Generative AI is a general-purpose technology, to positively transform economies: Study

Even though generative AI is a recent development, there's already strong evidence that, like the steam engine, it possesses all the characteristics are needed of a general-purpose technology, argued Andrew McAfee, the Co-Founder and Co-Director of 'MIT's Initiative on the Digital Economy' and a Principal Research Scientist at the MIT Sloan School of Management.

Since the Industrial Revolution, a handful of technologies have been powerful enough to accelerate the overall course of economic progress, the author in his report 'Economic Impact of Generative AI' said. These "general-purpose technologies" include the steam engine, the internal combustion engine, electrification, and the computer.

In the report, the author made a case that generative AI is a new general-purpose technology, and it that may spread more quickly than its predecessors.

The opinions expressed in the said report are solely those of the author

Generative AI is a recently developed type of artificial intelligence capable of producing new and original content such as text, images, videos, and audio. It accomplishes tasks by learning statistical patterns from existing data, then using those patterns to generate new outputs upon request.

"General-purpose technologies not only boost productivity and economic growth, but also contribute to many other kinds of advancement. We anticipate that generative AI will speed up scientific discovery, help innovators and engineers build better, and give creative people new ways to express themselves and move their audiences," the author wrote in his report published recently.

The author asserted that new technologies, however, bring challenges along with its benefits. Citing an example, he argued that the internal combustion engine, for example, polluted the atmosphere, made conflict more lethal, and led to massive shifts in employment as workers moved from farms to factories.

"But the long-run overall effect of tech progress has been hugely positive. In recent decades working hours have dropped while standards of living have improved around the world."

By one estimate, the author said close to 80 per cent of the jobs in the US economy could see at least 10 per cent of their tasks done twice as quickly (with no loss in quality) via the use of generative AI.

Previous general-purpose technologies like the steam engine and electrification have brought their changes over decades. However, the author anticipates that generative AI's effects will be felt more quickly due to its ease of diffusion.

"In addition to faster growth, generative AI will bring other changes. It will reduce demand for some skills, increase demand for others, and create demand for entirely new ones," it added.

"Previous general-purpose technologies have resulted in changes to the companies and countries leading the way in different industries. We believe that generative AI will be similarly powerful." (ANI)

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