5 ways AI will change the economy
Read my 5 predictions to prepare yourself for the future
#1 The next AI boom
The current boom in AI is driven by generative AI (particularly following the success of ChatGPT which holds the record as the fastest growing app in history).
However, there are risks associated with AI, including potential misinformation and bias in AI-generated outputs, privacy concerns and intellectual property issues. These issues have highlighted the importance of “responsible AI”, which is the concept that AI should be used in a safe and responsible manner.
So as AI becomes more mainstream, I believe that the next boom in AI will be led by innovations and services that promote responsible AI, such as:
- ‘Fair AI’ — AI systems that can self-adjust for biases.
- ‘Pro-privacy AI’ — AI systems that preserve privacy (look up ‘federated learning’)
- ‘Explainable AI’ — AI systems that can show their working.
In fact, a responsible AI boom might come very soon. On 30 March 2023, Elon Musk, Bill Gates and Steve Wozniak have recently signed a letter (along with tens of thousands of other tech experts) urging research labs to pause training of powerful AI models for 6 months, and instead work together on developing responsible AI standards. This letter might be the first of many sparks to initiate the above boom.
#2 New economy structure
In economic theory, the four traditional factors of production: land, labour, capital and enterprise.
AI will create new ecosystems (and even mini economies) where:
- Data is the new land (i.e. the resource the fuels AI);
- Code is the new labour (i.e. the input that drives AI behaviour);
- Content is the new capital (i.e. AI creates content which can then generate value, including money); and
- Prompt engineering is the new enterprise (see next prediction).
This means more jobs and opportunities for those with a digital presence.
#3 Prompting = enterprise
“Prompt engineering” refers to the process of creating and refining text prompts (and model configurations) to obtain an optimal output from a generative AI system (such as ChatGPT or DALL-E).
Knowing how to craft good prompts will empower you to leverage AI as your co-pilot or assistant (and become your own manager). It’s the new language of AI.
Prompt engineering will be the new enterprise (the skill that combines other factors of production). A whole new industry and talent pool around prompt engineering will rise.
If you want to learn prompt engineering, here are some useful starting points:
- Prompt Engineering Guide (an online resource for all the tips and tricks around prompts).
- PromptHero (an online community for unpicking and sharing secrets of prompts).
#4 Shifts in labour market
As AI automates the menial boring tasks, manual labour will shift towards more supervisory and higher critical-thinking work:
- Blue collar work to evolve into supervisory/managerial roles.
- White collar work to evolve into increasingly domain-specialist and strategic work.
- Entry level roles to require some level of prompt engineering.
Generative AI will also expand the gig economy, especially in the content and creatives sector. Having multiple side careers or hustles might eventually become the norm.
#5 Education will change
AI education will become part of regular school education. Students will learn to use AI responsibly to complete tasks from a young age.
Homework and tests will change to focus on prompt engineering, critical thinking and management more than knowledge and memorization.
Academic competition will start to focus on who is the better learner, rather than who is the better student.
What do you think of my predictions? Happy to discuss below!
