DeepSeek’s latest research, utilizing a novel algorithm, has generated increased debate regarding the traditional economic framework for Artificial Intelligence. The Jevons paradox, positing that efficiency gains diminish with increased utilization, is being revisited. The algorithm’s findings suggest that the current economic models may underestimate the scaling of AI’s impact. Economists are now investigating potential shifts in resource allocation and societal dynamics resulting from this increased automation. Researchers are focusing on quantifying these effects across different sectors.
Credits: Finance & economics