Artificial intelligence is being designed and deployed by corporate America in ways that will disempower and displace workers and degrade the consumer experience, ultimately disappointing most investors. Yet economic history shows that it does not have to be this way.
What’s Wrong with ChatGPT? Feb 6, 2023 DARON ACEMOGLU and SIMON JOHNSON
-
I am not going to make predictions for ChatGPT except that it will have implications we do not expect while some of what we fear will not happen. I say this because it is what happened with the growth of the internet. It took us into unexpected areas while some things never came true.
-
From the article:
"AI is also poised to amplify the deleterious social effects of private equity. Already, vast fortunes can be made by buying up companies, loading them with debt while going private, and then hollowing out their workforces – all while paying high dividends to the new owners. Now, ChatGPT and other AI technologies will make it even easier to squeeze workers as much as possible through workplace surveillance, tougher working conditions, zero-hours contracts, and so forth."Can anyone expand how will private equity benefit from AI?
-
I am not going to make predictions for ChatGPT except that it will have implications we do not expect while some of what we fear will not happen. I say this because it is what happened with the growth of the internet. It took us into unexpected areas while some things never came true.
Your predictions are so vague as to be meaningless.
-
I am not going to make predictions for ChatGPT except that it will have implications we do not expect while some of what we fear will not happen. I say this because it is what happened with the growth of the internet. It took us into unexpected areas while some things never came true.
Your predictions are so vague as to be meaningless.
I think you're responding to a chatGPT output.
-
From the article:
"AI is also poised to amplify the deleterious social effects of private equity. Already, vast fortunes can be made by buying up companies, loading them with debt while going private, and then hollowing out their workforces – all while paying high dividends to the new owners. Now, ChatGPT and other AI technologies will make it even easier to squeeze workers as much as possible through workplace surveillance, tougher working conditions, zero-hours contracts, and so forth."
Can anyone expand how will private equity benefit from AI?More layoffs thanks to AI equals a higher pro forma EBITDA to service debt for the banks who finance LBOs. The higher that EBITDA figure is, the better their Fixed Charge Coverage and Funded Debt to EBITDA figures will look, and the more debt they can afford. More debt = better returns for equity.
-
This is actually a really good piece. Not the ret*rded IT'S TAKING OUR JERBS astrology you usually get from economists on AI and labor, but a thoughtful analysis grounded in the reality of how corporate America and Wall-Street work, and a reminder that there are other options.
-
What a load of poulist bs just to promote their book. Show me the model Daron.
He gave the model’s intuition in the article. Technology that is complementary to labor is socially beneficial. Automation as a replacement for humans can be potentially very harmful. You can read some of his papers for a more nuanced explanation.