Expert warns rapid AI growth could trigger global economic crises

Artificial intelligence (AI) technologies are rapidly transforming economies around the world, yet considerable uncertainties about AI threaten causing global economic catastrophes.


Current and emerging AI technologies have the ability to meet the digital economy’s security, efficiency, economic, and social goals; nevertheless, experts warn of AI’s privacy and ethical difficulties, as well as additional concerns about privacy and misinformation.

Recent study has shown that corporations investing in AI-powered automation to generate profits lay off workers during crises to save expenses, raising concerns about a broader threat of AI to the employment market.

Sebnem Ozdemir, associate professor and chairman of the Data Science Department at Istanbul’s Istinye University, told Anadolu that the AI in question must first be identified before discussing the possible hazards that each form of AI technology poses.

Ozdemir added that data-based AI solutions, which generate responses based on collected data, raise concerns about unfair competition and explainability.

She pointed out that AI models that have been in use for a long time have had substantial applications, such as forecasting and directing the market using available data.

“A few months ago, there was a serious discussion in the UK regarding the crises these solutions may bring about and the ways we can combat them, the most important of which was the need for implementing regulations on the manipulation power of companies holding data monopolies, though data manipulation is only one of the issues,” according to her.

Ozdemir stated that black box AI systems raise even more worries because they are impenetrable technologies whose inputs and actions are impossible to determine, and algorithms make decisions without clear or deductible causes.

“For example, in the case of economy, a black box AI system can suggest an idea to direct the market, and let’s imagine, the decision to be made turns out to be a big one, I mean, isn’t that just scary,” Ozdemir claimed.

She suggested that the decisions and suggestions made by generative AI technologies, such as generative pre-transformers (GPT) and large language models (LLMs), may result in even worse problems.
“Although such AI tools are supposed to act like intelligent humans who have read all the books in the world, they still have human problems, such as making things up and believing them, whether or not their conceptualized ideas reflect real life or have real use cases in economy, for instance,” she said. She cautioned that these solutions might cause additional financial difficulties.


“Financial expert AI machines make financial decisions.”

According to Ozdemir, while there are certain drawbacks to using AI, there are also many benefits, as organizations may utilize AI to increase profit margins and gain market dominance while also depending on AI for risk management.

She stated that a shortage of resources causes AI to generate biased and inaccurate responses since its decision-making capabilities are severely limited, making it hazardous.

She said that data training is critical to the effectiveness of AI models.

She highlighted that while AI technologies are still too early in development to entirely replace human labor, we have reached a point where the skill of those who train AI is becoming increasingly important.

“Imagine a digital entity making financial decisions with no salary expectations, of course companies will flock to such solutions,” Ozdemir pointed out.

Financial expert Ozdemir stated that AI machines are produced and evolved at a quick pace with human interaction.

“However, currently, it is too early to leave all the decisions to AI, and the current practice is to have human teams on the wheel steering AI to the right way, though this solution of constant human intervention in AI decision-making is estimated to last three years or so,” the researcher stated.