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I’d be stunned if Andreessen’s extremely educated viewers truly believes the lump of labor fallacy, however he goes forward and dismantles it anyway, introducing—as if it had been new to his readers—the idea of productiveness development. He argues that when know-how makes corporations extra productive, they move the financial savings on to their prospects within the type of decrease costs, which leaves folks with extra money to purchase extra issues, which will increase demand, which will increase manufacturing, in a phenomenal self-sustaining virtuous cycle of development. Higher nonetheless, as a result of know-how makes staff extra productive, their employers pay them extra, so that they have much more to spend, so development will get double-juiced.
There are lots of issues flawed with this argument. When corporations turn out to be extra productive, they don’t move financial savings on to prospects until they’re pressured to by competitors or regulation. Competitors and regulation are weak in lots of locations and plenty of industries, particularly the place corporations are rising bigger and extra dominant—assume big-box shops in cities the place native shops are shutting down. (And it’s not like Andreessen is unaware of this. His “It’s time to construct” publish rails in opposition to “forces that maintain again market-based competitors” corresponding to oligopolies and regulatory seize.)
Furthermore, massive corporations are extra seemingly than smaller ones each to have the technical assets to implement AI and to see a significant profit from doing so—AI, in any case, is most helpful when there are massive quantities of knowledge for it to crunch. So AI could even scale back competitors, and enrich the house owners of the businesses that use it with out decreasing costs for his or her prospects.
Then, whereas know-how could make corporations extra productive, it solely typically makes particular person staff extra productive (so-called marginal productiveness). Different occasions, it simply permits corporations to automate a part of the work and make use of fewer folks. Daron Acemoglu and Simon Johnson’s e book Power and Progress, a protracted however invaluable information to understanding precisely how know-how has traditionally affected jobs, calls this “so-so automation.”
For instance, take grocery store self-checkout kiosks. These don’t make the remaining checkout employees extra productive, nor do they assist the grocery store get extra consumers or promote extra items. They merely enable it to let go of some employees. Loads of technological advances can enhance marginal productiveness, however—the e book argues—whether or not they do will depend on how corporations select to implement them. Some makes use of enhance staff’ capabilities; others, like so-so automation, solely enhance the general backside line. And an organization typically chooses the previous provided that its staff, or the legislation, pressure it to. (Hear Acemoglu talk about this with me on our podcast Have a Good Future.)
The actual concern about AI and jobs, which Andreessen solely ignores, is that whereas lots of people will lose work shortly, new sorts of jobs—in new industries and markets created by AI—will take longer to emerge, and for a lot of staff, reskilling shall be laborious or out of attain. And this, too, has occurred with each main technological upheaval thus far.
When the Wealthy Get Richer
One other factor Andreessen would really like you to consider is that AI gained’t result in “crippling inequality.” As soon as once more, that is one thing of a straw man—inequality doesn’t should be crippling to be worse than it’s immediately. Oddly, Andreessen kinda shoots down his personal argument right here. He says that know-how doesn’t result in inequality as a result of the inventor of a know-how has an incentive to make it accessible to as many individuals as doable. Because the “traditional instance” he cites Elon Musk’s scheme for turning Teslas from a luxurious marque right into a mass-market automobile—which, he notes, made Musk “the richest man on the earth.”
But as Musk was turning into the richest man on the earth by taking the Tesla to the plenty, and plenty of different applied sciences have additionally gone mainstream, the previous 30 years have seen a slow but steady rise in revenue inequality within the US. Someway, this doesn’t appear to be an argument in opposition to know-how fomenting inequality.
The Good Stuff
We now come to the wise issues in Andreessen’s opus. Andreessen is right when he dismisses the notion {that a} superintelligent AI will destroy humanity. He identifies this as simply the most recent iteration of a long-lived cultural meme about human creations run amok (Prometheus, the golem, Frankenstein), and he factors out that the concept AI may even determine to kill us all is a “class error”—it assumes AI has a thoughts of its personal. Moderately, he says, AI “is math—code—computer systems, constructed by folks, owned by folks, utilized by folks, managed by folks.”
That is completely true, a welcome antidote to the apocalyptic warnings of the likes of Eliezer Yudkowsky—and completely at odds with Andreessen’s aforementioned declare that giving everybody an “AI coach” will make the world mechanically higher. As I’ve already mentioned: If folks construct, personal, use, and management AI, they’ll do with it precisely what they need to do, and that might embrace frying the planet to a crisp.
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