Artificial intelligence (AI) Impacts on Economic

Artificial intelligence is playing an increasingly important role in our lives and economy and is already affecting our world in many different ways. The global competition to reap the benefits is fierce, and world leaders – the US and Asia – have appeared on the scene.

AI is considered by many to be an engine of productivity and economic growth. It can increase the efficiency with which things are done and significantly improve the decision-making process by analyzing large amounts of data through automation. It can also stimulate the creation of new products and services, markets, and industries, which increase consumer demand and generate new revenue streams.

However, artificial intelligence can also have a very disruptive effect on the economy and society. Some warn that this could lead to the creation of super-enterprises – wealth and knowledge – which could have detrimental effects on the wider economy. It can also widen the gap between developed and developing countries, and increase the need for workers with certain skills while making others redundant; the latter trend can have far-reaching consequences for the labor market. Experts also warn about the potential to increase inequality, push down wages and shrink the tax base.

Although these concerns are still valid, there is no consensus on whether and to what extent the related risks will materialize. This is not a given, and a carefully designed policy can promote the development of AI while keeping the negative effects in check. The EU has the potential to improve its position in global competition and lead AI on a path that benefits its economy and citizens. To achieve this, it must first agree on a common strategy that will harness the strengths and enable the use of Member States’ resources in the most efficient way.

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