The nexus between artificial intelligence and economics

The history of a science has been described in terms of transitions between paradigms (Kuhn, 1962). A paradigm is a set of rules, standards and practices shared by groups of scientists, representing the continuation of a research tradition. For example, nanotechnology has been regarded as a revolutionary technology that is bringing about a paradigm shift in industrial research. Within a particular scientific discipline there are typically periods of stability, or normal science, punctuated by periods of crisis, leading to a revolution and a new normal science. During a stable period, puzzle solving activities take place in response to a mismatch between the paradigm and reality. The puzzles that cannot be solved are seen as anomalies of a paradigm, which produce disorder or crisis, and which encourage the willingness to try new approaches. The existence of unsolvable puzzles, such as how to overcome the limits of Moore’s Law and to benefit from nanotechnology, serves as an incentive to develop a new paradigm. In this book, we argue that the emergence and development of Artificial Intelligence (AI) represents a paradigm shift in science. While all prior paradigms have been based on an entirely human civilization, AI will create a human-machine civilization. It is likely that during this century the accelerating growth of computer power will result in machine intelligence exceeding human intelligence in capability. AI will outperform the biological portion of humanity. It is even possible that reverse engineering of our software (our minds) and upgrading our hardware (our bodies) may indefinitely extend human life before the dawn of the 22nd century. Humankind will coexist and may ultimately merge with its computational technology. The intelligent beings that would emerge would represent the next stage in evolution. In a few decades, the average human brain may host billions of blood-cell-sized computers that will effectively multiply our biological intelligence a billion fold. This vast inter-neuronal network of computers would allow humans to think at electronic speeds, store worlds of information, and disseminate that information to each other or to all humans instantly