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Will AI become the Great Equaliser?​


  • 21 August
  • TMT
  • United States

Things will likely look worse before they look better, but in the long-term AI has tremendous potential to become the world’s Great Equaliser of opportunity and equality

AI has the potential to be the Great Equaliser​


Short-term macro analysis of AI is mostly focused on the current impact on trade, investment, spending, and inflation. Few would argue against AI being a major driving force this year for global markets and economic growth.

As the conversation shifts toward the long-term, predictions start to grow wilder. They range from an age of abundance, where AI and robotics end scarcity, to dystopian scenarios in which AI destroys human civilization as we know it.

Economists tend to gravitate toward a much less exciting but more plausible middle ground outcome. An OECD study estimates that labour productivity growth thanks to AI will be 0.4-1.3pp in countries with high AI exposure in the G7. A Dallas Fed paper has AI boosting trend growth by 0.2pp.

Rather than joining the debate over abundance, extinction, or the number of percentage points AI will add to growth, this report tackles the question of whether or not AI could become the Great Equaliser of the twenty-first century?

Although we remain in relatively early stages, we are already seeing several clear consequences of AI’s introduction to the economy.

Overall, we believe AI will have two transformative impacts on the world:
  1. AI will help people do more in less time
  2. AI will help people do things previously out of reach.
We explore below how these two factors will help bridge the gap of inequality, but also why things will likely get worse before they get better.

Will AI eventually help reduce inequality?​


Read in full here :

 


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