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The Future Economics of Artificial Intelligence: Mythical Agents, a Singleton and the Dark Forest

Author

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  • Naudé, Wim

    (RWTH Aachen University)

Abstract

This paper contributes to the economics of AI by exploring three topics neglected by economists: (i) the notion of a Singularity (and Singleton), (ii) the existential risks that AI may pose to humanity, including that from an extraterrestrial AI in a Dark Forest universe; and (iii) the relevance of economics' Mythical Agent (homo economicus) for the design of value-aligned AI-systems. From the perspective of expected utility maximization, which both the fields of AI and economics share, these three topics are interrelated. By exploring these topics, several future avenues for economic research on AI becomes apparent, and areas where economic theory may benefit from a greater understanding of AI can be identified. Two further conclusions that emerge are first that a Singularity and existential risk from AI are still science fiction: which, however, should not preclude economics from bearing on the issues (it does not deter philosophers); and two, that economists should weigh in more on existential risk, and not leave this topic to lose credibility because of the Pascalian fanaticism of longtermism.

Suggested Citation

  • Naudé, Wim, 2022. "The Future Economics of Artificial Intelligence: Mythical Agents, a Singleton and the Dark Forest," IZA Discussion Papers 15713, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15713
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    References listed on IDEAS

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    Cited by:

    1. Naudé, Wim, 2023. "Melancholy Hues: The Futility of Green Growth and Degrowth, and the Inevitability of Societal Collapse," IZA Discussion Papers 16139, Institute of Labor Economics (IZA).

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    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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