Episode 88: A Closer Look at GenAI in Portugal

Andrés Ortolá10/10/2024

Portugal is experiencing a digital shift, with a strong focus on transformation and innovation. One of the country’s strengths lies in its energy independence and commitment to renewable energy. This focus on sustainability and energy transformation positions Portugal well for future growth and development to support technologies like Artificial Intelligence (AI).

In this episode of #shifthappens, Dux Raymond Sy, AvePoint Chief Brand Officer, and Mario Carvajal, AvePoint Chief Marketing and Strategy Officer, is joined by Andrés Ortolá, General Manager of Microsoft Portugal, to discuss Portugal’s technology scene and the broader implications of AI adoption for businesses worldwide.

Andrés highlights the country’s upgraded rating to A by three major credit agencies and a forecasted average economic growth rate of 2% over the next five years. He adds, “The economy actually does have an optimistic outlook in the context of Europe. Last year, around November, Portugal broke a world record by staying six days in a row working only with sustainable energy.”

This optimistic outlook is driven by several factors: lower interest rates attracting international investors, a shift toward a digital economy, energy independence and renewable energy initiatives, and an influx of digital nomads.

Bring Your Own AI: A New Way of Doing Business

Andres shares some of the results of the 2024 Work Trend Index. AI adoption in Portugal is rapidly accelerating, with 65% of organizations already using some form of AI. The remaining organizations are expected to adopt AI within 12-24 months.

However, he adds that there is a gap between awareness and action. Although 77% of organizations recognize the importance of responsible AI implementation, only 36% have real governance bodies to oversee the successful adoption. This discrepancy highlights the need for more structured AI implementation approaches.

An interesting trend Andres observes is the concept of “Bring Your Own AI.” He notes, “Nowadays, there is a common expectation that you should bring your own AI knowledge training and understanding.” This trend spans generations, with nearly three-fourths of the baby boomers, Gen X, millennials, and Gen Z generations ready to bring their AI skills to the workplace.

Leadership Challenges and Opportunities

Successful AI implementation requires more than just technological know-how. It demands a shift in mindset from business leaders. Andrés explains, “When we see AI catching [on] really fast, it’s only when the leadership understands this is not just an IT thing. This is a new way of doing business.”

This shift puts pressure on business leaders to adapt and embrace AI technologies. Andres provides examples of how AI is being used to solve real business challenges:

• Employment and training: AI is helping attract and train new employees, including immigrants who may not be fluent in Portuguese.
• Energy trading: A large energy customer developed an AI-based global energy market trading system, enabling real-time trading with 16 European markets.

These underscore the importance of business-driven AI adoption rather than purely IT-driven initiatives.

Key Drivers of AI Adoption and Potential Industries to Transform

Andrés identifies several industries leading the charge in AI adoption:

• Public sector: Proactive in leveraging AI to optimize processes and improve citizen services
• Large corporations: Focus on enhancing customer relationships, employee productivity, and business process optimization at scale
• Startups and digital-native companies: At the forefront of AI innovation and integration

However, there are also sectors to watch for in terms of AI’s potential to transform, such as small and medium enterprises (SMEs), education, healthcare, and justice. He shares that these sectors still operate on centuries-old models ripe for disruption.

For example, in healthcare, Andrés envisions AI agents that can provide personalized care, “Imagine the doctors could have that sort of agent, or yourself having a health agent targeted to what you need, when you need it, and so on. The scalability there is huge.”

Similarly, AI can help teachers expand their efforts beyond the traditional classroom size to meet modern demands. Andrés explains, “How can we expect the teacher [today] to scale to beyond 20 or 30 children, know them, and give them a tailored education? It’s impossible.”

Lastly, SMEs represent the biggest challenge and opportunity for AI adoption. The challenge lies in changing the mindset of SME leaders, who may not yet focus on digital transformation.

The Future of Work and Skills

Looking ahead, Andres references the World Economic Forum’s forecast of skills needed for the future: creative thinking, analytical thinking, technology literacy, curiosity and lifelong learning, and resiliency, flexibility, and agility.

Interestingly, only one of the top five skills directly relates to technology. This emphasis on human skills alongside technological literacy underscores the complementary role of AI in the workplace. Andrés says, “If we keep on investing in this creative thinking and analytical thinking, discerning what’s right and what’s wrong, [we can] leave the repetitive tasks, the mundane tasks to these robots or agents or co-pilots.”

Reflecting on his career spanning various technological shifts, Andres emphasizes the importance of embracing change and innovation. He poses crucial questions, "How did I surf the first wave of the internet? How did I surf the first wave of mobile? He also drew parallels to previous industrial revolutions, “Imagine what happened in 1760 when the First Industrial Revolution started. Imagine people talking about how steam machines will take over jobs.” These questions and concerns always come up, but despite the challenges, changes often lead to new opportunities and change the way we work and live.

Embracing Change and Innovation

The AI transformation is happening faster than previous technological shifts, making it crucial for leaders to be at the forefront of this change. Andrés offers two key pieces of advice for organizations looking to maximize AI:

1. Leaders need to believe in and understand AI: Embrace the AI wave, invest in both technological and human skills, and imagine a better world through responsible innovation.
2. Approach AI as a tool to enhance capabilities, not replace people: The key is approaching these changes with optimism, creativity, and a commitment to using technology to enhance human capabilities rather than replace them.

From Portugal’s economic growth and renewable energy innovations to the global shift in how we approach AI in the workplace, those who can adapt, learn, and lead with vision will thrive in the AI-powered future.