Google Study: No Immediate Link Found Between Generative AI and Unemployment, but Rapid Advancements Expected

Google's recent study, conducted by Andrew McAfee of MIT Sloan School of Management, examined the economic impact of generative AI, finding no direct correlation between AI advancement and unemployment, at least in the short term. The study highlighted that current generative AI lacks the ability for complex tasks involving planning, reasoning, or memory. However, it noted rapid improvements in AI technology due to intense research efforts. For instance, OpenAI's GPT-3.5 system outperformed only 10% of humans on the US bar exam, while its successor, GPT-4, surpassed 90% of humans a year later. The study compared AI to the steam engine, suggesting it could lead to a new Industrial Revolution with faster implementation due to existing infrastructure. While it might not lead to mass unemployment, it could impact higher-paying jobs and business competition dynamics.