The Congressional Budget Office (CBO) has released its first-ever report on artificial intelligence (AI), commissioned by the House Budget Committee. The report, titled “Artificial Intelligence and Its Potential Effects on the Economy and the Federal Budget,” provides critical insights into the economic benefits and challenges of AI technology.
According to the CBO, AI could transform society in a similar way that technological advances like the steam engine and electrification did in the past. The report also notes that generative AI can complement low-skilled workers, while earlier forms of AI may have boosted wages for skilled workers.
In terms of the federal budget, the CBO suggests that AI could increase revenues by improving auditing capabilities and taxpayer compliance with the tax code. Additionally, successful use of AI to reduce fraud could result in fewer improper payments in large mandatory spending programs such as Medicare, Medicaid, and Social Security.
The report also notes that outlays for AI could take the place of other federal spending, such as statistical analysis software. Overall, the CBO’s analysis provides a qualitative look into how AI technology will shape the economy.
This report is the result of a roundtable held by the House Budget Committee earlier this year, which brought together experts to discuss the implications of AI on the US economy and government. The report highlights the potential for AI to improve government efficiency and reduce the deficit if used correctly.
The release of this report demonstrates the House Budget Committee’s commitment to harnessing technological innovations to address fiscal challenges. By shedding light on the economic impacts of AI, the CBO has taken a significant step towards understanding the role that this technology will play in shaping the US economy in the future.
Source: https://budget.house.gov/press-release/house-budget-committee-commissions-first-ever-cbo-report-on-artificial-intelligence