Effects of Artificial Intelligence on Economy

Introduction of Effects of Artificial Intelligence on Economy

            AI or Artificial Intelligence is a term which is utilized for describing machines which are able to perform different cognitive processes similar to humans such as interacting, reasoning, understanding, and learning. It can generally take several forms such as a part of process, technical infrastructure, or an end-product. It is highly possible that artificial intelligence can transform the manner in which modern societies work and live. Even today, smart assistants such as Cortana carry out several tasks for users. In addition, Tesla cars are generally connected and things and they eventually learn different things which are shared across other cards.

            Rapidly rising computer connectedness and power have made it easily possible to share and compile large volumes of important data, which is now easily accessible. With the emergence of artificial intelligence, questions arise of how much AI will influence economy, consumers, and businesses in general terms. There is an international record that technologies of artificial intelligence possess the potential of revolutionizing the process of production and contributing to addressing prime issues.

Research Question of Effects of Artificial Intelligence on Economy

            Is artificial intelligence helpful or hurtful to our economy? What are three reasons you hold this viewpoint?

Discussions of Effects of Artificial Intelligence on Economy

            The majority of researches generally emphasize that artificial intelligence will have a large and critical impact on economy. Research which was initiated by Accenture covering twelve economies, forecasts that artificial intelligence by 2035, could double the international growth rates of economies. This growth will be driven by artificial intelligence in three different ways. First of all, it will lead to an effective increment in the productivity of labor because of innovative technologies allowing more efficient workforce. Due to this efficient workforce, the consumption of time will significantly decrease. Secondly, a new virtual workforce will be created by artificial intelligence. It is also explained as intelligent automation as it enables resolving issues. Thirdly, innovation diffusion will also benefit the economy which will impact different sectors while creating new streams of revenue.

            It has also been determined that international GDP might rise over fourteen percent by 2030 as a consequence of enhancing the take-up and development of artificial intelligence. It has also been anticipated that the wave of this revolution will significantly influence other sectors of life as well besides economy. It will increase both automation and standardization while enhancing the customization of services and products. Productivity will also be increased because of business assisting and complementing the existing workforce with the technologies of artificial intelligence. However, it will need investment in machines, systems, and software on the basis of augmented, autonomous, and assisted intelligence. This wouldn’t only allow the workforce to conduct its tasks in a better way but also reduce the consumption of time to focus more on activities which have more value. Further facts will be provided in the actual paper (Aghion, Jones, & Jones, 2017).

Conclusion of Effects of Artificial Intelligence on Economy

            Overall, it can be said that artificial intelligence is capable of benefitting the economy. As explained above, it shows immense potential of automating tasks and reducing the consumption of time. However, some precautions have to be considered as well. The consideration of these precautions will make implementing the AI more effective. More information will be offered in the actual paper.

References of Effects of Artificial Intelligence on Economy

Aghion, P., Jones, B. F., & Jones, C. I. (2017). Artificial intelligence and economic growth. National Bureau of Economic Research.