Technological Progress and Artificial Intelligence

Abstract

Abstract Advances in artificial intelligence and automation have the potential to be labor-saving and to increase inequality and poverty around the globe. They also give rise to winner-takes-all dynamics that advantage highly skilled individuals and countries that are at the forefront of technological progress. This chapter analyzes the economic forces behind these developments and delineate economic policies to mitigate the adverse effects while leveraging the potential gains from technological advances. It also proposes domestic policy measures and reforms to the global system of governance that make the benefits of advances in artificial intelligence more inclusive.