Generative AI is a general-purpose technology to positively transform economies: Study

Even though generic AI is a recent development, there is already strong evidence that, like the Steam Engine, it has all the characteristics needed for a general-purpose technology, said Andrew McAfee, co-founder and co-director of MIT’s Initiative. argued. on the Digital Economy’ and a Principal Research Scientist at the MIT Sloan School of Management.

The authors say in their report ‘Economic Impact of Generative AI’ that since the Industrial Revolution, a handful of technologies have been powerful enough to accelerate the overall course of economic progress. These “general purpose technologies” include the steam engine, the internal combustion engine, electrification, and computers.

In the report, the author claimed that generative AI is a new general-purpose technology, and it may spread more quickly than its predecessors.

The opinions expressed in the said report are solely those of the author

Generative AI is a recently developed type of artificial intelligence that is capable of generating new and original content such as text, images, video and audio. It accomplishes tasks by learning statistical patterns from existing data, then using those patterns to generate new outputs upon request.

“General purpose technologies not only boost productivity and economic growth, but also contribute to many other types of progress. We hope that generic AI will accelerate scientific discovery, helping innovators and engineers create better , and will give creative people new ways to express themselves and inspire their audiences,” the authors wrote in their recently published report.

The author stressed that, however, new technologies bring their benefits as well as challenges. To cite one example, he argued that the internal combustion engine, for example, polluted the atmosphere, made conflict more deadly, and led to massive changes in employment as workers moved from farms to factories.

“But the long-term overall impact of technological progress has been extremely positive. Working hours have decreased in recent decades while living standards have improved around the world.”

According to an estimate, the author said that about 80 percent of the jobs in the US economy could complete at least 10 percent of their tasks twice as fast (with no loss in quality) through the use of generic AI.

Previous general purpose technologies such as the steam engine and electrification have brought their own changes over the decades. However, the author estimates that the effects of generative AI will be felt more quickly due to the ease of dissemination.

“In addition to rapid growth, generic AI will bring other changes. It will reduce demand for some skills, increase demand for others, and create demand for entirely new ones,” it said.

“Previous general purpose technologies have resulted in transformation of leading companies and countries across a variety of industries. We believe generative AI will be similarly powerful.” (ANI)

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