Operation Automation: AI’s Potential to Solve The Economic Challenges Posed by Demographics

Automation holds the key: AI-enabled automation could help solve major economic challenges posed by immigration, low fertility rates, and increasing retirements in the US and other developed countries:

• Instead of relying solely on immigration to fill economic gaps, the US government could invest heavily in automation through public-private partnerships, similar to Operation Warp Speed for COVID-19 vaccines, to accelerate AI-driven solutions and spur economic growth.
• As fertility rates decline and societies age, automation can provide efficiencies and mitigate the economic impact of shrinking populations by replacing non-existent human workers in essential roles.
• With baby boomers retiring at an unprecedented pace, automation offers a way to bridge the workforce gap, especially in roles where relying on younger generations or foreign-born workers may not be feasible.

The case for an automation policy: Despite the potential of AI and automation to address economic challenges, current discourse often frames automation as an “apocalypse” rather than a solution:

• In the past, the US government recognized the importance of encouraging automation through financial incentives, research support, technology transfer, engineering education, and standardization.
• Today, companies are ready to embrace automation, as evidenced by survey results showing the increasing productivity gains and cost-effectiveness of robotics and other technologies.
• However, political support for a concerted effort like “Operation Automation” remains uncertain, as policymakers may be focused on other priorities.

Broader implications: While the adoption of automation must be carefully timed and job displacement is inevitable, testing the hypothesis that planned automation can alleviate economic stress is crucial:

• The technology and private sector readiness exist, but political will and a coordinated policy approach are necessary to fully leverage AI and automation as solutions to immigration, fertility, and retirement challenges.
• Policymakers must weigh the potential benefits of automation against the risks of inaction and consider the long-term implications for economic growth and societal well-being.