Exploring AI's Economic Impact: Insights from Global Experts Panel

The Facts -

  • AI is transforming productivity and economic growth, impacting jobs globally.
  • Adoption rates and infrastructure shape AI benefits across countries.
  • US-China AI rivalry affects economic and geopolitical landscapes.


The rapid advancement of artificial intelligence (AI) is poised to reshape numerous sectors, influencing productivity, economic growth, employment, and living standards globally. However, the benefits of these advancements are expected to vary significantly among different nations. The extent to which economies adopt AI technology—and their access to computing infrastructure, necessary skills, investment, and international resources—will determine AI's global impact.

Experts Anton Korinek, Filiz Unsal, and Martin Chorzempa recently engaged in a discussion exploring the economic transformation driven by AI and its potential consequences for nations, workers, and businesses.

Anton Korinek detailed possible economic scenarios resulting from transformative AI, which range from slight enhancements in productivity to potential explosive growth. He emphasized the importance for policymakers to prepare for a broad spectrum of outcomes rather than concentrating solely on a singular forecast.

Filiz Unsal emphasized that a country's capacity to harness AI benefits hinges on domestic and international factors. While countries that are slower in AI adoption might gain from cost-effective imports of AI-powered goods and services, sustaining a competitive edge in global markets will necessitate the domestic integration of AI, alongside adequate computing capabilities and data-center infrastructure.

Martin Chorzempa discussed the competitive dynamics of AI between the US and China, focusing on the economic and geopolitical ramifications. He noted that China, with numerous AI labs trailing closely behind US capabilities, is increasingly adopting AI models, even within the United States. The competitive pressure from Chinese AI models propels US labs to enhance their price competitiveness and capability frontier, potentially shifting the distribution of benefits toward adopters.

A conversation with Anna Stansbury followed the presentations.

MODERATOR

Anna Stansbury
Nonresident Senior Fellow, PIIE

SPEAKERS

Martin Chorzempa
Dennis Weatherstone Senior Fellow, PIIE

Anton Korinek
Nonresident Senior Fellow, PIIE; Head of Transformative AI Economic Studies, Anthropic Institute

Filiz Unsal
Deputy Director of the Policy and Research Branch, Economics Department, Organization for Economic Cooperation and Development (OECD)

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