Artificial Intelligence
Economic Perspectives and Models

Provides essential economic tools to think about the impact of Artificial Intelligence on society, both over the short-and long term.

Wim Naudé (Author), Thomas Gries (Author), Nicola Dimitri (Author)

9781009483087, Cambridge University Press

Hardback, published 30 May 2024

378 pages
23.5 x 15.8 x 2.5 cm, 0.68 kg

'This book presents a very thorough discussion of the connections between artificial intelligence and the economy, with a refreshing forward-looking perspective. It covers fundamentals, important implications of digital technologies on societal aspects, innovation, and policy. I completely agree with the authors' statement '[big data] can better inform policy makers for a positive impact on their actions and citizens' well-being,' and strongly recommend this piece to help navigate a future enhanced by artificial intelligence.' Ricardo Vinuesa, Associate Professor at KTH Royal Institute of Technology

Is Artificial Intelligence a more significant invention than electricity? Will it result in explosive economic growth and unimaginable wealth for all, or will it cause the extinction of all humans? Artificial Intelligence: Economic Perspectives and Models provides a sober analysis of these questions from an economics perspective. It argues that to better understand the impact of AI on economic outcomes, we must fundamentally change the way we think about AI in relation to models of economic growth. It describes the progress that has been made so far and offers two ways in which current modelling can be improved: firstly, to incorporate the nature of AI as providing abilities that complement and/or substitute for labour, and secondly, to consider demand-side constraints. Outlining the decision-theory basis of both AI and economics, this book shows how this, and the incorporation of AI into economic models, can provide useful tools for safe, human-centered AI.

1. Introduction
2. Artificial Intelligence and economics: a gentle introduction
3. Artificial Intelligence and the economics of decision-making
4. Artificial Intelligence in the production factor
5. Artificial Intelligence, growth and inequality
6. Investing in Artificial Intelligence: breakthroughs and backlashes
7. Artificial Intelligence arms races as innovation contests
8. Directing Artificial Intelligence innovation and diffusion
9. Artificial Intelligence, big data and public policy
10. The future of Artificial Intelligence and implications for economics.

Subject Areas: Development economics & emerging economies [KCM]