Zack Kass argues AI could offset economic damage from U.S. tariffs by scaling production faster and cutting costs. He predicts substantial automation gains over the next five years will boost efficiency across goods and services.
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Well, it's obviously an interesting time to talk about AI and its impact on the economy, given the yesterday's announcement from the US on tariffs. I think, though, that it has to be sort of argued right now that AI may, in fact, be the solution to the economic downturn that we're going to see as a result of tariffs, in large part, because if we can figure out how to harness AI to more quickly scale up production across goods and, of course, services, then I think we'll find that we sort of catapult ourselves into a new, much more automated future. And that's my bold prediction over the next five years that, in many ways, what the current administration is doing is, whether intentionally or not, forcing the world to become much more efficient in how it produces goods and services, and also requiring that we take a much stronger approach to production efficiency and cost reduction.