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Why Machines Will Not Replace Entrepreneurs. On the Inevitable Limitations of Artificial Intelligence in Economic Life

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  • Van Den Hauwe, Ludwig

Abstract

This paper critically explores some supposed implications of the development of artificial intelligence (AI), particularly also machine learning (ML), for how we conceive of the role of entrepreneurship in the economy. The question of the impact of AI and ML is examined by hypothesizing a decentralized market-based system and raising the question of whether entrepreneurs will someday likely be replaced by machines. The answer turns out to be highly skeptical. Not only does the materialist worldview behind the ambitions of much AI research cast serious doubts upon the chances of success of any attempts to emulate entrepreneurship algorithmically with the help of computers, the very possibility of artificial general intelligence (AGI) can also be ruled out on purely scientific grounds. The paper concludes that human entrepreneurs will remain the driving force of the market.

Suggested Citation

  • Van Den Hauwe, Ludwig, 2023. "Why Machines Will Not Replace Entrepreneurs. On the Inevitable Limitations of Artificial Intelligence in Economic Life," MPRA Paper 118307, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118307
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    References listed on IDEAS

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    1. Jesús Huerta de Soto, 2010. "Socialism, Economic Calculation and Entrepreneurship," Books, Edward Elgar Publishing, number 13905.
    2. Jesús Huerta de Soto, 2008. "The Austrian School," Books, Edward Elgar Publishing, number 13047.
    3. Sebastian Lapuschkin & Stephan Wäldchen & Alexander Binder & Grégoire Montavon & Wojciech Samek & Klaus-Robert Müller, 2019. "Unmasking Clever Hans predictors and assessing what machines really learn," Nature Communications, Nature, vol. 10(1), pages 1-8, December.
    4. Per L. Bylund, 2022. "Entrepreneurship and the market process," Chapters, in: Per L. Bylund (ed.), A Modern Guide to Austrian Economics, chapter 5, pages 84-102, Edward Elgar Publishing.
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    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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