A Short Review on the Economics of Artificial Intelligence (original) (raw)
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Introduction to "The Economics of Artificial Intelligence: An Agenda
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Artifi cial intelligence (AI) technologies have advanced rapidly over the last several years. As the technology continues to improve, it may have a substantial impact on the economy with respect to productivity, growth, inequality, market power, innovation, and employment. In 2016, the White House put out several reports emphasizing this potential impact. Despite its importance, there is little economics research on the topic. The research that exists is derived from past technologies (such as factory robots) that capture only part of the economic reach of AI. Without a better understanding of how AI might impact the economy, we cannot design policy to prepare for these changes.
Economics of Artificial Intelligence: Implications for the Future of Work
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The current wave of technological change based on advancements in artificial intelligence (AI) has created widespread fear of job loss and further rises in inequality. This paper discusses the rationale for these fears, highlighting the specific nature of AI and comparing previous waves of automation and robotization with the current advancements made possible by a widespread adoption of AI. It argues that large opportunities in terms of increases in productivity can ensue, including for developing countries, given the vastly reduced costs of capital that some applications have demonstrated and the potential for productivity increases, especially among the low skilled. At the same time, risks in the form of further increases in inequality need to be addressed if the benefits from AI-based technological progress are to be broadly shared. For this, skills policies are necessary but not sufficient. In addition, new forms of regulating the digital economy are called for that prevent fur...
The transformative economic impact of Artificial Intelligence
Background: The swift assimilation of Artificial Intelligence (AI) across multiple industries is altering the worldwide economic terrain. Unprecedented opportunities and difficulties are brought about by this revolutionary technology, which has an impact on innovation, trade, labor markets, and security. Objective: The goal of this study is to thoroughly investigate the economic effects of AI by exploring how it may affect labor markets, innovation, trade internationally, and security. The goal is to offer insights that support strategic decision-making and policy formation by examining current trends, opportunities, and difficulties. Results: The research highlights the dual character of artificial intelligence's influence, highlighting both its potential to spur economic expansion and its drawbacks, including the loss of jobs, a lack of standards, and security issues. The study highlights how crucial cooperation is to overcoming these obstacles and realizing AI's full potential. Conclusion: The balancing opportunities and risks becomes critical as AI continues to change the economic landscape. The report promotes proactive steps including ethical AI design guidelines, ongoing worker retraining, and flexible regulatory strategies. As we shape an AI future that puts inclusion, creativity, and responsible governance first, collaboration emerges as a key theme.
Artificial intelligence, employment, and income
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Artificial intelligence (AI) will have many profound societal effects It promises potential benefits (and may also pose risks) in education, defense, business, law, and science In this article we explore how AI is likely to affect employment and the distribution of income. We argue that AI will indeed reduce drastically the need fol human toil We also note that some people fear the automation of work hy machines and the resulting unemployment Yet, since the majority of us probably would rather use our time for activities other than our present jobs, we ought thus to greet the work-eliminating consequences of AI enthusiastically The paper discusses two reasons, one economic and one psychological, for this paradoxical apprehension We conclude with a discussion of problems of moving toward the kind of economy that will he enahled by developments in AI ARTIFICIAL INTELLIGENCE [Al] and other developments in computer science are giving birth to a dramatically different class of machinesPmachines that can perform tasks requiring reasoning, judgment, and perception that previously could be done only by humans. Will these I am grateful for the helpful comments provided by many people Specifically I would like to acknowledge the advice teceived from Sandra Cook and Victor
The Macroeconomic Impact of Artificial Intelligence
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The general purpose of this scientific paper (Paper) is to analyze the impact of artificial intelligence (AI) and digitalization on the macroeconomics of the EU member states (including Romania). To reach the general objective, 6 specific objectives were selected: the analysis of the birth and evolution of the concept of AI; identification and analysis of various forms of artificial intelligence, of its possible impact on the aggregate economy, based on the findings of the scientific writings; identification of the relevant sources of statistic data and information enabling us to undertake an inter-state comparative study regarding AI and digitalization; analysis of the intensity and sense of the correlation between various indicators expressing the use of AI systems and digitalization, in the EU; analysis of the interdependence between the average GDP per capita and labor productivity on the one hand, and the AI and digitalization levels, on the other; analysis of the interdependen...
Artificial Intelligence and Economic Growth: A Theoretical Framework
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The growing adoption of Artificial Intelligence (AI) has sparked ubiquitous concerns worldwide. Artificial intelligence can affect economic growth and employment. The influence is assumed to be substantial because the adoption of AI technology may lead to increased productivity, lower wages, prices, and labor substitution. Artificial intelligence can affect global economic growth with its widespread adoption and diffusion. We mathematically examined the effects of AI on economic growth, reiterating how AI is unique as a production factor. The models show that AI capital lowers capital prices, increases wages, and augments productivity. Besides, AI capital positively affects the labor share and vice versa, provided that AI and labor are complementary. We improved a task-based model to show AI raises both labor share and wages by generating new tasks. We also present the potential policy implications of AI adoption. We conclude AI can contribute to economic growth. Labor-abundant coun...
Economic Policy for Artificial Intelligence
Innovation Policy and the Economy, 2019
Thanks to participants at the 2017 NBER Conference on the Economics of Artificial Intelligence and at the 2018 NBER Innovation Policy and the Economy Conference for ideas and comments. We thank the Sloan Foundation for financial support of the NBER Economics of Artificial Intelligence initiative. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at http://www.nber.org/papers/w24690.ack NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.
Possible Effects of Artificial Intelligence on The Economy
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This year, we were together with about 140 young and experienced researchers, Ph.D. students, post-doctoral researchers, academicians, and professionals from business, government and non-governmental institutions from over 20 different countries and enjoy about 140 presentations. ICOAEF 2017 attracting such a high number of particiapts is a good indicator of the success and means the conference serving its purpose and offer a good opportunity for scholarly exchange and networking.
International Journal of Current Science Research and Review, 2022
Artificial intelligence has swiftly penetrated our lives that eased our way of life. With its massive utility in healthcare, education and other commercial sectors, AI has evolved as a boon to the world. Nevertheless, atomisation has resulted in large-scale job loss, retrenchment and unemployment, substituting human labour, resulting in controversies about the significance of advanced technological progressions. This study argues about the extent to which AI has led to unemployment changing the macroeconomics versus the new job opportunities opened by AI and other technological developments, augmenting productivity level and improving quality of service delivered.