5. What assessment has the First Minister made of the Centre for Cities analysis that 112,000 workers could face losing their jobs in Cardiff, Swansea and Newport alone, as a result of automation? OAQ51741

Well, predictions of this sort are never straightforward, but we know that there will be a destruction of some jobs by new technology—that we have to accept. The question, of course, then is: can we then be a net creator of jobs through advances in technologies? Addressing challenges and opportunities presented by automation and digitisation is at the heart of our economic action plan.

Thank you. The indications are consistent with other analyses. China recently unveiled plans for a £1.5 billion research park dedicated to the development of artificial intelligence. The United Arab Emirates have appointed a Minister for AI and announced a cross-Government strategy. Their prime minister, Sheikh Mohammed, has said,

'We want the UAE to become the world's most prepared country for artificial intelligence'.

Countries all across the world are gearing up to face the challenges and grasp the opportunities that automation presents, and Wales needs to act fast to be a shaper and not just an adopter of new technologies. Does the First Minister agree that we need cross-Government action, and will he commit to establishing a unit to get Wales ready for automation?

We do need cross-Government action, there's no question about that. I pay tribute to the Member and his huge interest in this, and he flags up an issue, a challenge, that we must meet in the future. I can say that groups across Welsh Government are already exploring the impact of technology and data on public service delivery. We obviously work with businesses.

I know the Cabinet Secretary is considering the creation of a FinTech task and finish group to look at the technologies surrounding financial and professional services, building on the digital action plan that lays out our own commitments to improving our own digital services, and we are working with the UK Government as well. We are actively engaged with the recently launched UK knowledge transfer networks for manufacturing initiative, which is aimed at realising—and you'll recognise the phrase, of course—the fourth industrial revolution, and that team is exploring ways to optimise the application of that programme to Wales.

There are other programmes that we have taken forward, but I can assure the Member that we know that the challenge is there and we intend to meet that challenge.

First Minister, Lee Waters just rightly referred to the urban hubs of south Wales as being most vulnerable, in the first instance, to the effect of automation, and the figures that Lee Waters quoted were astounding. I agreed with your answer that we need to make sure that we are trying to get ahead of the curve in terms of competing with other countries in this respect, and making sure that the challenges posed by artificial intelligence are dealt with. But I didn't hear your answer. Can you give us some concrete examples of how you're going to refocus Welsh Government economic policies to face these challenges ahead, to make sure that areas such as Newport, Cardiff and Swansea, also other urban areas of Wales, and the city region areas that they support and that support them will be able to meet the challenge of the future and get ahead of the curve, which we desperately need?

Our economic action plan clearly identifies the automation and digitalisation challenges that we face—the key strategic challenges and opportunities. Just to build on the answer I gave to the Member for Llanelli, we will be launching our enhanced smart innovation business support in April 2018 for manufacturing and design processes, and that will include support for businesses for planning and preparing for the implementation of technologies associated with the fourth industrial revolution. Over the last 12 months, Industry Wales has supplied a number of reports to the Cabinet Secretary on the risks and opportunities that automation will have on the Welsh economy.