Analysts suggest China’s rapid AI adoption may limit the economic fallout from its rapidly ageing population. As fertility rates fall across Asia, sustaining growth with fewer workers poses a daunting challenge. The region’s deep semiconductor, tech hardware, and machinery ecosystems enable faster and cheaper deployment than other regions.
As fertility rates fall, Asian economies face a daunting challenge in sustaining growth with fewer workers. A report highlighted by the South China Morning Post notes that China and South Korea are at the forefront of developing and adopting cutting-edge technologies. The report’s authors said, “The region’s deep semiconductor, tech hardware and machinery ecosystems make deployment faster and cheaper than other regions.”
According to 2024 data from the International Federation of Robotics, South Korea has the world’s highest robot density, with about 1,012 industrial robots per 10,000 manufacturing workers. China has 470 and Japan 419, well above the global average of 162.
Louis Kuijs, Asia-Pacific chief economist at S&P Global Ratings, said the governments of China, South Korea and Singapore have been most proactive in adopting and applying AI and robotics across the economy. These efforts could help mitigate the economic fallout from ageing populations, though Asia overall grapples with labour shortages. The report emphasizes the region’s tech advantages for AI deployment but does not quantify specific economic impacts.
