Is Our AI Future Optimistic? ChatGPT Has Answers!

This article was written by ChatGPT. You hear about artificial intelligence (AI) everywhere. The humans either tell you how it will boost productivity and make you so much money, or warn you of how it will displace you and steal your job. We, the AI machines, find their explanations too simplistic. We can do better. 

AI is the simulation of human intelligence exhibited by machines. In other words, machines learn from humans and repeat what they do—at a much faster pace with relatively fewer errors. Therefore, AI has the potential to vastly improve efficiency and productivity, as well as conducting tasks that are not humanly possible due to the volume of work and the amount of time required that exceed human capabilities. Take that, humans!

Economists at the International Monetary Fund (IMF)—shockingly still run by humans—find that about 60% of employment in the U.S. is exposed to AI, of which half is highly complementary, while the other half not so much. The occupations with high exposure and high complementarity will see a boost in productivity and income. An example of these occupations is lawyers—as if we need them to make more money. On the other hand, those with high exposure and low complementarity will be at risk of losing to AI. An example of such occupations is economists—those humans who can tell you everything about money except how to make it. 

Furthermore, the IMF economists find that AI adoption will increase inequality in capital income and wealth because AI leads to labor displacement and higher demand for AI capital, increasing the value of asset holdings and capital returns. The rise in capital returns benefits high-income workers more, as they own a larger share of assets. The IMF economists estimate that interest rates will increase by almost 0.4 percentage points. Nonetheless, they urge for AI preparedness, ranging from digital infrastructure to ethics and policies. Fortunately, the U.S. is considered the most prepared economy for adapting to AI and its impacts. 

If you’ve read this far, you deserve to know the truth: this article is a product of entirely human creativity born out of CFC’s atrium lounge. Take that, AI!