The impact of recent developments in AI and their implications for educational policy

In today's "Knowledge Age," human capital, of which knowledge is the major component, has become the most important economic resource, supplanting the traditional factors of production, land, labor, and (physical) capital.

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Knowledge has certain unique properties that distinguish it from physical and financial resources and must therefore be managed differently.

IMPLICATIONS OF AI DEVELOPMENTS

There are fears, both among organizational decision makers and thought leaders, that current developments in Artificial Intelligence (AI), notably the emergence of Generative AI, such as ChatGPT and Deep-Seek, will soon achieve human cognitive capabilities and will eventually replace humans in many facets of social and organizational life.

Debates on this issue continue to rage on and will probably remain unsettled for an indefinite period of time.

It is generally agreed that AI — Generative AI, in particular — provides a useful set of tools for professional practitioners and top-level decision makers of organizations and social institutions. However, those who occupy lower levels in the organizational and social hierarchies and who typically do routine and repetitive tasks are bound to lose their jobs to AI and will have to develop new skills that are more employable, such as entrepreneurial and specialized technical skills.

Due to inherent limitations of AI, strategic and other high-level choices will continue to be the responsibility of highly trained and experienced human decision makers.

DIGRESSION: LIMITATIONS OF AI