I believe it's not related to capability, but to how investment works. Aggregate demand is composed of consumption and investment (I'm referring to the global economy, combining both public and private expenditure). Investment is the money extracted by capitalist actors in the system that is reinvested to generate profits. These capitalist actors need an incentive (the promise of generating more money) to invest the money they have extracted, and this incentive is usually the latest hot technology.
For example, when the internet emerged, everyone wanted to be online; when smartphones appeared, everyone wanted to have an app; and when VR emerged, Facebook changed its name and lost half of its value in the stock market. Now, it's AI. Capitalists do not focus on the details of the technologies; to them, every new technology looks the same. They see new tech as a growing opportunity and old tech as a saturated market. Obviously, this perspective is flawed, but it doesn’t matter.
In my opinion, AI is not going to create more value. The only real impact it will have is reducing the amount of workforce needed to generate that value, which will ultimately push the economy into a recession. As consumption declines, I don’t see what new technology could come after AI to offset this effect through further investment.
For example, when the internet emerged, everyone wanted to be online; when smartphones appeared, everyone wanted to have an app; and when VR emerged, Facebook changed its name and lost half of its value in the stock market. Now, it's AI. Capitalists do not focus on the details of the technologies; to them, every new technology looks the same. They see new tech as a growing opportunity and old tech as a saturated market. Obviously, this perspective is flawed, but it doesn’t matter.
In my opinion, AI is not going to create more value. The only real impact it will have is reducing the amount of workforce needed to generate that value, which will ultimately push the economy into a recession. As consumption declines, I don’t see what new technology could come after AI to offset this effect through further investment.