Economists are debating AI's impact

Artificial Intelligence (AI) is reshaping economists' views on automation, shifting from the belief that technology universally benefits all workers. AI's rapid advancements are prompting concerns about potential job displacement and inequality. Historically, new technologies created new opportunities, but AI's capabilities in performing complex tasks raise questions about which workers might be left behind.

Economists are debating AI's impact on productivity and employment. While AI can enhance productivity, it may also lead to job polarization, benefiting high-skilled workers while displacing those in middle-skill jobs. This shift challenges the conventional narrative that technology always promotes economic inclusivity.

The discussion includes policy implications, such as the need for new education and training programs to equip workers with AI-relevant skills. Addressing the potential disparities caused by AI requires proactive measures to ensure that the benefits of technological progress are broadly shared, safeguarding against widening economic inequality.

Source: Harvard Business Review​ (Harvard Business Review)​.