IMPACT OF ARTIFICIAL INTELLIGENCE ON THE GLOBAL ECONOMY : ANALYSIS OF EFFECTS AND CONSEQUENCES

Abstract

This paper studies the growing influence of artificial intelligence (AI) on the global economy. AI is a simulation of human intelligence by machines that has emerged as a solution to the technological shortcomings of different sectors of the economy. AI subfields, including machine learning, computer vision, and knowledge-based systems, are essential to improve the performance, capability, efficiency, and reliability of these sectors. In recent months, there has been a significant upsurge in the adoption of AI, particularly due to the availability of AI software like ChatGPT and Bard. While the current developments of AI are already quite profound, significant advancements are yet to come. This research paper proposes that AI will gradually become the dominant force driving human activities, transforming human life into a virtual world. This AI takeover will influence all aspects of life and business, from sources of income to modes of entertainment, transportation, and communication. This research paper aims to provide a comprehensive account of how AI currently affects and may affect the global economy. It explores the diverse sectors impacted by AI, including manufacturing, healthcare, and finance, along with the labour market and the changes AI brings to employment opportunities and skill development. This study also discusses the challenges and ethical concerns that may come up with the upsurge of AI.