Portugal would be required to retrain 1.3 million workers, approximately 30% of its employed population, to effectively utilise generative artificial intelligence (AI) if it aims to bridge the productivity gap with the European Union's average by 2030.

This is according to the findings from a study published on Monday.

Historically, low productivity has been a significant challenge for Portugal, with productivity gains contributing an average of only 0.6% to annual GDP growth between 2010 and 2022, which is less than half of the EU average of 1.3%.

The study conducted by consulting firm McKinsey suggests that if Portugal swiftly adopts automation and generative AI technologies while preparing its workforce for these changes, the contribution of productivity gains could rise sharply to 3.1% by 2030, aligning with the projected EU average at that time, Reuters news agency reports.

Generative AI differs from traditional AI in that it learns from historical data to take actions and create new content, such as text, images, or computer code, based on that training, rather than merely categorising or identifying existing data.

“It is a unique opportunity for the country to compete directly with the developed economies of the world in terms of growth,” according to McKinsey senior partner Duarte Begonha.

As well as the 1.3 million workers requiring new technological and social skills, it will be essential to transition approximately 320,000 individuals currently employed in roles such as customer service and administrative support to new positions. This will require close collaboration among the public, private, and education sectors.

“The big investment will be in changing processes, procedures and ways of working,” Begonha said, adding that for each euro spent on generative AI technologies, an additional investment of 3 euros will be needed to manage the organisational changes that accompany their implementation.