AI has created an intensive discussion concerning the outcomes of AI on the economy among economists, policymakers, and the general public. On the one hand, some argue that AI is the prime efficiency booster and will increase economic growth and development. On the other hand, though, some put a warning sign reminding that the correlation between AI and the labor market and economic stability is and most probably will remain not so clear cut and unpredictable.
Economic predictions and realities
Recent research and specialist opinions regarding AI employment opportunities depict complex roles. A research piece from the International Monetary Fund (IMF) unveils that the proclamation that policymakers can celebrate having defeated AI-caused inflation is assuming too much, showcasing that the future impacts of AI on economic fundamentals could not be comprehended just yet [1].
The same study conducted by MIT also points at the prospects of human substitution with AI being not as useful as assumed because AI is quite expensive both to apply and to maintain (2)
Reciprocally, the workforce is an important aspect as well. Goldman Sachs claims that by 2030, the number of jobs that AI could jeopardize could be up to 300 million, intense stress levels, more surveillance, etc., and that is going to alter the way the global labor markets.
This pinpoints the possibility that AI could wrestle job opportunities from the hands of laborers and, therefore, diminish livelihoods across the globe.
Opportunities and risks
In spite of the challenges associated with AI, it also has immense potential for economic expansion and system operation. The tool can process and promptly work with vast amounts of data through its unmatched capacity, which could tremendously boost productivity and, in turn, innovation.
For example, AI systems can be utilized in the healthcare, financial services, and logistics sectors to reform the way services are delivered and completely change operational efficiency.
They conclude that although AI provides wonderful output, we have to make sure that this isn’t too overwhelming, along with its risks, which include misinformation, privacy issues, and its impact on inequality [5].
It is very important to show the effectiveness of constructive plans that help grasp AI’s benefits despite its negative impacts.
Regulatory and ethical considerations
The emergence of global calls for AI policies is a step towards managing AI’s economic implications. European Union AI rule-making, as a pioneer, is focused on developing ethics and AI usage guidelines across the globe, with this initiative as a precedent.
These principles might be instrumental in shaping an environment for the success of an AI-powered economy oriented toward human welfare.
Although AI offers many economic chances, it doesn’t have the science behind it, and the numerous issues brought about by the AI economy make it untimely to fully cheer about the AI economy.
A balanced and well-informed approach, based on the principle of improving AI’s economic impact while promoting political practices that are not detrimental to society, will be key.
News sourced from koreajoongangdaily
