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Wednesday, 11 July 2018

Artificial intelligence could be really bad for emerging markets

Artificial intelligence could be really bad for emerging markets: The way developed economies adapt to the rise of automatiion won’t work for emerging markets, according to a study from the Center for Global Development. The crux of the issue is that artificial intelligence (robots) are mostly being used to take over jobs in unskilled sectors such as agriculture and industry, but these sectors house big pools of labor in developing countries, Jamie Condliffe writes for the New York Times. Some governments are looking to “de-incentivize” automation by reducing minimum wages for human labor, but wages are already low in many countries. “Another [solution] might be for developing countries to build out labor-intensive sectors that look set to be resistant to automation over the coming decades — such as social care, education, health care, tourism or infrastructure construction. But this is a risky approach, requiring large upfront investment without [an assurance] of protection from automation in the long-term.”

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