AI as the next GPT: a political-economy perspective

Abstract

The article discusses the economic and societal implications of artificial intelligence (AI) as the next general-purpose technology (GPT), similar to prior transformative technologies that brought both benefits and disruptions. It highlights the risk of mass job displacement and the rise of AI-based human-replacing innovations (HRIs), which could result in a large class of structurally unemployed individuals. The authors emphasize the need for proactive strategies to address these societal and economic shifts. These may include a revamped education system focused on developing AI-relevant skills, the professionalization of service occupations through higher standards and academic requirements, and considering AI investments that encourage human-enhancing innovations (HEIs), which leverage AI to enhance human capabilities rather than replace them completely. – AI-generated abstract.