Fortune recently wrapped up its dynamic Brainstorm Tech conference in Deer Valley, Utah last week. The event was abuzz with discussions on artificial intelligence (AI), reflecting its growing significance in technology and business. Here is a recap of some of the key insights on AI from the event:
AI’s Impact on the Labor Market
On Monday, San Francisco Federal Reserve President Mary Daly was interviewed by Emma Hinchliffe. Daly emphasized that the impact of generative AI on the labor market hinges on how we leverage the technology. She predicted that generative AI could contribute to an average annual productivity growth of 1.5%. However, Daly highlighted a greater potential if AI is used to invent new products and processes rather than just automating existing ones. She reminded the audience that historically, innovative technologies have created more jobs than they have eliminated, suggesting AI will likely follow this trend.
AI and Human Labor: A Symbiotic Relationship
Stanford University economist Erik Brynjolfsson urged companies to view AI as a complement to human labor rather than a replacement. He pointed out that while companies struggle to achieve a reasonable return on investment from generative AI, the focus should shift from automating jobs to automating tasks. This task-based approach, he explained, could lead to increased demand for roles and more hiring, a concept known as Jevons Paradox. Brynjolfsson’s company, Workhelix, specializes in task-based analysis to help businesses strategically implement AI.
Democratizing Wealth Management
Robinhood CEO Vladimir Tenev discussed AI’s potential to democratize access to wealth management services during his conversation with Fortune editor-in-chief Alyson Shontell. Tenev predicted that while high net-worth individuals will continue to rely on human advisors, AI could provide affordable, high-quality financial advice to a broader population.
Advancements in Humanoid Robotics
Peggy Johnson, CEO of Agility Robotics, showcased the company’s Digit humanoid robot, which is already operational in warehouses through a partnership with GXO Logistics. Johnson announced that Agility is integrating large language models (LLMs) with Digit, allowing it to understand and execute instructions given in natural language. This innovation is seen as a critical step in addressing the significant shortage of warehouse workers.
The Brainstorm Tech conference underscored the transformative potential of AI across various sectors, highlighting both the challenges and opportunities it presents. As AI continues to evolve, its role in enhancing productivity, democratizing services, and complementing human labor will be critical areas to watch.
Resources:
MSN, AI’s impact on labor productivity will depend on how we use the technology
