What is it about?
This paper shows that AI can spur growth by replacing labor by capital, both in the production of goods and services and in the production of ideas. Our study contributes to the previous literature and presents a descriptive analysis on the impact of AI on technological development, economic growth and employment.
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Why is it important?
It is important to note that the impact of AI on economic growth is not uniform across all sectors and regions. Access to AI technologies, digital infrastructure, and AI skills can influence the extent to which countries and industries benefit from AI. Addressing ethical considerations, data privacy, and ensuring inclusive access to AI benefits are also crucial for maximizing the positive impact of AI on economic growth. In this regard, Nguyen and Doytch (2022) found a positive and significant effect of total patents on economic growth for advanced economies, but the magnitude of the effect of the technology variable weakens for emerging economies.
Perspectives
This 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 et al. (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.
Professor Mohamed Ali Trabelsi
Faculty of Economics and Management of Tunis, University of Tunis El Manar
Read the Original
This page is a summary of: The impact of artificial intelligence on economic development, Journal of Electronic Business & Digital Economics, May 2024, Emerald,
DOI: 10.1108/jebde-10-2023-0022.
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