Abstract of the article in English:

Development of Artificial Intelligence: Socioeconomic Implications, Moral Challenges and Social Justice

Plantak, M., Vargović, E., Trstenjak, J. (2023)

It is more than obvious that artificial intelligence (AI) has ceased to be fictional and has become part of our reality. In the last few decades, we have experienced significant progress in robotics and AI. The reasons for the sudden development of AI can be found in three major technological innovations: (1) a drastic reduction in costs in the IT industry, an increase in the power and memory capabilities of computers; (2) the development of the internet and other forms of digital communication, parallel innovations in digital technologies, especially those  hat enable the analysis of vast amounts of data (big data), which are essential for the development of AI tools; (3) a general decrease in capital costs, which has significantly facilitated the entry of many startup companies experimenting with new technologies into the market The proliferation of IT companies also means that there are many highly educated IT professionals needed to support further development of AI applications (Ernst et al, 2019: 3).

It is expected that future progress will be even more spectacular, and that the wider use of AI technologies will significantly reshape economic systems and societies around the world. The development of AI has also brought increased expectations, primarily due to the potential of AI technologies to increase productivity and efficiency, lower production costs, and promote further economic growth and development. Excitement around the potential increase in rates of economic growth is particularly understandable, as most developed economies are stagnant or have relatively low rates of economic growth (at best up to 2%, often closer to zero). Optimists believe that AI can dramatically improve existing social and economic environments and the way people work. However, many scientists warn of the potential long-term dangers of further AI development. The proliferation of AI technologies raises many difficult questions and increases concerns, not only in academic circles but also regarding negative impacts on individuals and societies.

AI technology is seen as a particular technology aimed at promoting the automation of various tasks and jobs, which necessarily leads to a reduction in demand for different types of workers. What sets AI apart from other automation technologies, such as industrial robots, is the potential for AI to constantly expand the scope of tasks and jobs that can be automated (Lane and SaintMartin, 2021: 20). Research shows that AI facilitates the automation of tasks in areas where it was not previously possible (Ernst et al., 2019: 6-7). AI has already surpassed some of the limitations of previous technologies. The ability of AI to solve different tasks and logical reasoning (through machine learning) means that many tasks and jobs that require high qualifications and non-routine cognitive tasks can now be automated. There are three main groups of areas where AI can have wider applications: task matching, task sorting, and process management. The potential for AI to have a significant impact and transform jobs across various sectors can be illustrated by the fact that even the field of creative arts, which is considered typically human, has many AI tools such as applications that can create music, programs that can reproduce artworks, or software that can write on its own (Ernst et al., 2019: 14).

The rapid development of artificial intelligence (AI) has brought about increased expectations of its potential to stimulate economic growth in developed countries. Linking economic growth to technological innovation is a common idea in economic literature, but economists do not always agree on the prediction of how much technological innovations actually contribute to overall economic growth and in what time period. Despite a smaller sample of empirical research, there is generally no question about the potential of AI to increase productivity and economic growth. The main debates are typically about the actual size of this contribution, i.e. how exactly further development of AI can contribute to economic growth. In the optimistic assumption that wider use of AI will bring significantly higher rates of economic growth, but the question arises whether the positive effects will outweigh any potential negative effects of AI.

Because artificial intelligence will have a significant impact on individuals, economies, and societies around the world, it is important that its development is guided in morally and socially desirable ways to reduce negative effects. Ethical challenges associated with the development of artificial intelligence include possible algorithmic bias and lack of privacy. To address these challenges, collaboration between different scientists and policy makers is necessary to create new ethical frameworks and guidelines for further development and use of AI.

Literature:

•  Ernst, E., Merola, R. in Samaan, D. (2019). Economics of Artificial Intelligence: Implications for the Future of Work. IZA Journal of Labor Policy 9:4
• Lane, M. in Saint-Martin, A. (2021). The impact of Artificial Intelligence on the labour market: What do we know so far?, OECD Social, Employment and Migration Working Papers, No. 256, OECD Publishing, Paris, https://doi.org/10.1787/7c895724-en