international finance division within the directorate general for economics, statistics and research of the bank of italy. mr pagano has cooperated and co - authored several articles with distinguished institutions, such as : bocconi university and university of california, berkeley. as i emphasised earlier, mr pagano will discuss on the role of productivity on economic growth, in particular, the recent debate triggered by the hypothesis that advanced economies are doomed to experience a long period, why not decades, of slowdown of economic growth and deceleration of welfare improvement. 1 / 3 bis central bankers'speeches i would rather not anticipate the findings in the presentation, but i must say that i feel encouraged by the finding that this hypothesis is likely not to be true. productivity and its role on economic growth has always been a central theme at the focus of the attention at the bank of albania. our studies suggest that, beyond the cyclical fall in the aggregate demand, the economic slowdown in albania, after the crisis, has had a strong structural element. in other words, the reduction by half of the economic growth pace before and after the crisis, shows both the slowdown in the expansion of demand for goods and services, and the slowdown in the capacity of the economy to provide these products. in particular, our studies have found that the degree of expansion of productivity in the albanian economy – broadly defined as the capacity of an economy to utilise labour and physical capital to generate output – is reduced in this period from 2 % to 1 %. for this reason, the growth of productivity has been and should remain a guideline in the agenda of structural reforms in albania. in this context, the conclusion in today ’ s presentation that the currently slow growth in productivity, globally, does not necessary represent a new “ normal ” of the economy, is a further encouragement for the success of reforms in albania. let me now explain this argument in greater detail. first, the albanian economy has been going through a restructuring process of its growth model. among others, this process envisages a higher reliance of growth on export oriented sectors – such as industry and tourism – and a further orientation of financial resources towards the expansion of investments. the shift in financial, human and management resources between sectors of the economy needs time and is followed by a temporary slowdown of productivity. nevertheless, rebalancing the sources of growth – from construction and trade towards industry and export - related services – has already started. this shift is

. in particular, this text will increase consumer confidence, while providing legal certainty for economic operators. this governance principle can be supplemented by three operational principles. first, using ai proportionately and progressively. with a simple rule : the more critical the use case for our activty, the more we have to do it ourselves. for institutions like ours, this goes to the fundamental issue of data : some of the data held by central banks and financial supervisors are too confidential to be stored on a thirdparty cloud infrastructure. second, experimenting without delay, even with simple use cases, to find the right way of integrating ai into our activity, leading to an " augmented agent " rather than a " substituted agent ". indeed, we can expect ai to significantly reshape the patterns of human - machine interactions. finding the right combinations will encourage the adoption of the new tools, by winning the buy - in of users, which is a crucial issue. third, collaborate with others, to share best operational practices and to build a coherent ai supervision framework. of course, i am thinking first of international cooperation, because ai - related issues are by their very nature global. in this area, while there may be nuances in terms of how to proceed, i note above all that many 2 / 3 bis - central bankers'speeches jurisdictions are expressing similar concerns, which should enable international cooperation to move forward. but we also need to cooperate with authorities in other sectors, especially competition, cyber security, fundamental rights and even the green transition, as ai - related concerns are largely interconnected. in my view, these different forms of cooperation are an essential condition if we are to contribute to the emergence of the most relevant and resilient ai models, in other words, if we are to influence the development of the technology in the direction of the general interest. thank you for your attention. 3 / 3 bis - central bankers'speeches