It is quite common to hear people expecting a big jump in GDP after we have developed trasformative AI, but after reading this post we should be more precise: it is likely that real GDP will go up, but nominal GDP could stall or fall due to the impacts of AI on employment and prices. Our societies and economic model is not built for such world (think falling government revenues or real debts increasing).
It is quite common to hear people expecting a big jump in GDP after we have developed trasformative AI, but after reading this post we should be more precise: it is likely that real GDP will go up, but nominal GDP could stall or fall due to the impacts of AI on employment and prices. Our societies and economic model is not built for such world (think falling government revenues or real debts increasing).