Although many commentators believe that AI has the potential to supercharge economic growth and solve our most vexing problems, such optimism underplays the risks. If anything, the technology is likely to cause profound—and costly—problems on the way to the halcyon future.
HONG KONG—Many people seem convinced that the productivity gains from AI will solve the problem of unsustainable budget deficits in advanced economies. By showering governments with higher tax revenues, the thinking goes, AI will leave even the most profligate countries with shrinking deficits.