AI's Impact on the Economy: Don't Pretend You Understand the Details
The renowned economist Daron Acemoglu, who is often considered the top economist in the world, has co-authored a book on the creation of artificial intelligence (AI) with Simon Johnson. The book argues that society cannot leave the creation of AI to entrepreneurs and venture capitalists.
Despite the advancements in AI, the U.S. job market remains as strong as it has ever been in the country's history. This strength indicates a certain level of resilience against potential negative impacts that AI may have on the job market.
However, it's important to note that the evidence suggests that AI has not yet had a significant impact on the job market. This contradicts a new idea that has taken hold among many Americans, believing that AI will be bad for the economy and society.
Acemoglu's book also suggests that AI will destroy jobs and cause a massive rise in inequality. However, he also thinks that all that automation won't do much to raise productivity. This implies that while AI may cause job loss, it may not necessarily lead to increased productivity.
The average American is generally negative about AI, with a high level of apprehension towards the technology. This apprehension is not limited to the general population, as AI pessimism is prevalent among the intelligent American population as well.
The U.S. stands out as particularly apprehensive about AI in international comparisons. This apprehension is not unfounded, as some people in the AI industry believe that the products they're creating will eventually make large segments of humanity obsolete.
Despite these concerns, each instance of AI pessimism has thus far proven to be a false alarm. The "AI is killing jobs for new graduates" narrative appears to be unfounded, as the U.S. job market remains strong despite AI developments.
Acemoglu has published about the economic impact of artificial intelligence in recent years primarily in academic journals and through working papers at the Massachusetts Institute of Technology (MIT). His work provides valuable insights into the potential economic consequences of AI and offers suggestions for how society can navigate this rapidly evolving field.
In conclusion, while AI may have the potential to cause job loss and increased inequality, the current situation suggests that these concerns may be premature. However, it is crucial for society to continue monitoring the impact of AI on the job market and to consider Acemoglu's suggestions for how we can shape the creation of AI to benefit everyone.
