Evolution of AI may have the greatest impact on the economies of developing countries

By Meetin 'the world

It is said that AI (Artificial Intelligence), which has made remarkable evolution in the 2000's, will greatly change the way that society is to be used and the situation of the economy in the future. Only state-of-the-art technology seems to think that it is developed countries that are affected by that, but it is the developing countries that the economy is growing at the stage of growth from now on Bloomberg shows that view.

Artificial Intelligence Threatens Jobs in Developing World - Bloomberg
https://www.bloomberg.com/view/articles/2018-09-17/artificial-intelligence-threatens-jobs-in-developing-world

China and India, where the economy has developed over the past several decades, have been growing based on different growth models. China has made use of the blue collar layer as the foundation of economic development by making use of cheap labor by the huge population. After that, China has increased the wealth of the country by producing more technology-intensive products than electronic products. In India, the role of a business outsourcing business such as call center business by utilizing technicians with excellent brains and English skills, and the white collar of the brain system such as software testing have raised the economy of the country .

Both countries have continued economic growth by taking advantage of their respective strengths, but it is believed that AI will take time to wait for it. At the same time that AI dramatically accelerates factory automation, it is possible that AI will take away the work such as customer service and telemarketing from people's hands. In addition, AI can further improve the quality of service by accumulating data and learning progress. In addition, AI does not request pay raise by himself, nor does it take a holiday in the holiday season, there is nothing like resting with poor physical condition.

The biggest merit that developing countries can appeal to developed countries is "low cost", but when AI will absorb that merit, many companies in developed countries will be able to do business outsourcing It can be lost to home country. If that happens, in developing countries the work will be lost, the domestic economy will decelerate and the negative situation that the unemployment rate will rise will be caused.

As a result, only developed countries will benefit from AI technology. Although it is not an exaggeration to say that the quality of AI depends on the amount of data, AI with higher quality gathers more data, thereby further improving the quality of AI for more users A positive spiral occurs that acquires data and gathers data. Although the world's most advanced AI technology is seen as being in the United States and China, PwC , a consulting firm, will generate 15.7 trillion dollars (about 1800 trillion yen) of wealth generated by AI worldwide by 2030 We predict that America and China will monopolize 70% of them.

In that situation, the thing that emerging economies need to survive is to break away from the traditional growth model that China, India, and even postwar Japan followed. As AI continues to develop, China is supposed to be the last country to produce industrial products and get out of poverty, and the world now needs to find new growth models as soon as possible.

What is believed to be a major means of doing so is expansion of the service in terms of software that can not be realized unless it is "people". No matter how much AI or robot evolves, services that provide "hospitality" such as Japanese inns and UK B & Bs (bed and breakfast) and comfort are the tasks that human beings are most proud of It is done. Industries such as sightseeing and cultural tourism, hot line call center, elderly care, etc. are considered to be persistently surviving fields even in the AI ​​era.

In addition, developing countries need to find their respective places in the AI ​​world. Robots running on factory lines can do the same work anywhere in the world, but each country has its own unique situation. For example, even if consumer finance algorithms based on consumer credit research reports in the United States were developed, it would not be expected to work well with Ethiopia as it is. The existence of this "gap" is a major foothold for developing countries to find their whereabouts.

By IFPRI-IMAGES

In order to overcome this gap, governments in developing countries need to devote their budget to AI education for outstanding students based on the goal of "nurturing their own companies that utilize AI". We need to quickly find young students who excel in mathematics and engineering, provide advanced education and have education at the world's best academic institutions.

None of these efforts is easy. It is far more difficult to nurture one million companies for small businesses than to construct 100 huge factories, providing funds to top-class students is a difficult decision given the country's economy in malnutrition I will. However, if developing countries can successfully balance them, AI is likely to have the opportunity to improve and grow the economy without being plagued by exploitative black companies and environmental degradation .

And the powerful countries such as the United States and China are able to reach out to those developing countries. Providing education and training means gives more value than financial support. Bloomberg concludes that if profit is to be shared, if AI is not a global burden but brings wealth, Bloomberg concludes.