Don’t Smash the Looms: Five Reasons Why Artificial Intelligence is Nothing to Fear

Cliff Moyce, Head of the Finance Practice at DataArt, contributes a bylined article to C Suite, where he outlines five reasons not to fear artificial intelligence (AI).

“Understandable though it was, so incorrect was Luddite thinking that economists coined the phrase ‘Luddite Fallacy’. The Luddites believed that technological advancement generates inevitable structural unemployment and is consequently injurious to the macro-economy. In contrast, it is argued that if a technological innovation results in a reduction of necessary labour inputs in a given sector, then the industry-wide cost of production falls. This, in turn, lowers the competitive price and increases the equilibrium supply point which, theoretically, will require an increase in aggregate labour inputs (Jerome, 1934)."

"One mistake that people make when debating AI is to assume that it does work currently being done by humans. By and large, it does not. Instead, it does work that people cannot do at all, or cannot do easily, or cannot do sufficiently well in a reasonable timescale. Or it does work that is being done by machines already, but it does it much better than existing machines…An example of one machine driven process being replaced by a better (AI) machine is robo-advisory investment management services for retail customers."

"AI is an additive technology that opens up a whole new world of possibility to government, science, medicine, technology, logistics, education, and commerce. Through AI techniques of natural language processing, machine learning, deep learning, and cognitive computing, people and organisations can better automate processes, gain non-intuitive insights into data, and manufacture ‘better things better’. Non-intuitive insights from data can generate and validate new economic, business and investment strategies. In capital and commodity markets, the more efficient use of capital afforded by using AI tools can provide huge stimuli to economies through increased capital for investment."

"That is the point – AI allows us the ability to do the things we always wanted to do, plus a load more things we haven’t yet considered. That is how jobs are created. Already, AI has created many more jobs than it has ever replaced.”

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