The Rise of Artificial Intelligence
Introduction
The rise of artificial intelligence is a significant topic that needs comprehensive research. Artificial intelligence is no longer an emerging technology, it is already making its presence felt across sectors and it is constantly evolving to become even more powerful, so, the future is certainly going to be impacted by AI (Acemoglu, D., & Restrepo, 2020). Now the question is in which ways, different sectors will be fully integrating AI into their system and most of their mundane tasks would be automated. In healthcare, one could expect an accurate diagnosis and preventive care powered by AI, with personalized medication. In other sectors like retail, there would be a more personalized approach to grab customer attention. In business in general, AI would help lessen the chances of error and its predictive capability is going to be a game-changer for companies (Ernst, Merola & Samaan, 2019). There will be more specialized job roles created, demanding a fresh set of professionals who are familiar with AI. These are some of the reasons why further research is needed on the topic. AI also poses significant risks such as cyber threats, deep fakes, job loss, inequality, and weapons automation. There are also several ethical implications linked to the rise of artificial intelligence such as bias, violation of privacy, and manipulation of human judgment.
Thesis Statement
While the growth of artificial intelligence may bring out positive changes in the world including economic expansion and more effective services, it may lead to negative impacts that can be prevented by improving collaboration between different countries and research groups and coming up with effective policies that will ensure AI is directed towards the common good and augmenting humans.
Annotated Bibliography
Acemoglu, D., & Restrepo, P. (2020). The wrong kind of AI? Artificial intelligence and the future of labor demand. Cambridge Journal of Regions, Economy, and Society, 13(1), 25-35. https://doi.org/10.1093/cjres/rsz022
Acemoglu and Restrepo provide an overview of how artificial has influenced every aspect f people’s life including the automation of tasks. According to the authors, AI is more biased towards automation and fails to pay attention to the creation of new jobs. This has led to rising inequality, stagnating labor demand, lower productivity growth, and a decrease of labor share in national income. Also, they highlight how artificial intelligence can be used to grow the economy of a developed country. He states that the underlying principle to achieve that kind of growth is by developing computer systems with the capabilities of handling individual tasks. In this way, workers have got more time to create and innovate. The author believes that AI has the skills to double a country’s GDP growth rates and at the same time, increasing labor productivity. Besides its advantages, many people are reluctant to adapt to the system fearing that they will lose their jobs. As such, the information in this article will be vital in enabling the reader to understand the outcomes of AI on the economy and future business culture.
Ernst, E., Merola, R., & Samaan, D. (2019). Economics of artificial intelligence: Implications for the future of work. IZA Journal of Labor Policy, 9(1), 1-35. doi:10.2478/izajolp-2019-0004
Ernst and others researched the kinds of policies needed to respond to the positive and negative impacts of AI. The authors spell out different ways in which new technologies introduce new jobs, displace some workers, and increase productivity. The research mainly focuses on what can be done by industries and countries to ensure they positively gain from technological advancements. Nonetheless, the authors note that the advancements in technology have created fear of losing jobs and inequality among the people. The authors also argue that as a result of AI, significant opportunities in terms of productivity can be realized given the reduced costs of capital. Since this paper was reviewed by several experts, this article is reliable for research. Its main strength it allows researchers to get compressive data from studies conducted by current and previous authors. This paper will provide vital information on how to counter the impacts of AI on economic growth.
Flynn, J., Dance, S., & Schaefer, D. (2017). Industry 4.0 and its Potential Impact on Employment Demographics in the UK. Advances in Transdisciplinary Engineering, 6(1), 239-244. https://doi.org/10.6595 /j.procir.2027.03.088
In this study, Flynn, Dance, and Schaefer discuss the changing trends in industrialization. The industry transformation process is denoted as industry 4.0. According to the authors, the manufacturing sector is transforming into smart factories of the future. As such, the study indicates there is a need for a highly educated workforce to meet the requirements of industry 4.0. The authors suggest that at the moment, the education system fails to adapt fast enough to retort to the employment strains of the 4th revolution. Although the authors believe that industry 4.0 will lead to increased productivity, they state that if the issue of education is not addressed, it will lead to disparities between labor supply and demand, resulting in high unemployment rates. Further, the authors add that AI will have a progressive impact on many other sectors, especially the education and construction industries in the future. This article is significant for this research since it provides adequate information concerning the growth of AI and its impacts.
Gries, T., & Naudé, W. (2018). Artificial intelligence, jobs, inequality, and productivity: Does aggregate demand matter? IZA Discussion Paper No. 12005, Available at SSRN: https://ssrn.com/abstract=3301777
In this paper, the authors re-assess predictions made by other authors, including artificial intelligence, which leads to mass unemployment, inequality, and higher productivity by incorporating two factors. First, the author surveys the current works, and second, he incorporates AI computerization into a product variety model to allow for demand-side constraints. Their research shows that economic growth will rise as AI progresses, and in the process, some types of the labor force will be improved, and others replaced. Gries and Naude believe that massive job losses, higher productivity, and GDP is a result of AI adoption cannot be a reality. To this extent, they provide evidence showing that unemployment in developed economies is very low. Besides its advantages, many people are reluctant to adapt to the system fearing that they will lose their jobs. As such, this paper will give the reader a theoretical clarification of the impacts of AI in an economy.
Petropoulos, G. (2018). The impact of artificial intelligence on employment. In Praise for Work in the Digital Age, 119. Washington, DC: Rowman & Littlefield International Ltd.
Petropoulos believes that the global economic effects associated with artificial intelligence (AI) will depend on technological advancements in the future. That is, weak artificial intelligence will result in more limited economic impacts, while strong artificial intelligence will lead to more significant economic effects. Industries that develop or manufacture AI technology will have a direct GDP while sectors employing any form of AI will experience indirect GDP through increased productivity. The authors believe that AI has the skills of doubling a country’s GDP growth rates and at the same time, increasing labor productivity. The authors agree that it is challenging to determine the success of AI adoption accurately; hence, future economic effects cannot be estimated. To this extent, it is clear that even though AI will affect the labor force, it does not mean it will lead to unemployment. As such, the information in this article will be vital in enabling the reader to comprehend the implications of AI on the economy.
References
Acemoglu, D., & Restrepo, P. (2020). The wrong kind of AI? Artificial intelligence and the future of labor demand. Cambridge Journal of Regions, Economy, and Society, 13(1), 25-35. https://doi.org/10.1093/cjres/rsz022
Ernst, E., Merola, R., & Samaan, D. (2019). Economics of artificial intelligence: Implications for the future of work. IZA Journal of Labor Policy, 9(1), 1-35. doi:10.2478/izajolp-2019-0004
Flynn, J., Dance, S., & Schaefer, D. (2017). Industry 4.0 and its Potential Impact on Employment Demographics in the UK. Advances in Transdisciplinary Engineering, 6(1), 239-244. https://doi.org/10.6595 /j.procir.2027.03.088
Gries, T., & Naudé, W. (2018). Artificial intelligence, jobs, inequality, and productivity: Does aggregate demand matter? IZA Discussion Paper No. 12005, Available at SSRN: https://ssrn.com/abstract=3301777
Petropoulos, G. (2018). The impact of artificial intelligence on employment. In Praise for Work in the Digital Age, 119. Washington, DC: Rowman & Littlefield International Ltd.
