Written by Prof. Mannixs E. Paul, PhD, FCFIP, FCIML, FCECFI, FFAR INTRODUCTIONIt has become a topic of debate among practitioners, professionals and experts that it is probable that the AI-driven economy that almost every institution and country is excited about will eventually collapse. ANALYSIS A few potential risks that has been highlighted include: Arguments Against AI:1. Job displacement: AI may cause job displacement. Job displacement refers to the situation where individuals, communities or organizations lose their livelihoods due to changes in the economy, often triggered by external factors, such as technological advancements, shift in technology policy and technological innovations. AI could replace millions of jobs, leading to significant economic disruption or collapse, particularly for baby boomers and those in sectors with high automation potential. Robert Kiyosaki warns that this, combined with inflation, could lead to economic collapse.2. Income inequality: This is also referred to as social inequality, which means the widening inequalities, especially in disposable income and wealth. The benefits of AI may be concentrated among a few dominant techies and tech companies, potentially stifling competition and widening the income and wealth gaps.3. Model collapse: Over-reliance on a single AI model or platform, used as an example to imitate models could lead to systemic vulnerabilities and potential collapse. Arguments for AI:However, the proponents of AI argue that AI could also:1. Drive growth: AI can actively help an individual, community or organization take steps to increase the size, revenue, or their overall success of the individual or organization. It can assist in implementing strategies and actions designed to foster expansion, improve performance, and achieve specific objectives. AI advancement has led to increased productivity, new industries, and job creation, particularly in regions with robust digital infrastructures and education systems.2. Increase efficiency: AI can enable the optimization of business processes, improve decision-making, and enhance innovation. CONCLUSIONUltimately, the future of an efficient AI-driven economy will depend on how effectively it is developed, deployed and managed. RECOMMENDATIONS To mitigate the potential risks of AI, some experts have made some useful suggestions or recommendations:Healthy competition should be promoted. To promote healthy competition, monopolies have to be regulated in the AI sector and funding public interest technology development.Next, there should be more investment in education and retraining. The workforce should be trained and equipped with skills to adapt to an AI-driven economy.Finally, addressing ethical and regulatory considerations is paramount. The rate at which the AI is expanding calls for fostering transparency, accountability, and responsible AI development.
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