Concerns about artificial intelligence investments are growing, particularly as estimates reveal that a significant portion of the funding may yield little to no returns. MIT economist Daron Acemoglu has voiced his skepticism regarding the anticipated economic transformations posed by AI technologies.
Experts Warn of Investment Waste
In an interview with Bloomberg, Acemoglu stated, ‘A lot of money is going to get wasted.’ He emphasized that only about 5% of jobs are likely to be significantly impacted by AI over the next decade. This highlights fears that substantial investments may not translate into the productivity gains that many investors expect.
Future Scenarios for AI Investments
Acemoglu outlined three potential future scenarios surrounding AI investments:
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The most optimistic scenario involves a calming of the AI hype, with some applications proving beneficial.
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The AI frenzy could lead to a crash in technology stocks if expectations aren’t met, akin to the dot-com bubble.
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Investments in AI technologies may continue to rise, resulting in widespread job replacement, before leading companies to rehire workers as the limitations of AI become apparent.
‘When the hype gets intensified, the fall is unlikely to be soft,’ warned Acemoglu, who expressed concern that without reliable implementation of AI models, the technology may fail to replace human tasks effectively.
Overall, Acemoglu encourages discretion in AI investment, suggesting that while the potential is vast, the realities of the current technology should temper expectations.