The NBB published a research article in the Economic Review of 2023 entitled „The economic consequences of artificial intelligence: an overview“, exploring the impact of AI on various industries and its potential drawbacks.
The article highlights that AI is transforming industries such as healthcare, finance, transportation, and manufacturing. AI is being used in healthcare to improve patient outcomes, detect diseases, and develop personalized treatment plans. In finance, AI is being used to detect fraud, manage risk, and improve customer service. In transportation, AI is being used to improve traffic flow, reduce accidents, and optimize routes. In manufacturing, AI is being used to improve efficiency, reduce waste, and enhance product quality.
However, the article also underlines some potential drawbacks of AI. One of the main concerns is privacy. AI systems can be used to track individuals‘ movements or preferences, potentially violating their privacy. The article notes that data retention is a challenge due to cheap storage, and data can be repurposed for uses other than the originally intended one due to nonrivalry. Additionally, data created by one person can contain information about others due to externalities.
Another concern is the impact of AI on productivity growth. The article notes that despite the widespread use of AI, there is not yet an observable improvement in productivity growth. This is similar to Solow’s paradox, which states that „you can see the computer age everywhere but in the productivity statistics.“
The article also discusses the need for infrastructure and talent to support the development and implementation of AI. Infrastructure such as high-speed internet and cloud computing is necessary to support the large amounts of data generated by AI systems. Additionally, there is a need for talent with the necessary skills to develop and implement AI systems.
Finally, the article covers the need for a regulatory framework to address the potential risks associated with AI. The article notes that AI is a rapidly developing field, and regulations must keep pace with technological advancements to ensure that AI is used ethically and responsibly.
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Date Published: 2023-06-01
Regulatory Framework: not applicable
Regulatory Type: information
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