Generative AI's Economic Impact Revealed in New Report

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Generative AI is shaping up to be a game-changer for the economy, much like the steam engine or electrification were in their day. It's what economists call a "general-purpose technology," meaning it has the muscle to boost overall economic growth and shake things up in a big way. A recent report by Andrew McAfee, our first Technology & Society Visiting Fellow, dives into how generative AI could impact productivity, jobs, and the skills folks need to thrive in an AI-driven world. You can read his overview here or grab the full report if you're into the nitty-gritty. So, what's the big deal with generative AI? Well, it's estimated that around 80% of jobs in the U.S. could have at least 10% of their tasks done twice as fast, without any dip in quality, thanks to this tech. That's a pretty big deal! Unlike past technologies that took decades to make their mark, generative AI is spreading like wildfire thanks to the internet and its user-friendly, natural language interface. We're already seeing some serious productivity boosts, and as more people and businesses figure out how to use it even better, those gains are only going to grow. But it's not just about working faster. Generative AI is going to shake up the job market too. Some skills will be less in demand, others more so, and entirely new skills will pop up. Don't worry too much about mass unemployment though. History shows that when these big technologies come along, they create a lot of new jobs, even if they're in areas we can't quite predict yet. Since 1940, over 85% of U.S. job growth has been in brand-new types of work. With generative AI spreading so quickly, we'll need to get serious about reskilling fast. The cool thing is, generative AI can actually help with that. It's got this knack for helping people learn how to use it better, and it's especially good at boosting the performance of newbies, which could help tackle wage inequality. Just like with past game-changing technologies, generative AI is likely to shift which companies and countries are leading the charge in different industries. It's an exciting time, but also a time to stay sharp and ready to adapt.

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