ECONOMIC IMPACT OF ARTIFICIAL INTELLIGENCE

Abstract

Artificial Intelligence (AI) will transform the way we live and work, it raises the questions of how much the technology will impact businesses, clients, the work force and the economy generally. Businesses are interested about AI, in the aspect of how can they capitalize the benefits or the opportunities from using it. In other hand employees are afraid of losing their jobs, since they can be replaced by the newest technologies and robots. AI is not a new field, it started to develop over 70 years in the past by computer scientist. The new term AI, now it refers to the combination of multiple technologies in different industries. Recent concerns on technological unemployment claim that artificial intelligence disrupts the labor market which decreases employment over time. Our paper provides a theoretical explanation in the context of rapid progress of AI and its impact in economy. We incorporated AI as a factor effecting the labour force, which will lead to a decline in employment, by causing job losses, but in other hand having new industries in market. In other hand there will be an increasement of productivity and economic growth and the ability of different countries to adapt the process of the transition of the new era of AI.