Must-Read: Jason Furman: Is This Time Different? The Opportunities and Challenges of Artificial Intelligence
Must-Read: Super-smart–naturally intelligent, one might say…
: Is This Time Different? The Opportunities and Challenges of Artificial Intelligence: “I see little reason to believe that the economic impact of AI will be very different from previous technological advances…
…But unlike many of the optimists, I do not find that similarity fully comforting, as technological advances in recent decades have brought tremendous benefits but have also contributed to increasing inequality and falling labor force participation. However, as I will emphasize this morning, the effects of technological change on the workforce are mediated by a wide set of institutions, and as such, policy choices will have a major impact on actual outcomes. AI does not call for a completely new paradigm for economic policy—for example, as advocated by proponents of replacing the existing social safety net with a universal basic income (UBI) —but instead reinforces many of the steps we should already be taking to make sure that growth is shared more broadly. But before turning to concerns about some of the possible side effects from AI, I want to start with the biggest worry I have about it: that we do not have enough of AI. Our first, second and third reactions to just about any innovation should be to cheer it—and ask how we get more of it, the issue I will discuss first in my remarks. But I will then discuss the potential labor market downsides of AI. Finally, I will conclude with the role of public policy in addressing these issues…