Artificial intelligence (AI) has transitioned from being science fiction to a burgeoning industry, exciting Venture Capitalists across the world. AI is currently poised to revolutionize many industries, and researchers have begun to examine its impact on the economy. Some early studies show increased productivity in the workplace and the potential for economic gains.

While its applications are still new, preliminary evidence suggests that AI improves efficiency in workplaces. The studyThe Impact of AI on Developer Productivity: Evidence from GitHub Copilot, examined how AI assistance would impact programmers’ work. The study found that programmers getting assistance from AI finished their task 55.8 percent faster than the control group which did not have AI assistance and performed with a 7 percent higher accuracy rate compared to the control group.

The increase in speed indicates how AI can be used in a workplace to boost efficiency without compromising the accuracy of work produced. This improvement in productivity has been found outside of programming as well, with AI used in medical imaging to help doctors to better diagnose their patients. AI as it exists now is proving to be a labor-optimizing technology more than anything else, and like previous innovations, it will likely lead to significant economic benefits.

When trying to determine the impact of AI on the economy some researchers have been using models to predict the potential effects. A second studyNotes from the AI Frontier: Modeling the Impact of AI on the World Economy, examined the potential impact of widespread AI adoption on companies, and conversely, the potential consequences for companies should they not adopt AI tools. That study predicted that by 2030, AI would increase Gross Domestic Product compared to today.

Read the full Economic Standard article here.

Trey Price is a technology policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information, visit https://www.theamericanconsumer.org/ or follow us on Twitter @ConsumerPal.

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