Artificial Intelligence: Financial and Economic aspects of a “World Changer Technology”

Introduction

Artificial Intelligence needs no introduction. It is the latest and most advanced technological tool, one that poses questions and raises concerns about the future evolution of the job market, the potential need for a universal basic income, and its profound impact on how we think, study, and live.  Regardless of how predominant AI will be in the future, what is undoubtedly evident is that AI is increasingly becoming a “world changer technology”. 

This insight is a brief summary of our research paper published in the research section. The interested reader can freely access the research by subscribing to ThePlatform. 

Growth opportunities and risks associated with the development of AI technologies

  • The year-to-date performance of the AI industry, as reflected in financial indexes such as The Nasdaq Global Artificial Intelligence and Big Data Index, suggests a positive trajectory for future growth. The market evolution is attributed to heightened efficiency and improved quality in AI applications, with AI systems now surpassing human capabilities in language and image recognition.
  • The transformative potential of AI in the scientific domain could spur public investments. Notably, the National Recovery and Resilience Plan in Italy allocates funds to enhance the country’s competitiveness in digital technologies.
  • However, we emphasize the potential dangers associated with the misuse or abuse of AI tools and underscore the importance of international regulatory oversight.

Market Dynamics and Future Scenarios

  • Examining the economic backdrop, the paper highlights challenges for startups amid tight credit conditions, posing potential hindrances to growth. Economic theories present conflicting perspectives, emphasizing the advantages of market power in supporting innovation, while also acknowledging the Innovator’s Dilemma faced by large incumbent firms.
  • Examining the economic backdrop, the paper highlights challenges for startups amid tight credit conditions, posing potential hindrances to growth. Economic theories present conflicting perspectives, emphasizing the advantages of market power in supporting innovation, while also acknowledging the Innovator’s Dilemma faced by large incumbent firms.
  • An alternative viewpoint considers the growth of generative AI companies as a response to the tech sector’s shift towards maximizing efficiency amidst challenging economic conditions.

Conclusion

Despite the current challenges in the AI market, there are compelling reasons to be optimistic about the long-term potential of AI companies. The rapid growth and increasing investment in certain segments of the AI industry demonstrate the immense value and transformative power of AI technologies. While the short-term economic outlook may pose challenges, the fundamental promise of AI remains strong.

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