burger menu
The economics of artificial intelligence

The economics of artificial intelligence

    Add to bookmarks

Implications for the future of work

SUMMARY

This report recommends policymakers and social partners ensure new artificial intelligence (AI) technologies maximize economic opportunities while mitigating possible effects across economies, occupations, and countries.

Although there are significant opportunities from new AI technologies for mature and emerging markets, these opportunities may further worsen income inequalities, within and across countries. Indeed, there are growing concerns that unemployment will increase and earnings fall as increases in labor productivity by new technologies result in lower labor demand. This report suggests policymakers, business leaders, and voters advocate and support businesses and employees that are transitioning into an AI-based model. Support during this transition will mitigate income inequality across low-skill and high-skill workers across economies. Mitigating income inequality is a key challenge as AI technology enters business operations.

According to this report, emerging economies can leverage AI technology for long-term growth. When firms automate production, job growth is affected through three channels. First, new technologies replace jobs and tasks currently performed by workers. Second, there is an increase in jobs and tasks necessary to use, run and supervise the new machines. Third, there is a demand due to lower prices and growth in disposable income because of higher productivity. Due to a large reduction in capital costs, which is a result of AI applications, developing countries can benefit from AI.

Ultimately, the direction and use of artificial intelligence will be decided by policymakers and customers that vote for or against damaging uses of artificial intelligence. This document provides opportunities for greater social protection in this AI age. How does this look? An effective social protection system will include maintained digital structures that are transparent and accountable, rights across occupations and geographies, and support for working transitioning to new jobs

OUTLINE

Introduction

Automation in historical perspective

The organization of production

What makes AI different

Policies

DETAILS

Overview

Researchfinder Rating
4 out of 5 stars
Title
The economics of artificial intelligence
Sub-Title
Implications for the future of work
Region
Global
Published
Oct. 17, 2018
Publisher
ILO
Author(s)
Ekkehard Ernst, Rossana Merola, Daniel Samaan
Price
FREE
Language
ENGLISH

Content

Number of Pages
41
Number of Tables
0
Number of Exhibits
4
Topics
ai
Tags
AI, AI applications, AI development, emerging markets, employment survey, ILO, policymaking
Author(s)
Ekkehard Ernst, Rossana Merola, Daniel Samaan
Methodology
This report uses a case analysis from the introduction of robots, as well as an analytical survey of changing global workforces and economic growth trends.
EVALUATION

This report contains complicated language and wordy sentences that may detract from the document’s main message: artificial technology can curb technological unemployment and global economic inequality.

Although the document is very informative, the language will detract readers. The writing is complicated, the sentences are wordy. Yet the report contains visual information that frames changing job standards and economic growth across mature and emerging markets.

Positives

  • Highly informative key findings
  • Extensive research
  • Readable visual data

Negatives

  • Wordy writing

Similiar Reports

Smart Mobility

FREE

Together We Build African Artificial Intelligence

FREE

Big Data and AI Executive Survey 2019

FREE