Mohamed El-Erian.
Fred Prouser/Reuters
Top economist Mohamed El-Erian is excited about AI – but warned of risks that come with the groundbreaking technology.
“Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety,” he said.
El-Erian said AI can hugely benefit developing economies, but overconsumption could cause havoc.
Renowned economist Mohamed El-Erian is excited about artificial intelligence – but warned that overconsumption of the technology can lead to chaos.
Speaking in a CNN interview on Tuesday, the former PIMCO chief said AI is more of an “equalizer” given its low barrier of entry, which could be highly beneficial for low-income groups and developing economies. But there are also risks that come along with such easy accessibility.
“Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety. Excitement at what this technology allows, and generative AI allows a lot of customization in education, but also fear as to what it enables,” El-Erian said, adding that the onset of a calculator sparked concern that people would lose the ability of mental arithmetic.
“By reducing a barrier to entry, which AI does in a very powerful manner, people overproduce it and overconsume it,” he added.
“But I’m generally excited. I’m excited because AI is an equalizer more than it is an un-equalizer. It can provide a lot more opportunity for people, both the lower income groups within the western economy, but especially those in developing countries,” El-Erian said.
He warned against overusing AI so that it doesn’t create “havoc and bad things,” El-Erian added.
AI has seen much hype since the successful debut of OpenAI’s ChatGPT. The investor frenzy around technology stocks it’s fueled has helped lift the Nasdaq by a staggering 37% so far this year, and boosted the wealth of several tech leaders.