What AI Means for the Economy and for Politics

In this episode of Ones and Tooze, Cameron Abadi and Adam Tooze delve into the economic and technological implications of AI, starting with the data point of $400 billion in AI infrastructure spending by U.S. tech firms. They explore whether AI qualifies as a general-purpose technology, comparing it to historical precedents like steam power and electrification, and discuss if AI could be an unprecedented technology capable of accelerating innovation itself. The conversation touches on the debate within the AI community regarding scaling laws versus hitting a wall, the extractive nature of AI in terms of resources and labor, and the concept of AI as a cultural and social technology that could reorder society. They also examine AI's potential impact on economic planning and the future of work, drawing parallels with the Industrial Revolution and the rise of office work.