In an era of technological advancement, it is crucial to question who benefits from these innovations. This inquiry is particularly relevant in the context of automation and artificial intelligence (AI), according to renowned economists Professor Simon Johnson and Professor Daron Acemoglu from MIT. In their newly released book, “Power and Progress: Our 1000-Year Struggle Over Technology and Prosperity,” the authors delve into the historical distribution of benefits from technological breakthroughs and explore the potential impact of AI in today’s society, both economically and politically.
Drawing parallels between the past and present, Johnson and Acemoglu highlight that technology has long played a role in shaping prosperity. They argue that although advancements in agriculture and building technology during the Medieval period contributed to increased wealth and the construction of cathedrals, it was also a time marked by significant inequality. The economic gains were primarily captured by the elites, while peasants saw no substantial increase in wealth, enduring chronic malnutrition and a short life expectancy of around 25 years.
Who wins
Looking ahead to 2023, Johnson and Acemoglu assert that the issue of who benefits from technology remains paramount. They contend that the current trajectory of AI is worrisome, with some governments using it as a tool for social control, benefiting only a select few. The authors argue that this path undermines both economic prosperity and democratic values, creating a vicious cycle in which the two problems reinforce each other.
Acemoglu and Johnson propose a return to shared prosperity and urge society to harness technology for the benefit of all. They emphasize that the key lies in making machines useful to people rather than displacing them. They point out that historical progress was achieved through automation that created new tasks for people and was accompanied by countervailing power within society.
However, the authors caution against the current state of AI, which they believe is excessively focused on replicating human intelligence. They argue that many AI programs fall short when it comes to mimicking the complexity of human thinking.
Human thought
While AI tools may have their strengths, such as specialized applications in chess or image recognition, they often lack the agility, adaptability, and social interaction capabilities inherent in human intelligence. Acemoglu and Johnson argue that AI should aim to enhance human abilities rather than replacing them, favoring technologies that generate marginal productivity gains and encourage firms to hire more workers.
Beyond economic considerations, the authors raise concerns about the political implications of AI. They highlight the rise of surveillance technologies, facial recognition tools, and extensive data collection, which have the potential to erode democratic participation and concentrate power in the hands of a few.
Acemoglu and Johnson propose a range of policy responses to address these issues, including data ownership rights for internet users, tax reform favoring employment over automation, and government support for diverse high-tech research directions. They also advocate for repealing Section 230 of the 1996 Communications Decency Act to enable regulation of online platforms and suggest implementing a digital advertising tax to limit the spread of algorithm-driven misinformation.
Broaden the discussion
In promoting their ideas, the authors aim to broaden the public discussion on AI beyond industry leaders and foster a reevaluation of human agency, social priorities, and economic possibilities. They emphasize the importance of deliberating not just on the brilliance of new technologies, but also on their impact on people and society.
Johnson concludes that these discussions are essential, emphasizing that technology is not inherently deterministic but subject to human control. By engaging in thoughtful dialogue and actively shaping technology’s outcomes, society can channel its potential for better results and improved well-being.
