BNR's Badea: Technology development and implementation of AI models no longer optional for emerging economies

The First Deputy Governor of the National Bank of Romania emphasizes the necessity of technology and AI for emerging economies to avoid the middle-income trap. He describes a shift towards a binary economy where value derives more from information and technology than from physical labor. Badea highlights that competitive advantages based on low labor costs are unsustainable, urging investment in research and education to foster long-term productivity. He discusses the dual impact of AI on the labor market, noting both displacement and the creation of new tasks. Badea concludes that we are entering a new era defined by intelligence and knowledge in a digital economy.