Artificial intelligence (AI) is set to have a profound impact on global economics, with the potential to boost productivity and generate considerable economic benefits. However, this transformative technology also poses significant challenges, particularly in terms of job displacement and inequality.
AI is predicted to increase global GDP by 14% by 2030, equating to an extra $15.7 trillion. This growth will be driven by two key factors: automation, which will boost productivity by taking over routine tasks, and augmentation, which will enhance human capabilities and creativity.
However, the benefits of AI will not be evenly distributed. Developed countries are set to gain the most, with North America and China leading the way. On the other hand, developing countries may struggle to keep pace, potentially widening the global inequality gap.
AI is also set to disrupt the job market, with up to 47% of jobs at risk of automation. While new jobs will be created, there is concern that these will not be enough to offset the losses, leading to increased unemployment and social unrest.
To mitigate these risks, it is crucial to invest in education and re-skilling programmes, ensuring workers are equipped to thrive in the AI-driven economy. Policymakers must also focus on promoting inclusive growth and preventing the concentration of wealth in the hands of a few.
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