Technology, Disruption and the Future of the Economy
Disruption is one of the mantras of the digitally enhanced, current-stage capitalism. Entrepreneurs are not merely supposed to come up with better business plans, they are to be disrupters, shaking the hidebound foundations of 20th century commerce. With billions glued to their screens across the globe, the disruption is part of the sizzle that gets people talking and consumers spending.
But the drumbeat of entrepreneurial thinking that focuses on the “new” and always assume it’s the “better” ends up turning the idea of disruption on its head.
Twenty-first century entrepreneurs pride themselves on being “disruptors” as if they invented the idea. To be sure, the impact of digitally enhanced capitalism has ushered in a sometimes-dizzying period of innovation and change. But while the speed of those impacts is something new, the process has a long and rich history.
The advent of steam-powered looms ended the putting-out system of the cottage textile industry. The mass production of automobiles put innumerable buggy-whip manufacturers out of business and digital news media has long overtaken print as the prime source of information.
So it comes as no surprise that artificial intelligence is disrupting traditional notions of jobs and workforce development. But in this case, it is more than just learning new technologies and ways of doing things. The potential impact of AI on employment hangs like a laptop of Damocles over private and public economies alike. And while plenty of armchair analysts and other experts have weighed in on the issue, it is clear that whatever is happening to human labor – including the possibility of mass displacement of workers – is going to happen faster than anyone anticipates.
It is already evident in the offices and boardrooms of the major players in AI as companies shed thousands of jobs while investing billions in capital expenditures related to artificial intelligence.
According to reports, Amazon, Google, Meta and Microsoft are expected to spend nearly three quarters of a trillion dollars this year on AI-related expenses. In the past when companies invested that kind of money in themselves a strong uptick in hiring was sure to follow. This time, not so much.
The threat of AI to human employment certainly qualifies as disruption. But one has to ask: Is the disruption worth it? The uncertainty alone is enough to keep economists and consumers up at night.
