Hint of the Month - February 2025

What is AI Economics?

 

 

Artificial Intelligence (AI) Economics refers to the economic implications of adopting AI technologies in various industries. This is analyzed at both the macroeconomic (meaning the implications on national GDP and growth) and microeconomic (meaning the jobs and market affecting individual livings) levels. The term emerged because of the wide spread of AI integration and its potential associated opportunities and threats. While analysis of economic impact at national level highly varies from country to another, depending on the the current GDP and technical development level and what added value AI technologies can introduce, the impacts at the individual levels could be less variant, taking in consideration the similarities of job functions of a specific position and the benefits or threats AI technology can involve, and what new jobs are added or old jobs are replaced. Understanding the economic impact and preparing for it upfront will help in capitalizing on these technologies and not missing opportunities.