Dissecting the Paradox of Progress: The Socioeconomic Implications of Artificial Intelligence

Abstract

The rapid ascent of artificial intelligence (AI) and other general-purpose technologies has marked the advent of the fourth industrial revolution, triggering substantial transformations in business practices and productivity potential. While these emerging technologies offer numerous benefits, they also present a range of threats, concerns, and challenges. This chapter aims to investigate the dark side of the fourth industrial revolution, based on the available literature. One major concern revolves around employment, encompassing the potential rise in unemployment rates and the emergence of structural unemployment. The set of skills needed for the changing nature of work is significantly different, thus there is a need for rapid reskilling and deskilling to ensure the future employability of the existing workforce. Furthermore, high dependence on machines might lead to major ethical concerns, including, but not limited to, breaches of privacy and discrimination. More so, high unemployment might lead to further social and income inequalities, relegating many to the lower class and decreasing their purchasing power, while placing few in the upper class.