Individuals with higher intelligence tend to have better outcomes in every walk of life.
Further, human intelligence is the lever that we have used for millennia to create the world we live in today.
If intelligence hadn't been applied in these various areas, we would still be living in primitive conditions, struggling to survive through basic farming and dwelling in mud huts.
AI allows us to significantly augment human intelligence, resulting in substantial enhancements across intelligence-related outcomes.
Why is there panic?
Claims abound that AI poses threats of societal devastation, unemployment, exacerbated inequality, and facilitation of nefarious activities.
Some say, "AI will cause mass unemployment because they can think like people."
Is this true?
No, such a scenario is highly unlikely to occur. On the contrary, if AI is permitted to develop and increase across the economy, it has the potential to generate the most significant and enduring economic expansion ever witnessed, accompanied by remarkable job and wage growth, completely contradicting the prevailing fears.
And here's why.
One common mistake made by those who believe that automation leads to job loss is the Lump Of Labor Fallacy.
The incorrect notion of the law of fallacy is that there is a fixed amount of work in the economy at any given time and that it can only be done by machines or people. Some people believe that if machines do the work, no work will be left for humans. However, this is a fallacy.
When we use technology to make things, we can produce more stuff without using as much stuff to do it. It's like getting more things for your money!
The result is lower prices for goods and services.
When prices of goods and services decrease, we save money, allowing us to have more money for purchasing other things.
When more people want stuff, companies make more stuff, which means they start making new things and hiring people. It's a good thing for folks who lost jobs to machines before.
The result is a larger economy with higher material prosperity, more industries, more products, and more jobs.
But the good news doesn't stop there.
We also get higher wages.
How much employees get paid depends on how much value they bring to the company. This is what determines their salary.
Do you know what's interesting? People working in tech companies get much more done than in regular old businesses. It could be all the cool technology and tools they have.
When a worker starts kicking butt and getting more done, their boss might toss a little extra cash their way, or they might decide to bounce and find a job that pays better.
The result is that technology introduced into an industry generally increases the number of jobs and raises wages.
To summarize, technology empowers people to be more productive.
As wages increase, the cost of things we buy and use regularly decreases. It's like getting a discount on things you already love!
The economy gets a boost when more jobs and businesses are popping up. It's all about creating more opportunities for people to work and make money.
For, as Milton Friedman observed, "Human wants, and needs are endless" – we always want more than we have.
When technology is infused, we will get closer to delivering everything everyone could conceivably want but never there. And that is why the fact remains that technology cannot and will not destroy jobs.
Single Biggest Risk: China
One major concern regarding AI is the possibility of China becoming the dominant force in the global AI industry.
Stay informed, Stay ahead and stay inspired with MBA Rendezvous.