Nobel Prize New Laureate Acemoglu: How to View the Current Development and Risks of AI?

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10-15

The 2024 Nobel Prize in Economic Sciences was awarded to Daron Acemoglu, Simon Johnson, and James A. Robinson for their profound research on “how institutions are formed and affect prosperity.”

The Importance of Institutions and Economic Prosperity

The research by these three economists emphasizes the crucial role that social institutions play in national prosperity. They point out that the lack of rule of law and exploitative institutions can severely hinder economic growth.

This perspective provides important theoretical underpinnings for policymakers, reminding them that while promoting economic development, they must also focus on improving institutions. This is not just a reflection on traditional economic growth models, but also a deep insight into the current challenges of global economic governance.

Guiding Principles for Responsible AI Development

In recent years, Acemoglu's research has focused on the impact of automation and artificial intelligence (AI) technologies on the labor market. He warns that the current trajectory of AI development may repeat historical technological errors, especially by overemphasizing automation while neglecting the creation of new tasks and the enhancement of worker capabilities. As AI technology rapidly advances, businesses should pursue cost-effectiveness while also paying attention to improving workers' productivity and capabilities.

Acemoglu's research proposes three principles to guide the healthy development of AI:

  • prioritizing the practicality of machines,

  • empowering workers and citizens,

  • and establishing better regulatory frameworks.

This not only provides guidance for businesses in their AI application decisions but also offers insights for policymakers regarding regulatory approaches in the face of technological change.

Impact of AI Development on Technology Companies

In the current economic environment, the rapid development of AI technology is closely linked to stock market dynamics. With the rise of tech stocks, market investors are optimistic about the future prospects of AI-related companies, especially with the strong growth momentum exhibited by tech giants like Apple, Microsoft, and Nvidia.

However, Acemoglu's warning deserves serious consideration from investors: if companies rely too heavily on automation and AI while neglecting the cultivation of human capital, it may lead to more severe economic inequality, thus affecting the overall stability of the market.

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Recently, the Nobel Prize winners for 2024 are being announced. According to the official Nobel Prize website, the prize amount for each Nobel Prize in 2024 is 11 million Swedish kronor (approximately $1.034 million). What can you learn from Nobel Fundation's investing?
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