Top economist Steve Hanke told us why he doubts AI will be the job destroyer many expect
Economist Steve Hanke argues that AI is unlikely to cause mass job displacement because the high costs of energy, water, and hardware make human labor more economically viable. He criticizes AI optimists for ignoring the resource-intensive reality of scaling these technologies.
Why it matters
This perspective challenges the prevailing narrative that AI will inevitably lead to widespread unemployment, focusing instead on economic constraints.
Steve Hanke says AI costs too much to be a major threat to jobs. Steve Hanke Steve Hanke says AI won't be the game changer many people imagine as it's "incredibly costly." The leading economist said the water, power, and microchips needed to power AI limit its potential. Hanke said that many companies won't replace people with AI because human labor will be cheaper. The idea that artificial intelligence will be free to use and virtually costless to provide is delusional and dumb, Steve Hanke says . "This belief is based on a disconnect from reality, as well as a good dose of idiotic economic reasoning," the professor of applied economics at Johns Hopkins University told Business Insider by email. "AI is incredibly costly; it is very resource intensive," Hanke continued. "It requires huge amounts of water, power, and physical capital" like graphics chips, he added.
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