Creative destruction and artificial intelligence: The transformation of industries during the sixth wave

Abstract

Artificial intelligence (AI) is considered to be a key driver in the emerging sixth wave of technological advancement, one that has profound economic implications. The emergence of AI has led to significant changes in a wide range of different sectors, the reshaping of existing sectors, and the disruption of traditional business practices. This transformative power aligns with Schumpeter's theory of creative destruction, in which innovations are seen to cause older technologies and business models to become obsolete, leading to significant economic shifts. The role of AI in the sixth wave is crucial not only because of its immediate applications in the area of automation and data processing but also because of its broader capacity to drive a new cycle of innovation and economic renewal. This ongoing cycle, driven by creative destruction, challenges businesses to adapt and evolve, ultimately contributing to a more robust and dynamic economy. In this article, the authors explore the ways in which AI promotes innovation and its effect on economic expansion, using Schumpeter's theory of creative destruction.