- AI could ultimately become a major disruptor in the job market
- High interest rates are the biggest short-term risk for companies
- It takes time for businesses to adapt to new technologies such as AI. The impact will not necessarily be seen in the near future.
Mark Zandy, chief economist at Moody’s Analytics, said artificial intelligence presents both challenges and opportunities for workers and employees.
“If we can harness the power of artificial intelligence at work, we will be even more productive. We can mandate higher wages and companies should benefit from the fact that AI is making everyone more productive.” ‘, said Zandi.
But while companies are leveraging this technology to save labor costs, some employees fear that their jobs are at risk.
Zandi suggested such concerns may be premature. Advances in AI have the potential to change many business practices, but the technology is still in its early stages.
“If you look to other innovative technologies, using history as a guide, it will certainly take time for those technologies to be incorporated into business practices,” the economist explained. “Usually it happens over a period of years, sometimes decades.”
He also said AI will be deployed in different ways in different sectors of the economy.
“As is often the case with any major technology change, this is what happens. It’s like stirring a pot to create winners and losers,” Zandi told CNBC.
Watch the video above for the full interview.
