AI’s Presence is Reshaping Our Economy

Uncover the far-reaching effects of AI impact on global economy. Discover how AI is changing investments, sectors, and the labor market.

AI has made its way into our lives in every aspect, and it has shown the AI impact on the global economy by enhancing the performance of companies and industries.

Living in a technological era has transformed life as we know it. Many speculations have been made on how the economy could be boosted or disrupted by these technological advancements, particularly AI. It is known that AI has the power and is currently impacting multiple aspects of the economy, such as the labor market, current investments, and the productivity of sectors.

What AI?

When speaking about AI, many may focus on generative AI, but there are various types of AI that could be used to impact the economy. Let us take a look at the labor market as an example of how AI, not just generative AI, will impact the economy.

  • Human-in-the-loop (HITL) technologies: This field includes various systems, software, and machines that aid the workforce. These technologies are designed to aid and improve efficiency. For example, Google’s search engine uses HITL, which allows employees to perform better on their tasks and be more efficient, thereby generating more revenue for a company when the process of task completion is eased for the employee.
  • No-human-in-the-loop technologies: In this field, we discuss automating processes, such as robotics. This area could be tricky because it creates a tilt in the economy. You might be wondering why. This is due to advancements that leave some labor workers without jobs. Coffee shops in Japan are applying this concept and employing robots to make coffee. Imagine a coffee without a soul. Chatbots have now taken over most of the customer service roles.

AI’s Potential Impact on the Economy

AI technology is taking over human growth in the workforce. AI has the power to take over automated trading, which allows for a faster pace in purchasing and selling decisions. According to a Goldman Sachs 2022 report, due to the usage of AI, the global GDP is said to increase by 1.5% in the next decade by stimulating commerce, investment, and international cooperation, as highlighted by the World Economic Forum. AI will be the reason trillions of dollars are pumped into the global economy.

The tilt in the economy would occur in countries that cannot afford or do not want to employ AI. This would lead these countries to miss out on the opportunity of keeping up with worldwide developments.

At the end of the day, we cannot live with excessive AI use, and we cannot live without it.

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