in Gangtok.
Union Minister Rajiv Ranjan Singh attends the Sikkim Milk Union programme in Gangtok, where initiatives to strengthen the state’s dairy cooperative network and infrastructure were announced.

India’s dairy industry primarily serves its large domestic market, with milk and milk products consumed across rural and urban households. Uttar Pradesh, besides being the largest producer, is also a major consumption market. Government data for 2023–24 put its monthly per capita milk consumption at 5.69 litres in rural areas and 8 litres in urban areas.

However, production volumes do not automatically translate into organised market supply. Uttar Pradesh’s Dairy Development Department estimates that only around 10% of the state’s marketable milk surplus is processed through the organised sector, compared with a national average of approximately 17%. This points to gaps in processing and marketing infrastructure despite the state’s substantial production.

Expansion of Sikkim’s Dairy Network

In Sikkim, the number of dairy cooperative societies increased from 389 in 2014–15 to 733 in 2025–26. Daily milk supply to consumers also doubled, from 28,000 litres to 56,000 litres.

The programme included several initiatives aimed at improving dairy infrastructure, milk quality and the commercial value of traditional dairy products. The minister inaugurated a microbiology laboratory of the Sikkim Milk Union under the National Programme for Dairy Development (NPDD). The facility is intended to strengthen microbiological testing and quality assessment, supporting food safety in the dairy sector.

A Churpi traceability initiative was also launched to strengthen the identity and marketability of the traditional dairy product. In addition, Fodder Plus products developed by Farmer Producer Organisations (FPOs) were introduced to improve fodder availability and create additional income opportunities in the livestock sector. Five newly established dairy cooperative societies received registration certificates during the programme.

Siri Cattle Conservation and Dairy Infrastructure

The minister also announced plans to establish a Centre of Excellence for the conservation and development of indigenous Siri cattle. The proposal follows his visit to Mangan, where local cattle were reported to produce an average of approximately three litres of milk per day.

The proposed centre will focus on improving the breed’s genetic potential and milk productivity through advanced breeding technologies, including in-vitro fertilisation (IVF). The minister said the Central Government would sanction funds for the initiative and invited the Sikkim Government to submit a formal proposal. The National Dairy Development Board (NDDB) will also finance and undertake the comprehensive modernisation of the existing dairy processing plant in Mangan district, drawing on the model implemented in Mizoram.

Highlighting the potential of organised dairy development, Singh cited NDDB’s intervention in Varanasi, where milk collection reportedly increased from 14,000 litres per day in 2022 to approximately 2.5 lakh litres. The price received by farmers rose from ₹28–30 to ₹42 per litre. The initiative also created additional income opportunities through the utilisation of cow dung in biogas plants under the GOBARdhan programme. The minister called on NDDB to strengthen its support and deploy additional human resources in Sikkim to help the state achieve self-reliance in milk production and procurement.

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Greece Passes Social Media Ban for Children Under 15

Greece’s new law will bar children under 15 from social media from January 2027, adding to international efforts to regulate young people’s access to online platforms.

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Teenager using a smartphone as Greece moves to ban social media access for children under 15.
Greece Social Media Ban for Children Under 15. Representational image. Image credit: https://kaboompics.com/ Pexels

Greece’s Parliament has approved legislation prohibiting children under 15 from using social media, with the restriction scheduled to take effect on January 1, 2027. The law requires platforms to verify users’ ages and provides for penalties if companies fail to comply.

The decision adds Greece to a growing international effort to regulate children’s access to social networking platforms, as governments respond to concerns about online safety, excessive screen use and children’s mental health.

Prime Minister Kyriakos Mitsotakis had announced the plan in April. His conservative New Democracy party used its parliamentary majority to pass the bill after a debate that continued from Thursday into Friday. The opposition PASOK party abstained, while other opposition parties voted against it.

How will the Age Restriction Work?

Social media companies will have to introduce age-verification systems to enforce the minimum age. Greece has identified digital tools such as Gov.gr Wallet and Kids Wallet as possible ways to support age checks. The precise implementation and how platforms will meet the requirements remain important questions ahead of the January deadline.

The government has linked the measure to concerns that social media use can interfere with children’s sleep, concentration and personal relationships. However, enforcing the age limit will depend on how platforms identify underage users and prevent them from creating or retaining accounts.

Age verification also raises questions about privacy. Systems that require identity documents or other personal information could expose users to additional data risks. The European Commission has been developing an age-verification system designed to confirm whether someone meets an age threshold without sharing their identity with the platform.

Greece Joins a Wider International Push

Australia became the first country to enforce a nationwide ban on social media for children under 16 in December 2025. Its law requires covered platforms to prevent underage access, with substantial financial penalties for non-compliance.

In Europe, the European Commission proposed the EU KIDS Act in September 2026. The proposal would prevent children under 13 from accessing social media accounts, allow limited, parent-supervised accounts for those aged 13 and 14, and set 15 as the minimum age for independently managed accounts. The proposal still needs approval through the EU legislative process.

These approaches differ in their age thresholds and enforcement mechanisms, reflecting an ongoing debate about how governments should balance children’s protection with access to digital communication and information.

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