Automation holds the key: AI-enabled automation could help solve major economic challenges posed by immigration, low fertility rates, and increasing retirements in the US and other developed countries:
- Instead of relying solely on immigration to fill economic gaps, the US government could invest heavily in automation through public-private partnerships, similar to Operation Warp Speed for COVID-19 vaccines, to accelerate AI-driven solutions and spur economic growth.
- As fertility rates decline and societies age, automation can provide efficiencies and mitigate the economic impact of shrinking populations by replacing non-existent human workers in essential roles.
- With baby boomers retiring at an unprecedented pace, automation offers a way to bridge the workforce gap, especially in roles where relying on younger generations or foreign-born workers may not be feasible.
The case for an automation policy: Despite the potential of AI and automation to address economic challenges, current discourse often frames automation as an “apocalypse” rather than a solution:
- In the past, the US government recognized the importance of encouraging automation through financial incentives, research support, technology transfer, engineering education, and standardization.
- Today, companies are ready to embrace automation, as evidenced by survey results showing the increasing productivity gains and cost-effectiveness of robotics and other technologies.
- However, political support for a concerted effort like “Operation Automation” remains uncertain, as policymakers may be focused on other priorities.
Broader implications: While the adoption of automation must be carefully timed and job displacement is inevitable, testing the hypothesis that planned automation can alleviate economic stress is crucial:
- The technology and private sector readiness exist, but political will and a coordinated policy approach are necessary to fully leverage AI and automation as solutions to immigration, fertility, and retirement challenges.
- Policymakers must weigh the potential benefits of automation against the risks of inaction and consider the long-term implications for economic growth and societal well-being.
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