The Economic Impact of AI Growth
In 2024, both cutting-edge technology and the companies controlling it grew increasingly powerful, provoking euphoric wonderment and existential dread. Companies like Nvidia and Alphabet soared in value, fueled by expectations that artificial intelligence (AI) will become a cornerstone of modern life. While those grand visions are still far into the future, tech undeniably shaped markets, warfare, elections, climate, and daily life this year.
The So-Called Magnificent Seven
Perhaps technology’s biggest impact this year was on the global economy. The so-called Magnificent Seven—the stocks of Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—thrived in large part because of the AI boom, propelling the S&P 500 to new highs. Nvidia led the way, with its stock nearly tripling in price, spurring an arms race in AI infrastructure.
Advances and Real-World Applications
Generative AI systems advanced over the past 12 months: Google’s DeepMind achieved silver-medal results at a prestigious math competition; ChatGPT passed a Stanford-administered Turing test. Additionally, AI played a pivotal role in forecasting hurricanes and powering growing fleets of driverless cars across the globe.
A Dangerous Side to AI
A more dangerous side of AI also emerged. AI tools became central in military conflicts, proving effective in identifying targets for operations. Moreover, the algorithmic infiltration of politics raised concerns, especially with AI-generated content ramping up disinformation efforts during the 2024 elections.
Cybersecurity and Mental Health Considerations
Concerns about the implications of social media on mental health grew, linking smartphone use to rising depression among teenagers. Meanwhile, emerging technologies were seen to offer enormous opportunities, but also raised alarms about addiction and harmful online environments for young users.
Regulatory Actions and Industry Challenges
Governments responded with several lawsuits and regulatory actions aimed at ensuring tech giants are held accountable. The focus shifted towards making technology safer for users, particularly children. President Joe Biden’s and other global leaders are navigating a landscape fraught with innovation yet layered with increased scrutiny.
The Future of AI and Technology
As we look forward to the coming years, the potential of AI remains vast. The technology promises groundbreaking advancements but requires a balanced view to mitigate risks. Stakeholders now face the challenge of ensuring that AI’s benefits outweigh its growing concerns.
