What is AI?
Artificial Intelligence (AI) is the ability of a computer, or a robot controlled by a computer to do tasks that are usually done by humans because they require human intelligence and discernment.
Although there is no AI that can perform the wide variety of tasks an ordinary human can do, some AI can match humans in specific tasks.
The ideal characteristic of artificial intelligence is its ability to rationalize and take actions that have the best chance of achieving a specific goal.
A subset of AI is Machine Learning (ML).
Deep Learning (DL) techniques enable this automatic learning through the absorption of huge amounts of unstructured data such as text, images, or video.
Positive effects of AI adoption
Increasing productivity by adopting AI in producing goods and services.
AI tools boosts worker productivity.
Improved consumer satisfaction.
Enhanced Accuracy
Improved Decision-Making
Continuous Learning and Adaptability
Innovation and Discovery in the field of healthcare, science, and technology.
Adverse effects of AI
Labour replacement
It reduces the labour share, employment and wages.
These adverse effects primarily affect blue-collar workers and individuals with lower levels of education.
Causing inequality among workers and possible serious negative impacts on social welfare.
AI may intensify competition and deepen the technological divide among firms.
Ethical Concerns
AI systems heavily rely on data availability and quality. Biased or incomplete data can lead to inaccurate results or reinforce existing biases in decision-making.
Vulnerable to cyber attacks and exploitation.
Lack of Transparency
Initial Investment and Maintenance Costs
Opportunities for India
India, being the most populous country, should be on the lookout as any net negative effect on employment can adversely impact the economy.
Regulation on the use of AI is not a bright solution as this would just drive investments and new opportunities away.
Thus, it would be prudent for India to focus more on education and training in AI; take advantage of the demographic dividend and new opportunities that emanate from AI.
Governments would have to step up their cyber regulations with respect to the new challenges posed by AI.
Need tax capital, as suggested by many experts, to balance the returns from capital and labour to reduce the displacement and distributional effects.
Inclusive approach
Encouraging interdisciplinary collaboration and supporting AI research.
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