Design and productivity must drive AI impact on regional economies

At the 2026 BOK Regional Economy Symposium in Daejeon on the 2nd, approximately 100 experts discussed how maximizing productivity through design, rather than just technology adoption, is essential to transforming AI into a regional growth engine.

The rapid spread of artificial intelligence (AI) technology is reshaping the landscape of regional economies. Discussions were held to analyze how AI goes beyond mere technical progress to impact the structure of regional labor markets and industrial productivity, and to devise policy responses to transform this into a new growth engine.

At the '2026 BOK Regional Economy Symposium' held by the Bank of Korea on the 2nd, approximately 100 experts from business, academia, and government gathered to discuss the theme "AI Diffusion and the New Landscape of Regional Economies." Held in the science city of Daejeon, the symposium was organized to explore the challenges and new possibilities facing regional economies in the AI era.

Focus on declining youth employment and AI-driven labor market changes

Changes in the labor market brought about by the spread of AI technology emerged as a major topic at the symposium. AI was defined as a "disruptive technology," with analyses suggesting that new changes in regional economies are beginning as the technology spreads. In particular, the impact of AI is manifesting substantially in regional jobs and labor markets, leading to concerns and analyses regarding how the current downward trend in new hiring for the youth population will affect the regional economy when they enter their 30s.

Experts agreed that for AI to become a new growth engine for regional economies, the core issue is not simply how quickly technology is adopted, but how the regional economy is designed and improved to maximize productivity through AI. While noting that AI can serve as a medium to overcome the limitations of physical location, participants pointed out the need for concrete preparations to link this to regional economic growth.

Connectivity with local industry is more vital than technical infrastructure

In-depth discussions were also held regarding the conditions necessary for AI adoption to lead to actual productivity improvements for local companies. Presenters emphasized that the impact of AI by industry must be distinguished between a "productivity shock" and a "demand shock." They explained that it is crucial to identify which companies are actually experiencing substantive productivity growth by utilizing AI during the data center construction stage.

Questions were raised at the scene regarding the practical barriers local companies face when utilizing AI. Specifically, given that many current users primarily utilize generative AI services from companies in the United States or China rather than domestic firms, discussions continued on the challenges local companies must overcome to achieve substantive results through AI.

In conclusion, the primary takeaway from the symposium was that the impact of AI on regional economies depends less on the technology itself or the level of infrastructure, and more on how effectively AI is connected and utilized with local companies, industries, and consumers. The Bank of Korea stated that it expects the various insights discussed at this symposium to serve as a foundation for creating new possibilities for regional economies.

Source: original video (YouTube)