Artificial intelligence (AI) has been around for decades, but it has recently become a hot topic in the business world (and other worlds too). Seems like the seeds that were planted decades ago are beginning to sprout and reach the public sphere. The technology is cool and fascinating. It will no doubt alter a lot of things for good or bad.
How will AI influence the economy? What possible scenarios will AI create in the economy? Will its impact be positive or negative? This are some of the things I will talk about in this article.
The Fate Of Manufacturing Jobs
Manufacturing jobs have always been boring and repetitive. They have been replaced by AI robots to a large extent. However, AI could also create industrial jobs that weren't previously possible.For example, AI may be able to solve complex problems in a way that humans (with our perceived limited brain capacity) cannot by using data sets and machine learning to find solutions for unexpected problems.
This could lead to new industries and careers that don't exist today, such as an "AI engineer" who works with computers and software to solve these problems in order to create more efficient systems that churn out better products or services.
This is a possible scenario because AI isn't autonomous. Everything is a mess and humans will need to be at the helm.
On the other hand, other jobs will likely disappear as technology advances further. One example would be manufacturing jobs of all kinds.
While robots were originally designed solely for industrial purposes (to perform repetitive tasks), they're now being used in various fields outside of manufacturing including healthcare, agriculture and transportation and so forth.
I think the goal is to make it as humanly as possible. Instead of AI being a specialist, we want to make it a generalist just like us. Tesla's Optimus robot is the prototype that's leading the way.
New Jobs, New Industries
AI is an industry in and of itself with different jobs and sectors. The industry might be the base layer and layer 2 could be the intersection of AI and another industry. For example, Finance X AI or Media X AI. This is just an analogy, let me know if it makes sense.This will obviously give birth to new job sectors, roles, titles and descriptions for jobs that didn't exist before. However, It could pose a challenge for human workers because AI often does the job more efficiently than humans. We sadly can't compete with it when it comes to speed.
But on the flip side, this will also create new or more opportunities for those who want to learn new skills or 'up skill'.
For example:
AI video editor. When you need an animated video produced or edited quickly, there could be individuals out there who will do it for you in minutes with the help of AI software that can cut out all the boring parts or make the presentation look good. I don't think this has become a reality yet but it will be one day.
What's already a reality is content or code writing with AI and images too, creating spectacular images! These are usually call 'Bots'.
It's a gray area though. One of the thought processes I encounter when contemplating these things is why pay someone to do it when you can go directly to the software thereby eliminating the middleman?
Since it's a gray area, there is no one or right answer. One answer could be that the software is an 'apprentice' while the middleman is a 'master'.
More Dynamic Economy
The economy is an ever-changing and dynamic system. It's always in flux, and it's been redesigned many times over the years. AI will also add to the redesigning and help bring about this dynamism by providing businesses/individuals with tools to grow, make better decisions and make more money.This can happen in a number of ways. First, it allows them to focus on other aspects of their business. For example, with AI-powered customer service, you can spend more time developing your product or marketing strategy than making sure the phone is answered properly.
Second, AI frees up employees from tedious tasks that consume time and make them less efficient at their jobs. That way they have more time to focus on projects where they are personally invested and passionate about while also boosting productivity.
Thirdly, AI helps businesses scale by enabling employees to take on new roles that require specialized expertise or knowledge in order for them to succeed at their jobs well enough. This could eventually lead them to be 'promoted' into leadership/managerial positions.
Final Thoughts
AI will generally have a positive impact on the economy but there will be some negatives here and there too. Especially in its early phases where everything is chaotic and without definitive form. However, there is always a caveat with every new technology. Good intentions can lead to bad outcomes. Mark Zuckerberg didn't intentionally build Facebook to 'unethically' mine users' data. Did he?
Thanks For Reading!
Profile: Young Kedar
Recent Posts;
● Navigating Through The FUD In The Markets
● The 'Multidimensional' Nature Of Crypto
● Simple Tips To Better Manage Personal Cash Flow
● A Means To An End
● Capital Leverage And How To Employ It
