Aboutme.subineconomics: Artificial Intelligence can create double Economies of scale:
Artificial Intelligence is the talk of the town? This is good as new tech creates more productivity and dexterity. Artificial intelligence will provide you double Economies of scale.
In Economics, we always keep one thing constant and try to improve on the basis of input-output analysis. Technology can't be kept constant, labour is getting skilled day by day, but we can keep the land and building as constant.
P =(land, building, tech, labour) as land and building are kept constant, so
P = (tech, labour), as artificial intelligence come in there will be change in tech as well as change in skill of labour.
P1 = (∆tech, ∆labour).........1
In the installation period and ignorance, the production will be low. Then when all the drawbacks, started to rectify, production will rebound faster than the production cycle. If tech is left alone, labour has kept constant, then the production cycle will improve, after a stage, it can come down.
But of labour is getting trained and accompanies production the Economies of scale will be doubling faster. This will create billionaires in less amount of time.
P1 = (∆tech + ∆ labour) = 100 unit's.
After rectification,
∆ tech + ∆ labour = 200 units
∆tech + ∆labour = 400 units
∆tech + ∆labour = 1600 units
∆ tech + ∆labour = 3200 units
∆tech + ∆labour =6400 units
Technology and skilled labour creates magic in the production system. Adding will improve the productivity to double and enhance the production.
The production curve will rise vertical and keep the production cycle to the maximum. This production status will start to refine.
In the late 21st century, production of anything will be create "big and fast".
Now we will be redefining production, so that things will get specialized to "Nano" items. This Nano items will be cheaper, better and more efficient than our products. It will be cheaper too. As we include labour in the production cycle, we see demand will increase and growth pattern will take off. The best example is Amazon, which captured the world in few years. If artificial Intelligence is properly used, we see companies will be growing to current type within 1 to 2 years. Alarming right...
