The noise around artificial intelligence is deafening. Every day brings a new model that can write poetry, create uncanny images, or beat a human at another complex game. It’s all very impressive, but it often misses the point. The real revolution isn’t in the party tricks; it’s in the quiet, unglamorous work of making things run better. This is the world of productivity-focused AI, and it’s where the future of our economy is actually being written.
While Silicon Valley obsesses over chatbot personalities, smaller, nimbler economies like Jersey are asking a much more important question: how can this technology make us fundamentally more efficient? This isn’t about replacing humans with algorithms for the sake of it. It’s about a deliberate economic restructuring designed to supercharge growth where it matters most.
The Real Engine of Growth
So, what exactly is productivity-focused AI? Think of it less like a magical black box and more like a spectacularly advanced toolkit. It’s the application of AI not to create science fiction, but to solve stubborn, real-world business problems. It’s about streamlining workflows, automating repetitive tasks, and providing insights that allow people to do their jobs faster, smarter, and with greater impact.
This kind of efficiency technology acts as one of the most powerful growth multipliers a modern economy can have. Imagine a Formula 1 team. They could just drop a more powerful engine into their car and hope for the best. But the winning teams don’t do that. They also invest in a better chassis, superior aerodynamics, a world-class pit crew, and driver training. The engine is just one part of a complex system.
In this analogy, the AI model is the engine. But a productivity-focused AI strategy is the entire system: it includes training your staff (the driver), redesigning your business processes (the pit crew), and ensuring the technology integrates seamlessly into your existing operations (the chassis and aerodynamics). This is how you don’t just get a little bit faster; you lap the competition.
Why “Spray and Pray” Funding Doesn’t Work
Of course, none of this happens for free. But simply throwing money at the “AI” label is a recipe for disaster. What’s needed is targeted AI funding, a strategy that understands the difference between buying a shiny new tool and building a sustainable capability.
As economist James Linder pointed out recently at Digital Jersey’s annual review, investment is essential to “unlock future productivity growth.” But he rightly insisted that this funding must be channelled into two key areas: skills development and innovation. This insight, as reported by the BBC, is critical. You can give a team the best engine in the world, but if the driver doesn’t know how to handle it and the pit crew fumbles every tyre change, you’re still going to lose the race.
This is why government initiatives like Jersey’s AI Council are so important. They represent a coordinated effort to move beyond the hype and build the foundational pillars for genuine growth. It’s about creating an ecosystem where businesses aren’t just consumers of AI, but active participants in its development and application. It’s the difference between being a spectator and being in the driver’s seat.
The Job Question: A Necessary Conversation
Now for the elephant in the room. Does boosting productivity with AI mean mass unemployment? It’s the question on everyone’s mind, and anyone who tells you there’s a simple answer is selling you something.
As Deputy Kirsten Morel noted, “AI will bring challenges and benefits.” The key is to manage that balance with care. History shows that major technological shifts do eliminate some jobs. The weaving loom replaced manual weavers; the spreadsheet reduced the need for legions of bookkeepers. Yet, as Morel also pointed out, “history tends to show that more jobs are created than lost.”
The situation in Jersey provides a fascinating case study. With a tight labour market where there are literally “more jobs than there are people,” AI isn’t just a potential job displacer; it’s a potential solution to a chronic labour shortage. By automating routine tasks, productivity-focused AI can free up a limited human workforce to focus on higher-value, creative, and strategic work that machines can’t do. It’s about augmentation, not just automation. The goal isn’t to have fewer employees, but to make every employee more powerful.
Building the Racetrack Together
For this technological leap to succeed, no single company can go it alone. The most successful tech ecosystems are built on a bedrock of collaboration between government, industry, and education. It’s about building the racetrack before you try to host the Grand Prix.
Digital Jersey CEO Tony Moretta gets this, stating that AI is “absolutely fundamental to Jersey’s future prospects.” His organisation acts as a central hub, fostering that crucial dialogue and sharing of resources. When government and industry work in tandem, they create a supportive environment where innovation can flourish. The government can set the strategic direction and help de-risk investment in skills, while businesses on the front line can pilot new applications and provide real-world feedback.
This collaborative model prevents fragmentation. It ensures that the knowledge gained by one company isn’t siloed away but contributes to the collective intelligence of the entire economy. It’s a powerful strategy that multiplies the return on every pound invested in technology.
The Only Way Forward Is Through
The path forward is clear. The debate over whether to “adopt AI” is over. As Deputy Morel wisely said, “There is no getting round the fact that AI is part of our future and we must all learn to embrace it with care.” The real question now is how.
The answer lies in shifting our focus from the abstract marvel of AI to its practical application as a tool for productivity. It requires a visionary approach that pairs ambitious goals with pragmatic, targeted AI funding. It means investing as much in our people as we do in our algorithms. And it demands a spirit of collaboration to navigate the inevitable challenges and seize the immense opportunities.
For any business or economy, the question you should be asking isn’t “Should we use AI?”. It’s “What is our biggest productivity bottleneck, and how can a productivity-focused AI strategy help us demolish it?” What’s your answer?
