AI's impact on productivity likened to Adam Smith's pin factory model
ft.com —
A recent article compares the impact of artificial intelligence (AI) on productivity to Adam Smith's pin factory model. It highlights how AI and digital technologies are transforming industries by increasing efficiency and creating new jobs. The article discusses how companies like BMW are using AI and digital twins to enhance production processes. This technological advancement is reshaping the labor market and the way tasks are divided in modern factories. It suggests that AI and digital technologies may lead to significant changes in economic concepts, similar to historical shifts caused by Smith's ideas. The role of free markets in facilitating the adoption of these technologies is also emphasized.