Impacts of Artificial Intelligence (AI) on Society

Adapted from: www.islcollective.com

Abstract

This research examines the emergence of artificial intelligence (AI) in society and enumerates
the benefits and drawbacks of the new, impending technological era in terms of economics and
potential social effects. It will cover how businesses of all sizes can boost their profits by utilising
AI and machine learning to enhance output without worrying about human mistake. It will also
cover how AI may have negative social effects, such as job losses and harm to the global economy
and globalisation. However, until then, since the future of AI is highly unpredictable, we can only
make educated estimates on the subject. In the end, it will be decided that the future for AI is
unquestionably bright and that it is doubtful that research and development for AI will halt
anytime soon. As of now, we can also draw the conclusion that significant technological
advancement will usher in a new era of technology, with all of its benefits bringing with them a
unique set of challenges to be solved, much like earlier discoveries. As members of the scientific
community, we therefore need to be knowledgeable about this subject in order to prepare for and
observe the beginning of a new era in human history.

Introduction

Since the late 20th century, artificial intelligence has been a hot topic. Whether it be in science
fiction or the gradual development of robots from various international laboratories. But along
with the excitement came doubt, as the issue of whether using AI can ultimately lead to a
sustainable, better developed future, or a dystopian one, has been contested by many. Since this
progress will usher in a new period of technical advancement similar to the industrial revolutions,
the topic is difficult yet serious, as it should be. Additionally, every revolution has negative effects
and issues that must be addressed. There are just two categories of "artificial intelligence":
There are two primary types of artificial intelligence definitions. Systems that behave and think
like humans are present on the one hand. These are intelligent machines capable of executing
tasks like decision-making, problem-solving, and learning. Success is determined by these
definitions' faithfulness to human performance. On the other hand, other systems assess success
using an ideal definition of intelligence, according to which a system is intelligent if it acts in the
best way conceivable in light of the information at hand. These systems employ computational
models that enable perception, reasoning, and action (van de Gevel, Noussair, 2013). [1]

Given the concept, it is clear why some people are concerned about the introduction of AI into
society. It is imperative that we start planning for the future at this time, with government leaders
publicly discussing the issue and billionaires like Elon Musk saying "people should be genuinely
concerned about it" (Agrawal, Gans, Goldfarb, 2018)2. This study will concentrate on the
advantages of integrating AI systems into our culture as well as the potential negative effects.
The paper will come to a conclusion at the end regarding the perspectives we can have on the
subject of artificial intelligence and its effects on the economy and, consequently, society at large.

Artificial intelligence's beneficial effects on society and the economy

AI has a plethora of potential applications in the fields of medicine, education, and, of course,
business. When running a business, the objective is to maximise profits while using the fewest
products and resources possible, especially when those resources are scarce. Many businesses
may use AI to reduce costs on other forms of capital, primarily human capital, to achieve this
goal. The business could become more productive and efficient as a result of this substitution.

Illustrates how many businesses and industries want to use and incorporate new technologies, such as AI, over the coming
few years. It demonstrates that all industries will be compelled to increase their automation, but particularly the telecom,
financial, and healthcare industries. Adapted from Ransbotham, S., Kiron, D., Gerbert, & Reeves (2017, September 6).
AI's Impact on Business Transformation.

Additionally, AI can give businesses a competitive edge because "87% of current AI adopters
stated they were using or contemplating utilising AI for sales forecasting and for boosting email
marketing" (Columbus, 2018)

Due to the necessity to differentiate their goods and services from those offered by their
competitors, monopolistic businesses can benefit from this competitive advantage. Since AI
generally enhances income and efficiency, as indicated above, all types of markets and enterprises
can profit from its usage. This is because all market structures can gain from its use.

Additionally, the use of AI may lead to an increase in GDP growth, as China is predicted to
experience a 26% increase in GDP (roughly $7 trillion in GDP) and North America to experience
a 14.5% increase (roughly $3.7 trillion in GDP). This will likely have a positive impact on the
stock markets as higher GDP will increase corporate earnings and stock prices. The improved
economy will arise from the increase in GDP, which will show significant economic growth and
efficiency. 4

The GDP growth in relation to AI for various regions and countries. China will benefit most from AI, demonstrating China's
hegemony over the AI sector. excerpted from Probst, L., Pedersen, B., Lefebvre, and L. Dakkak-Arnoux (2018).

