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The Unicorn in the Room

The Unicorn in the Room

April 18, 2024

With inflation slowly (very slowly) ticking towards the Feds 2% target and the market hitting all time highs this year, many people are wondering, in anticipation and mild amazement, when the recession is due to hit. We seem to be creeping towards the possibility of continued economic and market growth, lower inflation and eventually a lower interest rate environment. All of this would be a boon for the market and investors globally. The unicorn in the room that may enable this to happen is Artificial Intelligence. Although there are many more factors than what is mentioned below, here are a couple of reasons for this:

  1. With much needed investment in American infrastructure, there are many more construction and skilled labor positions available. More people entering vocational and trade schools and earning higher incomes for those positions. This is helping to fill positions that may be lost due to increased efficiencies generated with AI.
  2. New industries are emerging to support the development and implementation of Artificial Intelligence across a variety of sectors including but not limited to finance, healthcare, education, technology, retail, and construction.

Successful implementation of Artificial Intelligence may prove to increase production, reduce cost and create new jobs. It will be difficult and challenging to do, however, the benefits could be impressive. This is another way of saying; the overall pie will get larger - expanding the pie. With a larger pie we may be able to enhance work and increase pay while providing more opportunities.