Increases in capital and labour are not any longer driving the amount of economic process the planet has become familiar with and desires. Fortunately, a replacement factor of production is on the horizon, and it promises to rework the idea of the economic process for countries across the planet.
Due to a variety of economic and political factors, businesses are struggling to extend capital investment and labour to propel growth. Traditionally, investment and labour levers are driving production however, they're not ready to sustain the steady march of prosperity enjoyed in previous decades in most economies. But long-term pessimism is unwarranted. With the recent convergence of a transformative set of technologies, economies are entering a period during which AI (AI) has the potential to steer within the new era and overcome the physical limitations and open-up new sources useful and growth.
According to Accenture’s Technology Vision 2017, AI has the potential to double annual economic process rates by 2035. To avoid missing out on this chance, policymakers and business leaders must steel oneself against, and work toward, a future with AI. they need to do so not with the thought that AI is just another productivity enhancer. Rather, they need to see AI because the tool which will transform our brooding about how growth is made.
Across the world, rates of gross domestic product (GDP) growth are shrinking. Moreover, this has been true for 3 decades. Key measures of economic efficiency are trending sharply downward, while labour-force growth across the planet is essentially stagnant. it's even in decline in some countries. Given this poor outlook, commentators say that a stagnant economy is that the “new normal.” On a good more pessimistic note, a prominent economist argues that productivity growth over subsequent quarter-century will continue at the sluggish pace. He believes that the past two centuries of “Great Inventions,” like the steamship and telegraph, are unlikely to be repeated. And this deficit of innovation, combined with unfavourable demographic trends, flagging educational attainment and rising wealth inequality, will slow economic progress.
So, are we experiencing the top of growth and prosperity as we all know it? We are witnessing the take-off of another transformative set of technologies, commonly mentioned as AI. Many see AI as almost like past technological inventions. If we believe this, then we will expect some growth, but nothing transformational. But what if AI has the potential to be not just another driver of total factor productivity, but a completely new factor of production? How can this be? The key's to ascertain AI as a capital-labour hybrid.
AI can replicate labour activities at much greater scale and speed, and to even perform some tasks beyond the capabilities of humans. to not mention that in some areas it's the power to find out faster than humans, if not yet as deeply. for instance, by using virtual assistants, 1,000 legal documents are often reviewed during a matter of days rather than taking three people six months to finish.
Clearing the trail to an AI future:
Entrepreneur Elon Musk has warned that AI could become humanity’s “biggest existential threat.” The more optimistic view of futurist Ray Kurzweil is that AI can help us to form “major strides in addressing the world’s grand challenges.” the reality is, it all depends on how we manage the transition to an era of AI. To fulfil the promise of AI as a replacement factor of production which will reignite economic process, relevant stakeholders must be thoroughly prepared – intellectually, technologically, politically, ethically, socially – to deal with the challenges that arise as AI becomes more integrated in our lives. The start line is knowing the complexity of the problems.
Prepare subsequent generation for the AI future:
Successfully integrating human intelligence with machine intelligence, in order that they coexist during a two-way learning relationship, will become more critical than ever. because the division of tasks between man and machine changes, policymakers got to re-evaluate the sort of data and skills imparted to future generations. Currently, technological education goes in one direction: people find out how to use machines.
Increasingly, this may change as machines learn from humans, and humans learn from machines. for instance, customer services representatives of the longer term will be got to act as “role models” to their digital colleagues, and potentially the other way around. Technical skills also will be required to style and implement AI systems, exploiting expertise in many specialities including robotics, vision, audio and pattern recognition. But interpersonal skills, creativity and emotional intelligence also will become even more important than they're today.
Encourage AI-powered regulation:
As autonomous machines take over tasks that have exclusively been undertaken by humans, current laws will got to be revisited. In other cases, the new regulation is named for. for instance, though AI might be enormously beneficial in aiding medical diagnoses, physicians avoid using these technologies, fearing that they might be exposed to accusations of malpractice. This uncertainty could inhibit uptake and hinder further innovation. AI itself is often a part of the answer, creating adaptive, self-improving regulation that closes the gap between the pace of technological change and therefore the pace of regulatory response.
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Advocate a code of ethics for AI:
Intelligent systems are rapidly getting into social environments that were once only occupied by humans. this is often opening-up ethical and societal issues which will hamper the progress of AI. These range from the way to answer racially biased algorithms as to if autonomous cars should give preference to their driver’s life over others within the case of an accident. Given how prevalent intelligent systems are going to be with in the future, policymakers got to make sure the development of a “code of ethics” for the AI ecosystem.
Address the redistribution effects:
Many commentators are concerned that AI will eliminate jobs, worsen inequality and erode incomes. This explains the increase in protests around the world on the introduction of a universal basic income. Policymakers must recognise that these apprehensions are valid. Their response should be twofold. First, policymakers should highlight how AI may result in intangible benefits. Beyond the workplace, AI promises to alleviate a number of the world’s greatest problems, like global climate change (through more efficient transportation) and poor access to healthcare (by reducing the strain on overloaded systems). Benefits like these should be clearly articulated to encourage a more positive outlook on AI’s potential.
Second, policymakers got to actively address and pre-empt the downsides of AI. Some groups are going to be affected disproportionately by these changes. to stop a backlash, policymakers should identify the groups at high risk of displacement and make strategies that specialise in reintegrating them into the economy.
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