Top economists and AI leaders warn of ‘unprecedented transformation’
A recent joint statement signed by nearly 200 AI and economic experts emphasizes the urgent need for policymakers, technologists, and economists to prepare for the profound economic transformations expected from artificial intelligence over the next decade. The document warns that AI could become substantially more powerful, potentially leading to unprecedented economic shifts comparable to the Industrial revolution, but occurring over a much shorter period.Concerns include the displacement of jobs and societal impacts.
Signatories like former Google CEO Eric Schmidt and Harvard economist Jason Furman highlight that the outcomes depend heavily on societal responses and governance, emphasizing the importance of intentional, collective decisions rather than relying solely on market forces. They advocate for establishing incentives, regulations, and institutions to ensure AI benefits society, enhances living standards, and prevents leaving most citizens behind.
The current U.S. administration and bipartisan lawmakers are actively working on legislation to regulate AI and protect minors online. While some experts contend that AI may not cause critically important job losses, the consensus is that proactive measures are necessary to navigate AI’s risks and rewards effectively. Prominent figures, including Nobel laureates Daron Acemoglu and Ben Bernanke, underscore the importance of early readiness to harness AI’s potential benefits responsibly.
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AI and economic experts signed a joint statement calling for action from economists, policymakers, and technology leaders to prepare for an unprecedented transformation of the economy from artificial intelligence.
The statement, with almost 200 signatories, said that “AI may become radically more powerful over the next 10 years.”
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It said that AI could drive an “unprecedented transformation of our economy, larger than the Industrial Revolution, but unfolding over a vastly shorter time frame,” possibly leading to the displacement of workers.
“We don’t know what AI will deliver, and we certainly don’t know what superintelligence will bring, but we know that it is coming fast,” former Google CEO Eric Schmidt, one of the signatories, said in a LinkedIn post.
Other signatories include former President Obama’s chief economist and current Harvard professor, Jason Furman, Anthropic cofounder Jack Clark, and top AI researcher Yoshua Bengio.
The statement said that AI could also generate major gains in living standards and increases in wealth due to productivity.
“We must be intentional and make collective, democratic choices, rather than letting market forces play out and risking leaving most citizens behind,” Bengio posted on X.
MIT economics professor David Autor, one of the signatories, said the results don’t depend on the technology itself, but rather on the response from society and the government.
“They depend on the societal institutions and policies we build to share the gains and redress the costs,” Autor told the Wall Street Journal. “The United States does not have a glorious history of doing either. We are currently unprepared.
“Economists, policymakers and technology leaders must act now to understand the economics of transformative AI and to build the incentives, guardrails, and institutions needed to steer AI in a direction that complements humans and benefits society,” the statement reads.
The current administration has made a concerted effort to address the AI revolution.
Members of the House of Representatives have also introduced bipartisan legislation, including the Great American AI Act and regulations to protect children from these technologies, such as the Kids Internet and Digital Safety Act and the SAFE KIDS Act.
Although the risks and benefits are contingent on future policies, some economists believe there isn’t sufficient evidence that AI will lead to a net loss of jobs.
“It is possible that [AI] is reducing hiring in a few specific occupations and age groups,” Furman told the WSJ. “But even that evidence is weak, and the aggregate magnitude of any labor market impact is small to zero.”
Among the signatories urging preparation and prevention are Nobel Prize winners, including MIT economics professor Daron Acemoglu and former Federal Reserve Chairman Ben Bernanke.
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