AI Adoption, Structural Constraints and Inclusive Growth: Evidence from Greece

Abstract

Artificial intelligence (AI), as a General-Purpose Technology, is reshaping both work and productivity. However, its implementation is contingent not solely on its technical capabilities, but also on sectoral capacity, institutional quality, and the state of human capital. This article, focusing on Greece—a peripheral EU economy with substantial projected AI benefits but considerable structural limitations—develops a structural conversion framework linking three dimensions: capacity for AI-driven sectoral upgrading; institutional readiness beyond digital infrastructure; and the regeneration and retention of skilled labour. Employing micro-level data, it formulates indices for institutional trust, digital confidence, and service usability. The analysis uncovers a structural mismatch: while usability improves with education, digital confidence is primarily influenced by performance rather than legitimacy. Moreover, Attica demonstrates a conflict between elevated institutional trust and inadequate user-centric quality. These findings underscore a fragmented transition characterised by social and regional imbalances, implying that inclusive growth necessitates a policy shift away from simple deployment and towards the institutional conversion of technological resources.