The impact of artificial intelligence on economic development

Abstract

PurposeThis paper reviews recent research on the expected economic effects of developing artificial intelligence (AI) through a survey of the latest publications, in particular papers and reports issued by academics, consulting companies and think tanks.Design/methodology/approachOur paper represents a point of view on AI and its impact on the global economy. It represents a descriptive analysis of the AI phenomenon.FindingsAI represents a driver of productivity and economic growth. It can increase efficiency and significantly improve the decision-making process by analyzing large amounts of data, yet at the same time it creates equally serious risks of job market polarization, rising inequality, structural unemployment and the emergence of new undesirable industrial structures.Practical implicationsThis paper presents itself as a building block for further research by introducing the two main factors in the production function (Cobb-Douglas): labor and capital. Indeed, Zeira (1998) and Aghion, Jones and Jones (2017) suggested that AI can stimulate growth by replacing labor, which is a limited resource, with capital, an unlimited resource, both for the production of goods, services and ideas.Originality/valueOur study contributes to the previous literature and presents a descriptive analysis of the impact of AI on technological development, economic growth and employment.