How AI will reshape productivity, the labor market and wealth
I recently sat down with Remy Blaire, host of FinTech TV’s “Market Movers, the Opening Bell” to talk about the impact of artificial intelligence on humanity. Here’s a snippet from the interview:
Remy Blaire: Well, we know that there are so many hypotheses about how artificial intelligence will affect humanity, not just in our professional but personal lives. But when it comes to the global economy, how do you think it will affect productivity and the labor market?
Jeff Gitterman: Usually any technology, especially a general purpose technology like the computer or like the cell phone, will actually increase productivity. The personal computer, once it really started to take off from ’93 into the 2000s, increased productivity 1% more than productivity was being increased prior to the personal computer.
The problem is that it takes some time for these technologies to actually seep into productivity. The expectation, though, is that AI will definitely increase productivity for corporations for sure.
It’s a scary thing because the personal computer led to a 15% drop in unskilled wages, but it led to a great increase in wealth among the wealthiest of the country. And that trend will most likely continue here. The interesting thing about AI is that it will probably replace jobs and communications and IT and financial sector.
However, having access to use and being able to get access to jobs that use AI, which make you more productive, is still among the wealthiest and it’ll drive stock price because it’s very monopolistic as well.
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