News/Economy
Weekly Recap: Open-Source AI Models, UBI and Domestic Policy
The open-source AI revolution gains momentum as Meta's Llama 3.1 narrows the gap with proprietary models, signaling a strategic shift towards commoditizing foundational AI technologies to capture value in adjacent markets. Open-source AI progress and challenges: Meta's release of Llama 3.1 marks a significant milestone in open-source AI, matching the performance of closed-source models on key benchmarks and prompting questions about the future of AI development: Meta's "commoditize your complement" approach aims to make large language models (LLMs) more generic and accessible, potentially reducing the market value of core AI models while positioning Meta to profit from the surrounding ecosystem....
read Jul 25, 2024Will AI Disruption Necessitate Universal Basic Income? Experts Weigh Cost, Impact and Feasibility
The artificial intelligence revolution is raising questions about the future of work and the potential need for a universal basic income (UBI) system. While tech titans like Sam Altman claim AI will drastically reshape the economy and necessitate UBI, the feasibility and political viability of such a program remain uncertain. The cost and funding of UBI: Estimates for the total cost of a national UBI system vary widely, with some critics claiming it would cost trillions annually, while proponents argue the net cost would be a fraction of that after accounting for taxes and offsets: Simplistic calculations multiplying the U.S....
read Jul 22, 2024HBR: Remote Workers Stand to Gain (and Lose) the Most from Generative AI
Automation's historical impact on blue-collar vs. white-collar jobs: Automation has traditionally affected manufacturing and trade jobs first, while office workers were impacted later as technology advanced: The mechanized loom pushed self-employed weavers into factories, and Ford's assembly line required skilled mechanics and engineers to perform repetitive tasks. With the introduction of networked PCs, clerical and administrative workers transitioned from people-oriented roles to software-based tasks, often with lower pay, fewer skill-building opportunities, and reduced variety, human connection, and dignity. Remote work and the empowerment of white-collar workers: The Covid-19 pandemic-driven shift to remote work further empowered white-collar employees: Remote work provided...
read Jul 22, 2024OpenAI-Backed UBI Study Shows Cash Reduces Poverty, but AI Fears Remain
The UBI experiment backed by Sam Altman and OpenAI provides valuable insights into the effects of unconditional cash transfers, but should not be considered a definitive argument for basic income as a response to AI-driven unemployment. Key findings from the three-year study: The largest randomized basic income experiment in the US to date, funded by OpenAI's Sam Altman, gave 1,000 low-income recipients $1,000 per month and found mixed results: Recipients spent an average of $310 more per month, mostly on housing, food, and car expenses, but their overall incomes fell by about $125 per month due to working slightly less....
read Jul 20, 2024Opinion: UBI Is A Proactive Investment in Social Stability in the Age of AI
Universal Basic Income (UBI) is often framed as a necessary response to the job displacement caused by artificial intelligence and automation, but this perspective may be missing a crucial point. Rethinking the role of UBI: Rather than being a consequence of technological change, UBI could be a catalyst for driving it forward in a more inclusive and socially cohesive manner: By providing a secure financial foundation, UBI could encourage people to actively participate in the technological transition through reskilling, upskilling, and entrepreneurship, creating complementary services and products. In this view, UBI is a prerequisite for a successful and equitable technological...
read Jul 18, 2024AI Predicts Tipping Points, Offers Hope for Preventing Catastrophes
Researchers have developed an AI system that can predict tipping points in complex systems before they occur, a breakthrough that could have wide-ranging applications from economics to epidemiology. Key Takeaways: Tipping points, also known as critical transitions, are mathematical cliff-edges that influence the behavior of various systems, from financial markets to the spread of disease. Predicting tipping points before they happen has been a major challenge, but a new AI system has shown promising results in identifying early warning signs. How the AI System Works: The researchers trained the AI model on data from systems that have undergone critical transitions...
read Jul 9, 2024Tony Blair: Embrace AI to Boost UK Economy, Productivity and Public Services
Tony Blair is urging the UK government to fully embrace artificial intelligence to boost growth and productivity in the country. In a major speech, the former prime minister will argue that the modern technological revolution means there has never been a better time to govern. Key initiatives proposed by Blair: The former Labour leader is proposing a package of measures to fuel growth and generate savings, including: Widespread adoption of AI in both the private and public sectors A focus on preventative healthcare Implementation of digital ID Embracing technology in education Britain's strong starting position in AI: In an interview...
read Jul 7, 2024The Hidden Human Cost Powering the AI Revolution in Silicon Valley
The harrowing reality of AI's human labor unveiled: African workers power the AI revolution for meager wages Mercy and Anita, two African workers employed by outsourcing companies, exemplify the hidden human labor behind AI advancements: Mercy, a Meta content moderator in Nairobi, endures viewing disturbing images and videos for 10-hour shifts, earning just over a dollar an hour, with minimal job security and support. Anita, a data annotator in Gulu, Uganda, reviews hours of footage for an autonomous vehicle company, identifying drivers' lapses in concentration, earning around $1.16 per hour for her grueling work. The dark underbelly of AI development:...
read Jul 7, 2024Tony Blair Says AI Is Crucial for UK Economic Revival Under Starmer Government
Prime Minister Keir Starmer must embrace artificial intelligence as a transformative technology to boost economic growth, according to former Labour leader Tony Blair. Overcoming economic challenges through AI: Britain faces a difficult economic situation of high taxes, spending, and debt, but advances in AI present an exciting opportunity for the new government: AI is the only "game-changer" that can significantly improve Britain's productivity and accelerate economic growth over time. Spreading AI adoption in the private sector, encouraged by appropriate government policies, is crucial to addressing the productivity challenge. Potential benefits across sectors: AI could drive improvements and savings in various...
read Jul 2, 2024New AI-Powered Index Forecasts U.S. Economic Health Using Consumer Behavior Data
The Zeta Economic Index, a new AI-driven measure of U.S. economic health, launched Monday, aiming to provide a more comprehensive and forward-looking assessment of growth and stability by analyzing vast amounts of consumer behavioral data. Key features of the Zeta Economic Index: The index utilizes generative AI to analyze trillions of behavioral signals across eight categories, including consumer activity in automotive, dining and entertainment, financial services, health care, retail sales, technology, and travel: The AI algorithm incorporates traditional economic indicators and proprietary data from 240 million Americans to provide a 30-day advanced snapshot of the economy's direction. In addition to...
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