
WHAT WILL BE THE FINANCIAL IMPACT OF REPLACING HUMAN WORKERS WITH AI?
In this article by Irving Wladawsky-Berger for The Wall Street Journal - Wladawsky-Berger makes several points on the impact that AI could have on the global economy. It appears that Wladawsky-Berger did an excellent job of covering both the positive and negative economic effects as he explores both the potential and the harm that AI could have on the markets. I found it fascinating that the article starts right away by saying "Artificial intelligence has the potential to incrementally add 16 percent or around $13 trillion by 2030 to current global economic output-- an annual average contribution to productivity growth of about 1.2 percent between now and 2030" (Wladawsky-Berger).
I knew that AI has the potential to increase profits for the companies that employ it. However, I never considered how that could also increase economic production. It makes sense that if companies could make more products and thus more profit that they could also be adding value to the global market. This also ties into the theory that increased production will increase demand, thus increase workers needed that I talked about here.
In another article by Mark Anderson by the IEEE organization summarizes points made by industry professionals at the MIT Future of Work symposium. The professionals spoke on a number of topics dealing with automation, the job market, and financial impact.
One of the speakers, Andrew McAfee, brought up a good point, he said, "We have some breathing room right now, Economic growth has been pretty good. Unemployment is pretty low. Interest rates are very, very low. We might not have that war chest in the future.” (Anderson)
This is an excellent point. As of right now, we have been in an excellent position financially and have been very good at keeping unemployment down the way it is right now in the future. However, he points out that we need to look at the future and plan for what could happen if the job market stops growing and if that leads to an economic depression.