Chat gpt and inflation

nonolerigolo

Hello, any thought about chatGPT and inflation. Could it cause deflation due to the use of ia rather than humans.  I understand it is pure speculation but appreciate any thoughts Thank you very much 

GenieBoy

I'm waiting for the day when Humans become obsolete. 

eskbanker

nonolerigolo said:

Hello, any thought about chatGPT and inflation. Could it cause deflation due to the use of ia rather than humans.  I understand it is pure speculation but appreciate any thoughts Thank you very much 

Economies and markets inevitably feature many moving parts and interdependencies, but personally I'd have thought that there are quite a few links in any chain between AI and inflation rather than any obvious connection.  How would you see them being linked?

masonic

Did you not ask it?

I'm sure it is causing deflation in the sectors it can most benefit, such as software development, copywriting and web-based customer service. It will allow more to be done with fewer resources, thereby lowering the cost of these services for at least a portion of those contracting such work. Likewise for generative AI and graphic design.

However, it only seemed fair to give it the right of reply, and it was quick to point out that economic factors such as monetary policy, fiscal policy, supply and demand dynamics, productivity, and other macroeconomic variables primarily drive deflationary or inflationary pressures. Overall, the impact of ChatGPT on the economy is likely to be more nuanced and dependent on various other factors at play in the broader economic landscape.

Nebulous2

masonic said:

Did you not ask it?

Bard says:-

AI could reduce inflation by making it easier for businesses to operate more efficiently.

Or it could lead to higher inflation by developing new products and services that are more expensive than existing products and services. 

That's a much reduced version. One thing I find about Bard is that it is very repetitive and wordy. I think I have lengthy posts - I've sometimes said I never use two words where ten will do, but I'm at least constrained by my limited typing skills.

Bard doesn't have those limitations..... 

kuratowski

One thing I saw was a comparison between ChatGPT and Doctors in responding to patients concerns.  Patients generally preferred the ChatGPT version, which tended to be longer and consider more possibilities, and it tended to provide more background information.  The way I interpreted it was that the Doctors were likely very busy people, and would only write the minimum they thought was necessary, but ChatGPT had no need to consider how long it would take to type out its responses. 

On the other hand - ChatGPT has absolutely no knowledge or understanding of anything, over my dead body would I be taking its medical advice (and you can't rule that out as an outcome).  I've seen several cases of ChatGPT, and similar systems, lying or inventing information.  That should come as no surprise, as ChatGPT is nothing more than an engine to predict unknown answers based on previously known data.

I think this latest advance in AI has been hyped up, like self-driving cars before, and people will very soon realise how far away from being genuinely useful it actually is.

nonolerigolo

I saw it linked by effectively reducing the cost of service and products. companies may not be prepared to pass on those reductions etc …

subjecttocontract

GenieBoy said:

I'm waiting for the day when Humans become obsolete. 

Apparently some of them already are......politicians are always accusing the other party of being out of touch !

Millyonare

kuratowski said:

One thing I saw was a comparison between ChatGPT and Doctors in responding to patients concerns.  Patients generally preferred the ChatGPT version, which tended to be longer and consider more possibilities, and it tended to provide more background information.  The way I interpreted it was that the Doctors were likely very busy people, and would only write the minimum they thought was necessary, but ChatGPT had no need to consider how long it would take to type out its responses. 

On the other hand - ChatGPT has absolutely no knowledge or understanding of anything, over my dead body would I be taking its medical advice (and you can't rule that out as an outcome).  I've seen several cases of ChatGPT, and similar systems, lying or inventing information.  That should come as no surprise, as ChatGPT is nothing more than an engine to predict unknown answers based on previously known data.

I think this latest advance in AI has been hyped up, like self-driving cars before, and people will very soon realise how far away from being genuinely useful it actually is.

Not sure human doctors do such a good job as we think...

Globally, in reality, as many as 4 in 10 patients are harmed in primary and outpatient healthcare (source: BMJ). That's almost a 50-50 chance of being harmed by a visit to a doc or nurse.

Trialing AI healthcare to replace human healthcare -- it learns fast, and has a perfect memory -- may not be such a bad thing.

adindas

nonolerigolo said:

Hello, any thought about chatGPT and inflation. Could it cause deflation due to the use of ia rather than humans.  I understand it is pure speculation but appreciate any thoughts Thank you very much 

If this is written as an essay. This could win noble price in economics, rofl.

Typically inflation is The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time.

There is ChatGPT, AI, Machine Learning, Robotic to increase efficiency but one thing for sure is that you could not eat them. They are not form of energy. So they can not heat your home during the winter, they can not power your vehicles.

If there is a food, energy disruption and shortage, people spend excessively as people have more money to spend, the government printing a lot of money the inflation is 100% guaranteed to increase, irrespectively of what ChatGPT, AI is doing.

But like everything in life you could always find the relationship if you look for it. Like we are all siblings because of our ancestors are Adam and Eve.

Zaul22

Mass unemployment will probably be more effective than the bank of England at lowering inflation.