Softer expectations needed for AI-led growth – BIS paper
Large-scale automation could weaken profit incentive that drove technological progress, economist says
Expectations of artificial intelligence-driven growth may need to be tempered because of the likelihood of demand bottlenecks, according to research from the Bank for International Settlements.
In a working paper published on October 12, BIS principal economist Phurichai Rungcharoenkitkul examines demand bottlenecks as a potential constraint on the effects of transformative AI. “The large-scale automation enabled… could erode the consumption base and weaken the profit incentive that has spurred
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