Top economist Mohamed El-Erian is excited about AI - but warned of risks that come with the groundbreaking technology.
Photo Insert: El-Erian said AI can hugely benefit developing economies, but overconsumption could cause havoc.
"Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety," he said, Zahra Tayed reported for Business Insider. El-Erian said AI can hugely benefit developing economies, but overconsumption could cause havoc.
Speaking in a CNN interview on Tuesday, the former Pacific Investment Management Co. (PIMCO) chief said AI is more of an "equalizer" given its low barrier of entry, which could be highly beneficial for low-income groups and developing economies.
But there are also risks that come along with such easy accessibility.
"Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety. Excitement at what this technology allows, and generative AI allows a lot of customization in education, but also fear as to what it enables," El-Erian said, adding that the onset of a calculator sparked concern that people would lose the ability of mental arithmetic.
"By reducing a barrier to entry, which AI does in a very powerful manner, people overproduce it and overconsume it," he added.
The investor frenzy around technology stocks it's fueled has helped lift the Nasdaq by a staggering 37% so far this year and boosted the wealth of several tech leaders.