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Ilkin Seyidzade, Rudnak Ildiko: General Implementation Processes of Artificial
Intelligence and Its Economic Effects in Hungary

transition, there has been a decline in GDP of about 20% and more than 1 million
people have become unemployed. A large proportion of these people could not even
get a job any time soon, and only capital inflows from abroad and government
measures made it possible to reverse the economic downturn. The average GDP
growth was 3.1% till 2008, and the number of the employed workforce was 3.85
million at that time. Following the economic crisis, despite the integration of
automation processes, GDP growth has fallen to an average of 2%.

Between 2008 and 2010, the economy shifted from the public sector to a more
productive service sector. This was followed by an increase in the number of
employees, which contributed to GDP growth. In 2016, the number of employees was
already 4.4 million, however, automation and AI technologies play a major role in this.
AI provides an opportunity for employment to be achieved at a higher level if the issue
of productivity is addressed in the right way and at the right time (Fine et al., 2018).

According to the PWC (2019) report, it is worth considering, from an economic point of
view, the potential but also the threat of using AI. It is also worth examining whether the
rate of return on technological innovation, which requires huge investments, will
multiply. AI has long-term effects on the Hungarian economy, and it is estimated that
by the year 2030, a quarter of jobs will be dominated by AI. In terms of value-added to
the global economy, Hungary is a good place to conduct operations. AI technology
helps the country deliver quality activities and values at a low operating cost. This can
also provide the country with a competitive advantage and low-cost opportunities for
higher wages. But this requires training in AI technology, defining the educational
framework. It must be present not only in primary, secondary, and higher education but
also in adult education. However, defining it in a business environment is just as
important, in which the relationship between human effort and technology is supported
by their (human-AI) collaboration.

Of course, automation has an impact not only on the economy but also on society.
According to a 2017 annual survey, 38% of Hungarians have a negative view of the
presence of automation, and social skepticism is more pronounced. Although
Hungarians are one of the most negative nations on the topic of AI compared to the
EU average, they can be reassured that automation will not appear immediately
everywhere and the integration of AI into a business will only be moderate. On the
other hand, it should be considered positive that AI does not take a job, but changes
the structure of labor market or provides entirely new occupations and jobs, which
can increase the added value and the income it earns (Fine et al., 2018).

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