How the evolution of the internet can help us Predict the future of AI and its consequences: An economic perspective

Abstract

Pornography drove the commercialization of the internet, and I suspect that pornography will drive the development of AI driven robots that look like real people and that can maximize sexual pleasure.  These robots will morph into medical doctors, coaches, etc. On the macroeconomic side, there are reasons to believe that AI can lead to a further decline in the world’s population which can be self-reinforcing and cause economic stagnation. Governments can help avoid this by counteracting any AI effects that lead to greater inequality.  On the microeconomic side, AI will make some markets more competitive and thus more efficient.  However, other markets may become monopolistic, and some AI driven monopolies will become perfect price discriminators. Again, government regulations may be able to counteract these possible pitfalls. Economies thrive best where there is trust, and to the extent that hackers and scammers use AI in unethical fashions, trust will be undercut.  Trust is also undercut when AI hallucinates, sabotages, and blackmails. Hopefully better AI codes and laws will prevent these unethical practices.