Artificial Intelligence Could Solve the U.S. Economy’s Biggest Problem: Its Skyrocketing Fiscal Deficit
A working paper released by the Center on Regulation and Markets at Brookings Institution projects that artificial intelligence (AI) could reduce the annual U.S. budget deficit by as much as 1.5% of gross domestic product by 2044, or about $900 billion in nominal terms. This is a significant finding, as the U.S. budget deficit has been a major concern for the country’s economic health.
The authors of the paper, Ben Harris, Neil Mehotra, and Eric So, argue that AI could increase productivity in the health care sector, making it more efficient and reducing the burden on the conventional health care system. They also suggest that AI could “democratize” access to health care by giving people more options for preventative medical care, changing the “who” and “where” of health care.
The paper highlights AI’s potential to improve health care services and public health, making it a critical component in reducing the U.S. budget deficit. According to the authors, AI could ease pressure on the government’s fiscal deficit, which topped $1.8 trillion in the fiscal year ended September 30.
However, implementing AI in health care is not without its challenges. The authors acknowledge that there are various impediments to adopting AI, including regulation, incentives, and the associated risks and liabilities. Nevertheless, they believe that the potential benefits of AI in health care make it worth pursuing.
The paper also notes that AI’s impact on federal spending is still “highly uncertain.” However, the authors believe that AI could ultimately be more transformative for the economy than past technological leaps, such as the use of personal computers in the 1990s.
In conclusion, the paper suggests that AI could play a critical role in reducing the U.S. budget deficit by increasing productivity in the health care sector and improving public health. While there are challenges to implementing AI, the potential benefits make it an important area to explore.