The global economic impact of artificial intelligence is already substantial, find out more about the impacts incorporated by AI
Artificial intelligence algorithms are designed to make decisions, often using real-time data. They are unlike passive machines that are capable only of mechanical or predetermined responses. Using sensors, digital data, or remote inputs, they combine information from a variety of different sources, analyze the material instantly and act on the insights derived from those data. With massive improvements in storage systems, processing speeds, and analytic techniques, they are capable of tremendous sophistication in analysis and decision making.
The global economic impact of AI is already substantial. AI impacts economic growth in a variety of ways:
- Increasing productivity and trade opportunities: One of AI’s impacts on economic growth comes through its macroeconomic effects. For instance, when AI increases productivity growth, that productivity growth increases economic growth as well. It also increases opportunities for international trade.
- Better management of complex production units: AI helps businesses better handle complex, far-flung production units by providing a centralized management system. For example, a business can use AI to manage its warehouses more efficiently, predict consumer demand, and improve the accuracy of its quick-turnaround and delivery systems.
- Expansion of digital platforms: Trade via digital platforms is possible because of AI technology. The online auction site eBay, for example, uses AI to automate its operations.
Global cooperation is necessary to establish safety standards that reduce the catastrophic risks posed by the proliferation of autonomous machines. Furthermore, multilateral mechanisms are decisive in building a new social contract to ensure a more equitable distribution of resources in the AI economy. For that reason, the structural reconfiguration of the international system should be towards new and improved mechanisms that deepen international cooperation and integrate new technologies as a governing channel.
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