BUSINESSES in Wales must be helped to prepare for the introduction of new technology, an AM has said after an report said 112,000 jobs could be lost in Newport, Cardiff and Swansea due to automation.

The prediction was made in a Centre for Cities report released last month.

And, speaking in the Assembly earlier this week, Llanelli AM Lee Waters said "cross-government action" was needed to prepare for new developments.

"China recently unveiled plans for a £1.5 billion research park dedicated to the development of artificial intelligence," he said.

"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."

Replying, first minister Carywn Jones said: "Groups across Welsh Government are already exploring the impact of technology and data on public service delivery.

"We obviously work with businesses."

He added task and finish groups had been formed both within the Welsh Government and with the UK Government to examine what is being referred to as "the fourth industrial revolution'.

But he added: "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."

Calling the figures "astounding", Monmouth AM Nick Ramsay asked the first minister: "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?"

Mr Jones replied a new business support scheme would be launched in April targeted at companies implementing new technology.

The Centre for Cities report predicted one in five jobs in UK cities, 3.6 million in total, could be lost by 2030 as a result of automation and globalisation, with retail, customer service and warehouse jobs among those most at risk.