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Economic Impacts

⎿ ETA - 2024

What are Economic Impacts of AI?

Artificial intelligence (AI) has emerged as a transformative technological force with far-reaching economic consequences across the globe. However, the opportunities and disruptions driven by AI are not equally distributed. As AI technologies spread, a troubling "AI divide" has opened up between developed and developing nations. This growing gap threatens to exacerbate existing inequalities, especially for countries across the Global South.

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Research Leads

Joel Christoph | Jonas Kgomo

Economic Safety Nets: Restricting the Macroeconomic Disruptions of AGI Deployment

As AI and AGI progress rapidly, this project investigates potential socio-economic disruptions, focusing on:

  • Labor Market Impacts: Analyzing job losses from automation and strategies to assist displaced workers.
  • Mechanism Design: Investigating strategies to minimize negative economic consequences through effective mechanism design.
  • Economic Transition Policies: Conceptualizing safety nets like universal basic income to enable a smooth societal shift alongside AGI advancement.

Safeguarding Economies Against Automation

This section examines strategies for mitigating job losses from AI-enabled automation in developing countries, including:

  • Reskilling Programs: Governments can fund retraining initiatives to transition displaced workers into new roles.
  • Labor Protections: Implementing policies like universal basic income can support workers impacted by technological unemployment.
  • Incentivizing Job Creation: Tax credits and subsidies can encourage companies to create human-AI collaborative roles.

Talent Dynamics in the Global South

This section analyzes AI talent development strategies for developing countries like:

  • STEM Education Investments: Governments can fund technology-focused education to grow local talent.
  • Partnerships & Exchanges: Academic and industry exchanges with AI leaders can transfer knowledge.
  • Incentives for Returning Talent: Offering professional growth opportunities can retain skilled individuals.