Schumpeterian perspectives on consequences of Artificial Intelligence

In this paper we discuss recent economic research on the consequences
of Artificial Intelligence (AI). We take a Schumpeterian perspective on
this research, and, with reference to Schumpeter’s ‘final thesis’, our starting point is research discussed at NBER conferences. The contributions
of this paper are both theoretical and conceptual. We explore and identify the limitations and necessary modifications to Schumpeter’s model
of the engine of capitalism necessitated by the current AI based phase of
capitalist evolution. We argue that as the task-based framework explicitly extends the analysis of the consequences of technological change to
include wage and employment dynamics, it accommodates Schumpeter’s
emphasis also on social evolution. However, even in its dynamic form, the
framework does not contribute to dynamic analyses in the Schumpeterian
sense. Finally, we argue that the emphasis on AI as a general purpose
technology omits the central Schumpeterian insight that each long wave
of technological change should be considered only in its historical context.