Economics of the Fourth Industrial Revolution: Internet, AI and Blockchain
Nov 11, 2020
auto_awesome
Nicholas Johnson and Dr Brendan Markey-Towler discuss the impact of the Fourth Industrial Revolution on the economy, focusing on AI, blockchain, and the internet. They explore AI disrupting sectors, blockchain reshaping governance, and the need for adaptable skills in the evolving economy.
The Fourth Industrial Revolution combines internet, AI, and blockchain, reshaping the economy and daily life.
AI can outperform humans in predictive tasks with accessible data but requires human judgment in ambiguous situations.
Blockchain decentralizes governance, enabling automatic enforcement and addressing coordination challenges in various sectors.
Deep dives
Defining Industrial Revolutions
Industrial revolutions are historical periods marked by breakthrough technologies that significantly impact economic institutions and marketplaces, leading to increased production possibilities and higher standards of living. These revolutions transcend industries and fundamentally change core operational processes, enabling societies to produce more efficiently and improve living standards. Industrial revolutions involve general purpose technologies that revolutionize multiple production processes simultaneously, creating new markets and fundamentally altering economic structures.
Industrial Revolution Phases and Technological Convergence
The evolution of industrial revolutions includes distinct phases like the First Industrial Revolution, which replaced animal power with machines, the Second connected the world through transportation and communication improvements, and the Third focused on digital technology advancement. From 2005 onwards, the pace of technological change accelerated significantly with the integration of the internet and mobile technology, marked by the emergence of the Fourth Industrial Revolution. General purpose technologies like the internet, artificial intelligence, and blockchain converge to drive this revolution, reshaping production, consumption patterns, and creating new markets.
AI Impact on Jobs and Tasks
Artificial intelligence (AI) transforms tasks and jobs based on data accessibility and reliability. In situations with accessible and reliable data, AI outperforms humans in predictive tasks, leading to potential job displacement. However, in scenarios with inaccessible data, human judgment prevails, augmenting AI's predictive abilities. The interplay between AI and human labor varies depending on the substitutability of tasks, with routine-focused jobs and narrow skill sets at higher risk of automation, while roles requiring advanced problem-solving and a broad skill set are less susceptible.
The Future of Truck Drivers in the Age of AI
Truck drivers face challenges as automation advances, with debates on liability in accidents and the need for ethical oversight. Human judgment remains crucial in ambiguous situations, suggesting a role as ethical safeguards rather than mere operators. While AI excels in structured tasks, human intervention is essential for unpredictable scenarios, underscoring the evolving role of truck drivers in a transforming labor market.
Blockchain's Role in Governance and Contract Enforcement
Blockchain technology revolutionizes governance by decentralizing control, enabling enforcement of contracts and rules without central authority. It addresses coordination challenges in institutions and offers solutions for unintentional and intentional deviations. From digital identities to contract enforcement, blockchain applications extend to diverse sectors like energy and healthcare, reshaping interactions and promoting automatic enforcement with privacy and identity verification benefits.
The Fourth Industrial Revolution, involving the convergence of the internet, AI, and blockchain, will radically change our economy and our lives, according to the authors of a new book published by Routledge. Economics Explored host Gene Tunny speaks with authors Nicholas Johnson, CEO of Economists Without Borders, and Dr Brendan Markey-Towler, and Associate of EWB.
Where you can buy the book Economics of the Fourth Industrial Revolution: Internet, Artificial Intelligence and Blockchain: