3 ways technology can transform economies and rebuild trust

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Roland Busch, President and CEO, Siemens AG

• Technology can help reshape economies to be more competitive, resilient and sustainable.
• It also plays a key role in rebuilding trust in society.
• Trust is more widespread in economies that are healthy, growing and creating jobs.

We don’t usually think of technology as a tool to build trust. When technology and trust appear in the same sentence, the focus is more likely to be whether we can trust technology. This is especially true of Artificial Intelligence (AI). Questions arise like: Can we rely on AI to give us unbiased information? Is it safe to let AI control machinery or drive our cars? And the big one – will it take our jobs away?

There’s no denying that technology makes a difference. Often, it is transformative. And it’s natural for people to fear change. To worry about job security. To worry about the future, about climate change and social inequality. These aren’t abstract issues. They are genuine fears for many of us, but here’s the twist: technology may also be our best bet in addressing them.

Technology is a force for progress that can help restore trust in three ways: by building stronger economies, by creating better-paid and more fulfilling jobs, and by scaling sustainability impact.

Building stronger economies

A strong economy is the cornerstone of a prosperous, stable society because it creates jobs and raises living standards. In last year’s Edelman Trust Barometer, fast-expanding economies like India, Indonesia and Singapore were at the top of the trust barometer, while slow-growing economies such as Argentina, South Africa and Spain languished at the bottom.

Inequality has increased as economies have been impacted by inflation, high energy costs, supply chain challenges, labour shortages and climate change. Globalization has seen production outsourced to low-cost countries and trust in our societies has suffered.

But we can set the balance right with the right technologies, infrastructure and support. Enabled by digitalization and automation, companies can locate production closer to local markets, even in high-cost countries, boosting competitiveness, resilience and sustainability. We call this trend glocalization. One example is Intel building two semiconductor plants in Germany. Another is Siemens’ investment in new manufacturing capacities across Asia, Europe, and the US.

Investing in smart, sustainable infrastructure is a game changer. Egypt is an example of how embracing technological change can prepare a country for a better future. The government there is investing in the world’s most modern — and sixth-largest — high-speed rail system. More than that, it is using technology to transform one of the key economies of the Middle East, not least by upgrading its electricity distribution system to increase efficiency and stability.

Creating better jobs

People have good reason to fear technology. It can perform many of the jobs humans do — at a higher speed and with fewer errors. Technologies like AI will take over the repetitive, tedious, labour-intensive tasks. Some jobs will disappear and many will change. But this creates opportunities for more stimulating, satisfying and better-paid work.

Of course, there’s a catch. This will only happen when governments and businesses invest in training, reskilling and upskilling, particularly in the areas of digitalization and sustainability. It’s in everyone’s interest to ensure no one is left behind. For governments to ensure lifelong employability for their citizens and economic competitiveness. For industry to ensure they have the skills they need for their businesses to thrive.

Siemens offers continuous learning opportunities to help its people adapt to technological changes in our market. Last year, it invested €416 million in training and skills development. It also supports customers like Mercedes, who want to leverage technology to upskill their employees, not replace them.

Mercedes’s Berlin factory, which first opened in 1902, is now a digital hub for new technologies and a place for learning. There, employees can use technologies such as augmented reality and simulation to acquire new skills. This is an approach that Siemens also uses.

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Scaling sustainability impact

Without action on sustainability, the future of our societies and our planet is at risk. Fortunately, the technologies to decarbonize our economies are available. For example, AI can make grids smarter to handle more renewable energy. It can help make energy-intensive industries greener. In Estonia, Greenergy data centres use AI to optimize cooling and, thereby, energy consumption. And India, by electrifying rail networks, is creating a modern infrastructure that drives progress and improves quality of life. To curb global warming, we need to rapidly scale the deployment of these technologies.

We also need to use our natural resources more sparingly to safeguard our future. Currently, we’re only recycling 9% of our planet’s resources. That figure will rise as technologies like digital twins and 3D printing revolutionize how we manufacture products and make them far more recyclable by design.

One Siemens customer in Scandinavia, for example, has the ambition to produce the world’s greenest batteries. Their goal is to source half of their raw materials from recycled batteries by 2030. Using digital technologies is not just a win for the environment; it’s also a strategic move for their supply chain. This kind of innovation that drives our industry forward in a sustainable way.

DISCOVER

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As we navigate these uncertain times, technology can play a role in reshaping our economies. Not just to be more competitive, but also to be more equitable, resilient and sustainable. It can help to restore and enhance trust in our societies.

Technology isn’t something to be wary of. Instead, it’s a tool we can leverage to build better businesses, stronger economies and healthier communities — to make a real difference in the world.