Bias in AI investment and redefinition of workers
Recent news reports surrounding AI tend to focus on the scale of investment and the rise in stock prices. However, as you read through each section, you will find that the point to look at is other than the size of the amount. Amazon has reportedly installed more than 1 million robots, and while cybersecurity jobs in the U.S. are down 26%, jobs for AI security engineers are skyrocketing. As funds are being invested in equipment and stock prices, the nature of employment, hiring standards, and methods of medical evaluation are changing in the field. What is consistent with this highlight is the view that it is not the investment amount itself that determines whether AI will produce results, but whether people and systems are able to keep up with the changes. In each of the following sections, we will examine the basis for this based on individual cases.
ABC News & Headlines (Australian Broadcasting Corporation) reports that the sharp rise in AI-related stocks is creating bias in parts of the U.S. economy. Around the same time, The Korea Daily reported how Wall Street banks were approaching AI infrastructure investments with both growth and risk considerations. If we put these two side by side, we can see that the movement of funds is concentrated in two places. One is the stock price of AI-related companies, and the other is capital investment such as data centers. Because banks are involved in both as lenders and underwriters, they are simultaneously assuming that growth will continue and preparing for losses if it does not. What readers should look at is not whether the investment amount is large or not. The question is whether the funds are concentrated in a few areas and arranged so that if one area collapses, it will easily spread to other areas. (ABC News & Headlines, The Korea Daily)
This concentration also casts a shadow on discussions outside economics. The LI Press article, "The AI Dilemma Perpetuates an Arms Race," deals with the logic that once the race for AI begins, it becomes difficult to get off. The structure is such that each entity believes that as long as the other party continues to invest, it has no choice but to continue investing. The same holds true from the perspective of capital investment. As long as other companies and countries continue to invest, it is difficult to make the decision that only one company will slow down. If investment builds up not because of individual profit prospects but because of an inability to step back from competition, then concentration is the result of everyone aligning rather than being the result of careful planning. This contribution discusses this point within the framework of the arms race. (LI Press)
Another factor is the debate over preparations for when concentration breaks down. According to EIN Presswire, economist Schenker has published a book on post-AI recession prevention that has reached number one on Amazon. It is not possible to determine the future of the economy from the contents of books. However, the fact that books about dealing with recessions topped the list of best-sellers suggests that readers are becoming more interested in recessions, along with growth stories. ABC News & Headlines' story of skewed stock prices, The Korea Daily's look at banks, LI Press's discussion of the perpetuation of competition, and Schenker's book sales reflect the same fragility from a different perspective. The more money is tilted in one direction, the wider the impact will be if it deviates from that direction. (EIN Presswire, LI Press, ABC News & Headlines, The Korea Daily)
