The Impact of AI on the Current Economy

“Roboy, a robot developed by the artificial intelligence laboratory of the University of Zurich, is presented to the media.” Photograph: Samuel Truempy/EPA

Automation technologies, including artificial intelligence, are currently impacting the economy. There has been a major increase in the amount of industrial robots across the globe (Karsten & West, 2015).  The prices of these robots are decreasing, and they are able to operate without any interruption throughout the day, which makes them competitive in terms of both cost and capability (Karsten & West, 2015). As these technological advancements become more affordable, capable and widespread, they will have even more applications in the economy (Karsten & West, 2015). For instance, in the service sector, computer algorithms can execute stock trade in a staggering fraction of a second, which is far quicker than any human could (Karsten & West, 2015). If automation technologies risk job security in the future, it is said that there needs to be a way to to deliver benefits outside of employment (Karsten & West, 2015). “Flexicurity,” also known as flexible security, is one way that has been proposed in order to provide healthcare, education and housing assistance (Karsten & West, 2015). Other considerations that have been mentioned are expanding on the Earned Income Tax Credit, providing basic income and encouraging corporate profit sharing (Karsten & West, 2015).  

According to existing research, we are in a period of transition. As a result, experts are not in agreement as to how large the impact of automation technologies, like artificial intelligence, will be on the workforce (Karsten & West, 2015). Some believe that there will be a massive increase in unemployment, while others feel that technology may create new jobs that will employ those who were displaced from their previous positions as a result (Karsten & West, 2015). Further, in 2014 the Pew Research Center surveyed around 2,000 industry experts; they found that they were extremely divided on how robotics and artificial intelligence will affect jobs and the economy in subsequent decades (Stephens, 2015). These experts are also in disagreement in regard to how automation technologies will affect the economics of employment (Stephens, 2015).  

 

Reference:

Karsten, Jack, and Darrell M. West. "How Robots, Artificial Intelligence, and Machine Learning Will Affect Employment and Public Policy." The Brookings Institution. 26 Oct. 2015. Web. 29 Nov. 2015. <http://www.brookings.edu/blogs/techtank/posts/2015/10/26-emerging-tech-employment-public-policy-west>

Stephens, Rachael. "Robots at Work: The Economic Effects of Workplace Automation." Journalist's Resource. 22 Sept. 2015. Web. 29 Nov. 2015. <http://journalistsresource.org/studies/economics/jobs/robots-at-work-the-economics-effects-of-workplace-automation>