AI & Productivity in Asia: Workday Insights
- Despite rapid economic expansion, Asian economies are struggling wiht stagnant productivity growth.
- Even where productivity is improving, it's not happening quickly enough to catch up with leading firms in developed markets like the United States.
- Simon Tate, Asia-Pacific president for Workday, said productivity, measured as gross domestic product divided by GDP per capita, is stagnating or declining in nearly every Asian market.He added...
Explore how Asian economies can reignite productivity growth. Stagnant gains threaten the region’s economic expansion, prompting a search for solutions. Executives are turning to agentic AI and the tech-savvy skills of younger workers to bridge the gap. Discover how “reverse mentoring” could be key,allowing digital natives to train older colleagues. Learn about the potential of artificial intelligence to revolutionize workflows and the challenges businesses face when adopting these models, especially for those with limited AI experience. This article, featured on News Directory 3, uncovers innovative strategies to bolster productivity amid aging populations and the rise of remote work. Discover what’s next in Asia’s productivity evolution.
asia’s Productivity Growth Stalls: Can AI and Youth Bridge the Gap?
Despite rapid economic expansion, Asian economies are struggling wiht stagnant productivity growth. Much of the region’s recent growth stems from increased investment rather than gains in total factor productivity, which measures how efficiently inputs are converted into outputs. productivity growth is either slowing or declining.
Even where productivity is improving, it’s not happening quickly enough to catch up with leading firms in developed markets like the United States. Throughout the 2010s, Southeast Asian firms experienced productivity growth below the global average. China, however, managed to keep pace.
Simon Tate, Asia-Pacific president for Workday, said productivity, measured as gross domestic product divided by GDP per capita, is stagnating or declining in nearly every Asian market.He added that executives are concerned about productivity due to factors like aging populations, poor public policy and the rise of remote work.
Asian firms once relied on cheap labor to solve productivity issues, expanding without impacting margins.However, as Asian economies mature and populations age, hiring more people is no longer a viable solution.
Tate said that the region can no longer simply throw people at the problem to increase productivity.
Youth and AI to the Rescue?
Executives like Tate suggest that artificial intelligence, especially agentic AI, could boost productivity. These AI systems can autonomously perform user-defined tasks, freeing up employees for other work.
A February survey by Accenture indicated that 90% of Asian businesses plan to adopt some form of agentic AI within three years.
However, implementing these models poses a challenge, especially for older executives with limited AI experience.
Tate noted that asian workplaces will soon include five generations, from baby boomers to Generation Alpha.
Tate said Generation Alpha possesses a higher degree of digital fluency than the previous four generations combined, adding that human resources departments are unprepared for the influx of AI-savvy young workers.
A Workday report found that about 80% of Gen Z workers in Asia-Pacific want modern technology in their workplaces, with over two-thirds viewing a lack of cutting-edge technology negatively.
Tate suggests that Asian companies should treat younger generations as a source of expertise, not just give them space to thrive.
He noted that boards of directors and advisory boards in the top 100 public companies across the Asia-Pacific region are primarily composed of baby boomers and gen Xers,with few positions held by those in their 20s and 30s.
Tate proposes “reverse mentoring,” where younger employees train older colleagues on new technologies. He suggests that established companies consider appointing younger members to provide expertise on technology and business, similar to how millennial or Gen Z founders might ask older individuals to serve as board directors.
Tate said that companies falsely assume younger people are too young to have good ideas, adding that if you put bright, enterprising people in a room and give them a problem, they will add value in helping to solve it.
What’s next
Asian companies may need to embrace new strategies to boost productivity, including adopting AI and leveraging the skills of younger generations through initiatives like reverse mentoring.