How Artificial intelligence Will Impact the GLOBAL Economy Team 1 Denise Dragos – Miguel Zhindon – PJ LOUIS –– Phil Ricciardi How Artificial intelligence Will Impact the GLOBAL Economy

Economy The economy of any country is a system associated with the production, distribution, and consumption of goods and services. A country’s economy involves interactions of people, companies, and governments. These interactions involve transactions of goods and services where some form of currency is used to complete the transaction or bartering of goods and services is used to complete the transaction. Historically, there is evidence technological innovation has played a key role in the growth of the economy. Artificial intelligence will play a key role in the growth of the economy.

Management of Resources Production Consumption Resources Management of Resources Comprised of

TECHNOLOGY enables growth The wheel allowed man to transport goods in bulk by attaching the wheel to a container, which was either a wagon or a wheelbarrow. The steam engine led to steam powered boats and the train. Steam powered boats and trains enabled people to travel and transport goods. Improved transportation enables economic growth.

The computer can be found in your car, school, bank, supermarket, and even your gaming console. Artificial intelligence (AI) represents the next step in the evolution of the computer. The computer & A.I.

What is artificial intelligence? Author and physicist, Max Tegmark’s definition of intelligence is very broad as he tries to avoid limiting the definition to specific areas or even excluding concepts. Tegmark’s definition of intelligence is the ability to accomplish complex goals. Definition has not been standardized by any standards body and therefore can encompass a wide range of views regarding how technology can be used to improve processes, systems, and the lives of people. Intelligent machines are those devices that interact with their environment and adapt to changing conditions. A non-intelligent machine is a machine that operates according to specific programmed instructions.

TEGMARK’s breakdown Narrow intelligence – Ability to accomplish a narrow set of goals, for example playing a game of chess or driving a car General intelligence – Ability accomplish virtually any goal, including learning. Universal intelligence – Ability to acquire general intelligence given access to data and resources. (Human-level) Artificial General Intelligence (AGI) – Ability to accomplish any cognitive TASK at least as well as a human.

If AI keeps improving to the point at which machines have achieved AGI, what does that mean for us? Will these machines replace humans in certain jobs of jobs? Will these machines improve the lives of humans? Will these machines raise the standard of living? Makes humans wonder

Inventions – Society changes Steam engine Electric light bulb Generator Automobile Tractor X-Ray machine CT Scan Electric vehicle Train Telegraph Telephone The telephone operator The train engineer The truck driver The electrical engineer The X-Ray technician The CT Scan technician

Lost jobs The automated gasoline pump led to the creation of self-service gas stations. This resulted in the loss of hundreds of thousands of gas station attendant jobs. In the 1980s, typist jobs were eliminated when a person could type their own letters on a desktop computer. The typing pool disappeared. The elevator operator was no longer needed once push-button (automatic) operation became possible. Automobile assembly lines became More efficient, faster and used fewer people thanks to robotic welders and other assembly line robots. Computer-operated printing presses replaced the newspaper and magazine typesetter. The telephone switchboard operator was replaced by electronic switching systems that could read the action of callers dialing telephone numbers.

AI Requirements Calculations is not equal to Intelligence AI needs a LOT of data (Google Translate 10 – 15 Exabytes) [2^18 Bytes] Neural Networks Learning Algorithm Training Algorithm A quintillion bytes in decimal terms, an exabyte is a billion gigabytes. AI finds mutations Calculations is not equal to Intelligence

ECONOMIC BENEFITS of AI Technology has generally improved lives and GROWN the economy. However, when one looks at how technology has impacted the economy, it has normally been accompanied by short term job losses; followed by new job growth. Some people believe that new job growth has been adversely affected by the deployment of new technology because that new technology does not need human intervention to operate.

Economic benefits of AI Productivity increases in employees – increased output Increased output per factory installation Overall reduction in operating expenses in factories New products New services A discussion about the economic benefits of AI on the economy typically focuses on three groups of people: one is the Company and the other is the Consumer. Companies are always seeking ways to improve their bottom line by making money and reducing costs. One can say that companies will seek to implement machines that use AI for the following reasons.

The automation Impact of AI When a company implements AI technology, it typically results in job loss. One of the goals of automation has always been to improve the productivity per employee so that companies can produce more or better products with fewer employees. The use of AI has resulted in better robotic devices for manufacturing, meaning more productive factories with fewer employees. Improved sales and reduced cost AI has also brought about economic inequality due to the increase IN job losses.

Reasons why Consumers are motivated to buy products The product solves a problem. The product will make their life easier. Fear that without the product their lives will be adversely affected. Convenience is a motivator when a consumer is comparing products. The feeling of exclusivity is a motivator for buyers. Being the first or among the few to own a product is often times a motivator to own specific products.

Other important AI examples new kinds of industries such as autonomous cars. The emerging autonomous car industry has led to an entire industry of vehicle construction that combines computer technology, sensor technology, and battery technology. The computer technology used in autonomous cars has AI built within it so that the self-driving cars can make decisions about how to respond to changing driving and road conditions. Without AI there would be no autonomous car. AI has improved medical imaging diagnosis. When a doctor examines a CT scan today the systems automatically flag areas that are unusual. The AI does not replace the doctor but it does assist the doctor in analyzing results.

Transforming the economy AI improves information processing of machines. AI also improves productivity of machines and people. AI can improve the ability for business leaders to make better decisions. Economists have noted that AI can make prediction making a low cost opportunity. When viewed within the context of low cost prediction you can see the value AI brings to business decision-making and strategy development. The impact on a company’s financial health can be positive. The impact on a nation’s economy can be positive. The ability to make quickly and accurately make predications can be transformative.

How AI Transforms the Economy The power of an AI-based system is its ability to predict. The self-driving cars being tested today collect environmental information about road conditions and driving conditions. These vehicles are autonomous and are learning how to drive outside of controlled environments. To think like humans, the autonomous vehicles have to learn how to respond to unanticipated driving conditions. These autonomous vehicles have to be able to learn in order to be able to adapt to change. AI can also transform the economy in the way of decision-making. The aspect of decision-making we are referring to is “prediction”. Prediction is about filling in pieces of information that are missing. The autonomous vehicles we see tested by companies, like Uber and Google, have to think like humans so that they can react to the uncontrolled environments of city streets and highways. Google Self Driving Car uses Image processing, lasers and ultrasonic signals Prediction takes information you have and uses it to generate information you do not have; this is how business decisions are often made.

Prediction is the result of Learning AI systems improves the ability to Predict. If a machine can learn, it should be able to assist humans to better predict the outcome of events. The ability for an AI system to help a human predict can be used for developing business strategies and strategies to address overall national economic issues. AI can mitigate the risks of making decisions. AI needs lots of data to learn.

Devices That Benefit from AI - Machine Learning Interactive Voice Response systems - requires the ability to recognize speech. Can be used for applications such as control system. Image recognition devices – can be used by security systems to recognize specific individuals. Virtual digital assistants – Google Assistant is an example of a system that assists a mobile phone user to access information and the phone’s capabilities. Social Media Pattern Analysis – this is used by companies today who use social media to drive more business into their companies.

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