Artificial intelligence's detrimental consequences on society and the economy

Due to differences in technological development, some markets or nations may not be ready for
the use of AI. The majority of first-world nations with solid foundations may be ready to invest
in and begin using AI, whilst developing nations in poverty may catch up with its use much later
because they cannot afford or have the capacity to employ anything significantly high-tech.

Furthermore, since AI is viewed as a better substitute, there is concern that hundreds of thousands
of employment may be eliminated in the future. Numerous studies have shown that as newer,
better technology was introduced into the workplace, jobs were lost; an example would be how
automated manufacturing may readily replace the requirement for human capital. If people are
required to work in a business, they will need to learn how to use modern technology since
employers will demand that they have tech-savvy employees. The majority of workers will likely
be at a disadvantage because there may not be a large supply of people with such abilities.

One of the primary unfavourable externalities of AI manufacturing may be this negative effect.
Additionally, due to increased digitalization, physical stores may close when AI is used.
However, as local businesses and bookstores have been losing customers and appeal due to
digitalization and less expensive alternatives offered by larger corporations, this idea is not new.

Displaying the need for particular talents in

the workforce. from Columbus, L. (2018,
January 19).
Charts That Will Shift How You See the
Development of Artificial Intelligence
Retrieved from Myarticles

Because a robot with a processor as intelligent as the human brain would require at least 10
megawatts to operate, which is "enough energy to produce enough energy for a small
hydroelectric plant," there is also concern that the cost of creating and maintaining artificial
intelligence will be extremely high (Melnikov, 2019b)

This energy need for a single AI is incredibly high and, at least for now, unfeasible. This study,
along with numerous others on energy consumption by AI, shows that, in order for artificial
intelligence to grow, the world must reconsider how it produces energy and how to make it
function without depleting civilization. Finally, there is concern that artificial intelligence (AI)
will be used to promote digital nationalism and militarization because the benefits that these
systems produce also confer power on the nation that develops it most effectively. Countries like
China and Russia have already taken moves toward achieving this aim (China is creating weapons
while Russia is passing laws), which causes other nations like the United States to worry about
their position and where it stands. Globalization (in terms of technology and AI) is a challenging
future because of these unfavourable aspects of the development and application of AI.
 Conclusion

The potential for AI to advance is promising. As a result of the advancement of automated

learning processes, the "application of AI in production is anticipated to increase over time"
(European Union, 2019), as the need for a society to advance and innovate is inevitable. The
future of AI is still unclear, though. Though we can speculate about its future, we are unable to
foretell what new technology will lead to. The only things we can be certain of are that when AI
is used, it will have both beneficial and negative effects on society and the economy as a whole,
and that, as with previous revolutionary inventions, the introduction of new technology will usher
humanity into a new era. We can also draw the conclusion that AI still has a ways to go because
it will take a lot of effort, time, and money to complete such a massive project and make it even
remotely practical in the future years. The best thing we can do as individuals right now is to
continue learning about issues related to artificial intelligence and machine learning in order to
stay current on this fascinating but challenging subject.

Task 1

1. What do you think Elon Musk means by ‘’people should be genuinely concerned about it’’?
2. A business could become more productive and efficient as a result of using AI. How?
3. How can people survive the advancement of automated manufacturing?
4. Using AI to promote militarization can be detrimental to society. Explain how?
5. Do you think Robots will eventually take over the world? What is a more likely problem
humans will face in the future if Artificial Intelligence becomes the next big thing?

Task 2

Use the vocabulary words and phrases below to fill in the blanks.

At the mercy broad automation trial and error labor figure out
skyrocket break down seeking revenge

1. Artificial Intelligence is slowly making progress, but it could soon ______________ into a new
trend in technology.
2. Many computer scientists are now trying to ___________________ how computers can learn
to think like humans.
3. Many movies have been produced about robots _____________ _____________ on humanity.
4. People today are ____________________ of the rising technology of Artificial Intelligence.
5. There are many different branches of Artificial Intelligence. It is a _______________ field.
6. We learn many lessons from our mistakes. We all learn by ________________________.
7. You can ____________________ Artificial Intelligence into 6 major branches: robotics, vision
systems, natural language processing (NLP), learning systems, neural networks and expert
systems.
8. _______________ in manufacturing refers to using technology and machines to perform specific
tasks without the need for humans to intervene so as to increase efficiency, productivity, and accuracy
in the production process, reducing manual ____________ and minimizing the risk of human error.