Artificial Intelligence (AI) is increasingly recognized as a transformative force in the global economy, with discussions focusing on its potential to drive productivity, economic growth, and societal change. The "Exploring Moonshots" series has delved into this topic, offering insights into the economic implications of AI.�

AI as a General-Purpose Technology

AI is often viewed as a general-purpose technology (GPT), akin to electricity or the internet, with the capacity to revolutionize various sectors. Its applications range from automating routine tasks to enhancing decision-making processes, thereby influencing productivity and economic structures. �
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Dawson College
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Economic Growth and Productivity

While some forecasts suggest that AI could significantly boost economic growth, recent analyses present a more conservative outlook. For instance, MIT Institute Professor Daron Acemoglu estimates that AI might contribute a modest increase in GDP, ranging from 1.1% to 1.6% over the next decade, with an annual productivity gain of approximately 0.05%. �
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MIT Technology Review
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MIT Economics
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Impact on Employment and Inequality

The integration of AI into the workforce raises concerns about job displacement and widening income inequality. While AI can automate certain tasks, potentially leading to job losses in specific sectors, it also creates opportunities for new roles that require advanced skills. The net effect on employment depends on various factors, including the pace of AI adoption and the adaptability of the workforce. �

Policy and Regulation

To harness the benefits of AI while mitigating its risks, thoughtful policy interventions are essential. This includes updating regulatory frameworks to address challenges related to data privacy, security, and the ethical use of AI. Additionally, policies that promote education and reskilling can help workers transition into new roles created by AI advancements. �
De Gruyter
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Financial Times
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arxiv.org
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