Is AI an “extractive innovation”? Wages have fallen for 100 years during the Industrial Revolution

The Age of AI: Lessons from Mythos (8)

There are growing expectations that the spread of cutting-edge AI (artificial intelligence) will improve productivity and resolve labor shortages. However, for many years in Japan, people's wages did not increase even as productivity increased. Ryutaro Kono, head of economic research and chief economist at BNP Paribas Securities, is concerned that if the introduction of AI continues as it is now, it will become ``an exploitative innovation.''

--The emergence of cutting-edge AI such as the American Anthropic's ``Claude Mythos'' is posing a new threat to financial institutions' systems. How do you see the impact on the economy?

"Financial institutions are constantly forced to adopt cutting-edge AI. No one can verify whether it's truly cost-effective, but they still have to keep buying AI services. In a sense, this seems to be prolonging the AI bubble. It's like Albert Camus's The Myth of Sisyphus, where you push a stone to the top of a mountain, only to roll back down and have to keep pushing it back up again."

Wages fell during the industrial revolution

--There are growing voices pointing out the dangers of bubbles.

“What I’m worried about is AI development…