EXCLUSION AND THE GROWTH OF AI TECHNOLOGY: A TRADE-THEORETIC ANALYSIS Provisionally Accepted
Bharat Hazari1
Vijay Mohan1, 2*
- 1Lattice Analytics, Pty Ltd, Australia
- 2RMIT University, Australia
This paper provides a four-good general equilibrium framework with international trade for assessing the impact of an advancement of automation and artificial intelligence (A&AI) on the welfare of a group of agents who are excluded both from owning productive assets, such as capital and land, as well from consuming digital output (digital exclusion). We show that, depending on magnitude of the factor intensities, the accumulation of A&AI capital may negatively affect the income of either the excluded group who provide unskilled labor, or the owners of land. In doing so, we bring out the conflict of interests that may arise between the owners of A&AI capital and other groups within society, which has implications for the pressures that exist to slow down the adoption of A&AI in an economy.
Keywords: Automation, artificial intelligence, AK production function, Digital exclusion, production exclusion
Received: 15 May 2023;
Accepted: 14 Mar 2024.
Copyright: © 2024 Hazari and Mohan. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Dr. Vijay Mohan, RMIT University, Melbourne, Australia