Artificial Intelligence plays an influential role in most of the technologies used in a digital economy that is expected to increasingly dominate modern life.
"The digital economy’s share in more than 40 countries has exceeded 40%. Part of this growth is due to coronavirus-induced conditions and the growing impact of information technology,” Deputy Minister of Information and Communications Technologies Sattar Hashemi said at the ceremony for unveiling projects related to drafting a roadmap for the development of artificial intelligence, IRNA reported.
"According to an estimation made in 2017, the digital economy’s share of the world economy in 2025 should reach 24%. But currently, the world’s digital economy is worth $30 trillion, which represents a 30% share in the global economy,” he added.
According to the deputy minister, the digital economy’s share of gross domestic product has grown at an incredible pace in recent years.
“By studying the data and AI’s influence on human lives, we come to the conclusion that this field needs close consideration and coherent planning,” he said, stressing that AI is one of the key factors in the formation of digital economy.
The official noted that apart from all the efforts made in this field, the government should be encouraged to use AI more than before.
Hashemi stressed that AI creates 97 million jobs and destroys 85 million jobs (as some processes will be handled by computers and there will be no need for manpower), which is a positive balance.
AI will eliminate many repetitive jobs and raise the need for specialized workforce. If this field is not utilized effectively, it will create unemployment and increase the need for skilled workforce.
"All the projects devised in the research institute facilitate the application of this technology. For instance, our research at the Information Technology Research Institute is mainly in the field of satellites so that we can help put Iranian satellites in orbit,” Vahid Yazdanian, another ICT deputy minister, said at the ceremony.
Packages Rolled Out for Tech Firms
Government officials have declared that the startup ecosystem is Iran's future business sector because it has the potential to reduce the country's reliance on natural resource sales and boost economic growth.
Over the last few years, government entities have rolled out more loan and aid packages to assist the sector's expansion.
According to ISNA, financial assistance was recently extended to startups and technology teams of North Khorasan Province.
As per the agreement signed late last week between the state-backed Iran National Innovation Fund and the provincial research and technology fund, 50 billion rials ($172,400) were allocated to help the region’s startups and tech firms grow.
According to Mehdi Khaleqi, an INIF official, the total worth of aid packages and loans paid to the tech community in North Khorasan did not exceed 7 billion rials ($24,130) in 2019, which have increased to 400 billion rials ($1.37 million) this year.
He emphasized that granting seed money to the nascent technology ecosystem is essential, if they are to boost the local economy and generate jobs.
"Private and state investors should take high investment risks because the country's knowledge-based community has proven to be financially viable enough to recoup initial outlay," he said.
Provincial Tech Status
Mohammad Vahidi, a board member of North Khorasan’s tech fund, said over 180 innovative teams and knowledge-based firms are currently based in the province, which have the potential to boost the local startup ecosystem and create sustainable sources of income.
The official emphasized the province’s startup growth plans, stating that in the near future, tech authorities will be able to provide more acceleration services and facilities to the growing number of startups.
Iran has prioritized support for startups and knowledge-based businesses since 2013 and the new government has promised to continue efforts to strengthen the technology ecosystem.
Similarly, over 2,000 startups in Kermanshah have received 780 billion rials ($2.6 million) of financial aid by INIF during the current fiscal year’s first seven months (March 21-Oct. 22).
According to the fund, 510 billion rials ($1.72 million) out of the total amount have been spent on forging contracts between tech firms and industrial units.
INIF has also established 198 small rural tech funds in the province since 2015 with a capital outlay of 103 billion rials ($349,000). The number of funds is planned to increase to 300.
In the western province of Lorestan, the Academic Center for Education, Culture and Research has paid 20 billion rials ($67,800) in loans to fledgling startups.
Amin Salahvarzian, the center’s caretaker, told reporters that over 60 startups and tech firms of the province are under ACECR’s direct patronage.
“Lorestan’s tech park and university-based tech centers are hosting over 27 knowledge-based companies and hundreds of fledgling startups, all of which can bolster their activities with the government’s continuous support,” he added.
