Impact and Investment in AI Technologies

The chapter delves into the impact of technological innovations on creating new occupations and the significant investment in AI, analyzing the economic theory behind automation and the challenges of replacing low-cost labor with expensive AI solutions. It discusses the skepticism and exaggerated expectations surrounding AI investments, comparing the current environment to previous technological advancements and highlighting the need for a realistic understanding of AI's limitations. The chapter also addresses the necessity for big tech companies to engage in the AI arms race, despite uncertain returns, and the investment outlook for investors focused on AI in the near, medium, and long term.