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The Benefits and Environmental Risks of Artificial Intelligence
Abstract
Artificial intelligence promises to increase output and productivity by an amount that surpasses any innovation since the onset of the Industrial Revolution. The ability to automate routine tasks, perform clerical and research functions, operate robots, and enhance and optimize physical, human, and virtual networks can free labor into alternative uses. Its ability to simulate chemical, pharmaceutical, and physical reactions can speed research and our understanding of the physical and biological worlds around us. However, this technology depends on the fabrication of sophisticated microchips and the employment of large data processing centers, each of which is resource-intensive. This paper analyzes the energy and environmental aspects of this promising technology within the construct of the monopolistic competition model and finds that our economy may be ill-prepared for the resource risks from artificial intelligence if its success mirrors what many prognosticators expect.
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