Implications of Artificial Intelligence on Economic Growth (Essay Sample)

Implications of Artificial Intelligence on Economic Growth
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Evolution of technology is happening now and then with significant innovations in almost all sectors of the economy. Need to make production process efficient, save time, reduce cost and improve the quality of output are the primary drivers of this evolution. Traditional production methods were inefficient and in many occasions led to the production of output which is substandard and consume a lot of time. To solve all these drawbacks, all the sectors of the economy involve experts so as to use creative methods that will ensure customer satisfaction in addition to promoting economic growth. In U.S. and other countries, investment in technology is increasing periodically so as to meet the demands. The technological development depends on some economic, political and social factors. The integration of these factors can improve or deter automation of production processes. Development of computer science promotes the Artificial Intelligence, which brings a lot of automation in the many sectors of the economy.
After the implementation of Artificial Intelligence (AI) objectives, there will be profound societal effects as it has potential benefits education, law, and science and business sectors. However, it will also pose some risks to these sectors (Smith, 2014). Various development in computer science is giving birth to a class of machines which perform tasks requiring judgment, perception and reasoning which previously was the role of humans. The Artificial Intelligence as other technologies supports automation and rise in productivity.
Artificial intelligence is substantially changing our ways of thinking about work and design of the organizations in private and public sector. In the public sector, there will be a lot of automation of the processes of the corporations. That will eliminate the use of manual labor in various departments. The private sector will also have a lot of impacts as there is the elimination of human labor tom pave the way for the machines and equipment that will ease the work and save costs. That will mean retrenchment in the major industries of the economy and minimal job opportunities to the graduates. The increase in unemployment will result in low standards of living of the people and slow economic growth. Immoralities and malpractices such as fraud and corruption are likely to rise due to the low job opportunities and idleness which adversely affect the welfare of the society.
On aggregate, these developments are likely are likely to change the composition of the workforce in the economy. That is mainly to activities that have a high degree of structure and predictability. For example, consider the improvements of the predictive analytics in the security sector. In this case, there is the transformation of everything from the number of security officers available in a place of the number of the analyst in existence to control the systems. Where Artificial Intelligence it is at work people can get more personalized services in technical sectors of the economy such as the gaming, analytics, and education. For such reason, the public agencies should find ways of adopting these technologies to transform the next generation of workforce. That will change the design and structure of the private companies.
Many developing and developed nations are fully focusing on improvement of Artificial Intelligence to the next level. Policies and plans to do so are almost in every government institutions and the private sector. Their aim is to create a technological breakthrough that will cement their position of being the hub of technology. However, these efforts are hindering the focus on pressing problems for example lack of access to clean, sustainable energy source and social issues. That means people fail to handle issues that create more problems to society and use the capital and resources that only benefit the high-class individuals. In fact, there is a lot of pressure to the less developed countries to embrace technology their production so as to reach the standards of other developed nations. Thus the government channel substantial amount of resources in the area. That makes them forget financing projects that will improve human welfare in the society. That includes poverty eradication policies and improvement of the education sector.
Artificial Intelligence has on many circumstances created competition directly to the human race. Its design has programs that perform work which initially was possible by engineers, doctors, and professional accountants. The technology is creating a barrier for the involvement of this personnel in their activities. It is also very hurting that activities previously done by highly trained staff are now the responsibility of employees in the information Technology department. That trend if it continues will create a lot of problems to the future generation in future as research on these areas will reduce and the people concentrate only on the automation aspect. Government and global institutions should know this trend and seek policies that will create a balance between education and technology empowerment.
Milestones in the robot technology promise some benefits to the economy. They will perform the activities that human beings once did giving them an opportunity to engage in other tasks other than work. Individuals will come up with other means of survival other than just working. That will be important in raising the living standards and making them eradicate poverty. Manufacturers will be the primary beneficiary.
Another significant contribution of the Artificial Intelligence to the economy is making the activities of employees enjoyable and more fruitful. Consider an organization where an employee uses manual methods of processing documents so as to maintain transaction records. That task will make him have monotony and boredom at work which at times undermines the quality of output. However if there is involvement of technological advances such as robot such adverse occurrence will reduce. The employee will only have duties of control and controlling the robot in their activities.
Technological advancement in Artificial Intelligence especially the robots have a lot of impact in industries involved in the production. These organizations are extensively using this technology to eliminate the manpower to make the manufacturing process faster and inexpensive. They also ensure that quality in the final product remains constant in the production process. The machines can work without tiresome, and this enhances continuous production. The technology is also applicable to technical professionals such as medicine and engineering. The robot handles chemicals which might have a lot of impact on the health of workers. They also help in checking the progress of processes which at times may be difficult for humans due to the conditions such as high temperatures and humid conditions. In areas such as transport, they help in testing vehicles and airplanes before they are ready for use by human beings. In auditing, there is software that helps in analyzing the financial statements and in making a final judgment.
In the economy that heavily invests in the technology more so in Artificial Intelligence financial projection is very positive. The government of such economies comes up with strategies that will ensure that the economy benefits from technology advancement.
That is important mainly because the country lacks the unemployment income individuals generate from their job. Most of the work which initially involved manpower are now automated. As such the income mainly comes from capital investment, transfer payments and sale of materials. That is to compensate the lack of employment earnings. Individuals mostly use gains from the stock exchange to sustain their standards of living.
The government distributes income primarily from transfer payments independently of work. There is a reversal of policies involving financial control so as to ensure equitable distribution of revenues to all people irrespective of whether or not they are working. Transfer payment in developing countries act as an important source of income for the economy, and it is one of the target areas. There are policies to increase tax so as to raise more revenue for purposes of investing in activities that will reduce human suffering in the society. The government also encourages savings in social security, welfare payments and reduction of taxes. The impact of this step is to promote the individuals financially. The growth of businesses will occur, and this will reduce importation of products. As a result, there is the achievement of balance in foreign exchange rate.
Artificial Intelligence, especially in robots, improves the speed of work in all sectors of the industry. As such the government comes up with methods of generating additional income for subsistence and civilization. They help in creating good and efficient corporate governance which makes the industry competitive in the economy. That raises the stock value of the organization making investors generate a lot of gains in the industry. As such many people invest in corporate shares so as to get more income.
That will mean wider ownership of the automated enterprises. There is also the formation of new capital by use of the automation process to attract investors and discourage concentration of owners only in one country as the organization comes global. The government is using the tax and credit services to accumulate stock ownership in corporations. Such policies will make it possible for the economy not to have a lot of inflation which adversely affect the performance of the private and public sectors. Institutions for example in the United States such as the National Mutual Fund help in using credit from Fed...