Some Economic Aspects of Artificial Intelligence Technologies and Their Expected Social Value

Some Economic Aspects of Artificial Intelligence Technologies and Their Expected Social Value

 

David S. Evans

Market Platform Dynamics; Berkeley Research Group, LLC

Abstract

Artificial intelligence is a general-purpose technology which will result in disruptive innovation across the economy for many decades to come. AI deserves the superlatives that are often associated with it because it can create enormous social value. That is clear from just considering health care. Early evidence indicates that AI can dramatically improve the accuracy of diagnoses, such as for breast cancer. The deployment of AI as an internet-based technology could help billions of people who lack access to essential medical services. Artificial intelligence has come into its own at an important juncture in human history. Birth rates have fallen sharply for a long time, and below replacement rates, in many parts of the world including the EU, the US, and China. The populations of countries, such as Spain, Japan, and most recently China are declining. AI technologies, which can substitute for human brains, can alleviate the social cost of declining populations. Any discussion of the importance of AI comes with “buts” and the need for laws and regulations. There is no doubt about that. The design of public policy, however, must account for the impact of too little, misguided, or too much regulation on the long-run social value of artificial intelligence.