Mind Matters Natural and Artificial Intelligence News and Analysis

TagLudwig von Mises

Game of chess

Why AI Cannot Successfully Run the Economy

Artificial intelligence is insufficient to predict and plan for the vast complexities of an individual human being, let alone an entire country

Optimists talk about artificial intelligence (AI) as magnificent tools and ultimately a source of world salvation. Pessimists warn that AI can produce the implements of tyranny and ultimately soulless world domination. Many people in both camps take these views without seriously questioning the limits of AI.  To challenge the optimists: Can AI run a human society’s economy better than humans? Governments are expanding and taking more power to run everything, and many people accept or even cheer them for doing so. To carry out that mission, such Leviathan governments invariably increase taxes and impose regulations upon economic activity: prices, wages, investments, interest rates, use of private property, transfers of ownership, and permissible or forbidden transactions.    Leviathan’s cheerleaders don’t explain how all-powerful governments claiming to run national economies can actually succeed.…