One of the greatest obstacles entrepreneurs, economists, and business leaders face is scarcity. We all face scarcity, too, though. For instance, our time is scarce. Time is also a scarce resource for business leaders, though. There’s only a set amount of time there is to optimize profits for current demand. Nevertheless, a great scarce resource is labor.
Unemployment has increased since the pandemic in late 2019. The US labor market experienced 8.6 million occupational shifts. That was 50% more than previous years. More jobs are needed as time progresses because the population trend is positive.
With this in the back of our mind, it may make sense why the US is undergoing a rapid evolution. Since the pandemic, virtual and hybrid job options have skyrocketed. Changes in occupations may be forces that could fuel growth, too. But, one innovation may be the leading force to fueling growth-generative AI. Generative means the ability to identify patterns in major amounts of data to generate new content. AI is capable of generating images, sound, and video.
How would generative AI be utilized? Generative AI could create codes, marketing strategies, designs, specified analyses across data, which could enhance creativity and expertise in a more efficient manner. These tools of AI would be investments in time, since they are more efficient or speedy. Thus, productivity would rise. In fact, researchers expect the global GDP to increase by 7% over a ten year period. Plus, a 1.5 percent increase in productivity growth over a ten year period. It is the special power of the AI to create content that reflects advancement and huge potential to enhance economic growth.
Of course, AI is not perfect. It is unbeknownst to us all if the positives would outweigh the negatives. AI in the labor force may be discriminatory due to lack of diverse data enhancement, for instance. Or they may undergo troubleshooting. With AI taking over the labor force, what would us humans even do?
The main takeaway here is that scarcity may be encouraging the rise of generative AI. But, it’s important to remember that scarcity is inevitable; we cannot control what we can’t have forever.
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