AI and the Future of Society and Economy
Large language and generative AI models like ChatGPT are the equivalent of the first automobiles: fun to play with, somewhat unreliable, and maybe a little dangerous. But over time, the lesson for will be clear: Who Learns Fastest, Wins.
Section One: AI and the Evolution of Business
Artificial Intelligence (AI) is perhaps the most widely discussed new technology in history.Forecasts of its future range from imminent societal collapse to the spawning of a new paradigm for economic organisation. Some two-thirds of Americans fear its rise and roughly threein five, according to a 2023 poll, see it as a direct threat to civilisation (Edwards, 20231; Tong,20232). World Economic Forum chairman Klaus Schwab warns about humans losing control ofthe world during the Fourth Industrial Revolution (Newcomb, 20233).
The business appeal of AI is obvious. AI is about improving the accuracy of decision-making byharnessing past experience to predict the future. It is not about creating new sentient, infallible life forms like “Ultron” from Marvel Comics or “Lt. Commander Data” from Star Trek. It isabout eliminating mankind’s natural stupidity that comes from making the same mistakes overand over again without learning from the past. PricewaterhouseCoopers (PwC) estimated AItechnologies would add US$15.7 trillion to the global economy by 2030. McKinsey & Companyestimates generative AI alone will add US$4.4 trillion annually to the global economy (Chui etal., 20234; Goldman, 20235; PwC, 20176).
Entrepreneurs and innovators may seek to disrupt existing order, but most businesses are builtaround optimising existing systems. Build the same thing cheaper so you make more moneythan your competitors. Define target audiences more precisely so you can reach them moreefficiently and effectively. Identify friction points in processes so you can smooth them out andmake things happen faster and more easily. This is the ongoing struggle of businesses andmarkets since the beginning of capitalism.
Read the Full Report
This report was originally published by Chapman University's Center for Demographics and Policy. Read it in full here.
Economic Dynamism
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London and the Architecture of Creative Growth
Preserving London's creative dynamism will require humility from policymakers and a commitment to keeping the city liveable.
Do Dynamic Societies Leave Workers Behind Economically?
We need a more dynamic economy that can help workers by allowing them to move where they can best use their skills.
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Downtowns are dying, but we know how to save them
Even those who yearn to visit or live in a walkable, dense neighborhood are not going to flock to a place surrounded by a grim urban dystopia.
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AI Needs Consumer Choice, Not Bureaucratic Control
The regulatory approach treats consumer AI as a problem to be solved rather than as another service best left to a competitive, dynamic market to provide consumers with autonomy and choice.
The Start-Up Paradox: The Coming Red Shift in Innovation
Despite London's success, the future of innovation is securely in American hands for the foreseeable future.
