NYU Stern School of Business Professor Emeritus & Hudson Bay Capital Senior Advisor Nouriel Roubini Talks US to Set Rules of Global Technological Order
Jan 31, 2025
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Nouriel Roubini, NYU Stern School of Business Professor Emeritus and Senior Advisor at Hudson Bay Capital, shares insights on the evolving landscape of AI and its economic implications. He argues that DeepSeek's AI disruptions could positively impact U.S. markets. Roubini highlights the stark realities of job displacement due to AI and anticipates that the U.S. will dictate global tech regulations. The discussion also touches on the geopolitical rivalry with China and the need for effective governance to navigate these changes.
Nouriel Roubini highlights that AI advancements like DeepSeek can positively impact the US economy and global stock markets in the medium term.
The podcast delves into the ethical concerns and job displacement risks posed by AI, emphasizing the need for society to adapt and possibly consider universal basic income.
Deep dives
The Impact of Meta's Open Source AI on Collaboration
Meta's open source AI model, Llama, is designed to enhance collaboration between universities and radiologists, thereby helping to identify errors in medical imaging more effectively. This initiative emphasizes the democratization of technology, suggesting that such advancements should be accessible to all, not just a selective few. The partnership aims to leverage collective knowledge in the field to bolster accuracy and efficiency in radiology, which can ultimately lead to better patient outcomes. By allowing shared access to AI tools, it fosters a collaborative environment for innovation in healthcare.
AI Advancements and Global Economic Effects
The recent breakthroughs in AI, particularly with DeepSeek, have led to optimistic projections regarding global economic growth. Analysts suggest that these advancements may contribute to significant improvements in productivity, not only in China but worldwide, leading to potential growth increases in the U.S. stock market. Although initial reactions to these developments were overly cautious, a deeper analysis reveals the likelihood of enhanced economic activity as AI becomes more integrated across industries. This integration can create a ripple effect, stimulating growth and innovation in various sectors by fostering competition and increased efficiency.
Philosophical and Social Implications of AI Adoption
The adoption of AI raises profound philosophical questions regarding the future of work and human purpose as automation continues to expand. While AI can drive productivity and economic growth, it also poses risks such as job displacement and ethical dilemmas around human values. There is a growing concern about how society will adapt to these changes, particularly in terms of maintaining individual fulfillment and dignity in an increasingly automated world. As such discussions unfold, the potential necessity for universal basic income (UBI) emerges as one approach to address the economic impacts of widespread job substitution and changes in workforce dynamics.
NYU Stern School of Business Professor Emeritus & Hudson Bay Capital Senior Advisor Nouriel Roubini explains why he sees the disruption DeepSeek brings to AI as positive for the US economy and global stock markets over the medium term. Roubini also discusses the expectations for “massive amounts of job displacement” from AI and why the US will set the global rules on technology. Roubini spoke with Bloomberg's Jonathan Ferro and Annmarie Hordern.