'What Kind of Society Will We Become Depends on Political Choices... Safety Net Needed for AI Transition'

The future of society hinges on political choices, especially concerning the integration of artificial intelligence, according to Carl Benedikt Frey, a professor at the University of Oxford. Speaking at the 5th Hankyoreh People and Digital Forum, Frey, a leading economist known for his work on automation's impact on labor markets, emphasized the critical nature of the current 'transition period.' He argued that a strong social safety net is essential to manage this phase, ensuring that the benefits of technological change eventually reach ordinary workers.

Frey cautioned against the 'technological trap,' where the benefits of new technologies become concentrated among a small elite, potentially sparking widespread public resistance and hindering future innovation. Drawing on historical examples, he noted that while technological advancements like the Industrial Revolution promised long-term economic solutions and liberation from labor, the benefits for average workers often took decades to materialize. In some cases, increased productivity paradoxically led to decreased wages for lower-income groups, as gains accrued primarily to capital owners and highly skilled workers.

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The benefits of new technologies are not evenly distributed from the beginning, and if the transition is not managed properly, resistance to technological change will arise, like the Luddites. Even long-term gains may not be realized.

The professor differentiated between 'substitute technologies,' which replace human labor and can increase worker suffering, and 'complementary technologies,' which enhance worker capabilities, boosting both productivity and wages. He believes that the choices made regarding technology adoption significantly influence the lives of workers. While acknowledging the potential for AI to create new industries and jobs, similar to the IT revolution, Frey reiterated that a strong social safety net is crucial for a just transition, preventing workers from bearing the brunt of the changes.

Ultimately, Frey asserted that the impact of automation on society is not solely determined by the technology itself but by human decisions. He stressed that while technological progress and automation are necessary for societal dynamism, the risks of downward spirals must be minimized. The key lies in making conscious political choices about what to automate and what kind of society we wish to build, ensuring that economic growth is balanced with social inclusion and that the fruits of AI are shared more equitably.

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The impact of automation on human society is not determined solely by the technology itself, but by human political choices about what to automate and what kind of society we want.