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Artificial intelligence is shaping the economy of the future, resulting in a US$7 trillion rise
The last several years have seen significant changes as a result of a variety of circumstances. Covid-19 has had a considerable influence on how we interact. In this regard, technology has proven critical, pushing hitherto imagined bounds. Furthermore, another type of technology, artificial intelligence (AI), has evolved or acquired significant popularity.
According to John McCarthy, a computer scientist and AI expert, artificial intelligence is about creating intelligent robots that do tasks close to human intellect. However, AI is not confined to techniques that can be seen physiologically. According to this notion, humans will be entirely replaced by machines. But the question is whether computers can truly achieve human intelligence and do activities only humans can do.
The fact is that artificial intelligence is not a novel concept in finance; hedge funds have used it for decades. They utilize algorithms to pick which stocks to invest in or whether to go long or short on a certain stock. It is argued that retail investors will never be able to regularly outperform hedge funds, in part because those big fish have access to sophisticated techniques like machine learning, making it hard for private investors to compete with them.
One of the key reasons we're looking for an answer to the original question is to check if a computer, in any form, can execute the jobs we're working on. This worry derives from the possibility that AI would exceed humans in efficiency and speed. If a corporation can replace its personnel with machines, it will save money and become more efficient. As a result, if this is true, it is evident that many people would lose their employment, and many professions as we know them may disappear within a few years. This consequence, however, should not come as a surprise, given that similar events have occurred in the past with the emergence of technology.
But what impact would this have on the economy? Some people feel that artificial intelligence will be a game changer in the economy. According to Goldman Sachs, broad adoption of artificial intelligence might result in an annual rise of US$7 trillion in global GDP, or nearly 7%, within 10 years and a 3% improvement in yearly worker productivity. Other experts, however, are skeptical and believe AI will only fuel faster development in the next 30 years. So, the issue remains: who is accurate, and who needs to be corrected in their forecasts of the future?
Again, if we go back in time, we can see that technology has yet to reshape the global scene on its own entirely. Even inventions such as the spinning jenny, frequently credited to the industrial revolution, were impacted by various other reasons. On the other hand, Ordinary people are more concerned with their situations than with the broader influence on the economy. People are more concerned with whether they will lose employment than whether AI will cause a boom or a bust. According to some AI specialists, implementing large language models (LLMs) might affect at least 10% of job duties for around 80% of the US workforce.