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Artificial Intelligence and Its Contradictory Impact

Every advancement in AI efficiency results in a significant surge in resource requirements, as each 10-fold improvement leads to an increase of 100 times in demand.

Artificial Intelligence's Jevons Paradox
Artificial Intelligence's Jevons Paradox

Artificial Intelligence and Its Contradictory Impact

In the rapidly evolving world of artificial intelligence (AI), efficiency has become a crucial factor for companies to stay competitive. However, as AI becomes more efficient, it seems that the resource crisis is not only persistent but also escalating.

The paradox of AI efficiency suggests that while AI may make programmers more efficient, it also leads to more code to maintain and increased complexity. For every 10x efficiency gain in AI, usage increases 100-1000x, new use cases emerge, and total compute demand increases. This paradox recursively compounds, as AI makes AI development more efficient, leading to better models, more use cases, and more development.

One of the most significant contributors to this resource crisis is the increasing efficiency of AI technology. Efficiency improvements such as model compression, quantization, distillation, and edge deployment have significantly decreased costs. However, this increased efficiency has enabled the expansion of AI use in various applications and industries, exacerbating the resource crises.

The launch of ChatGPT by OpenAI in November 2022 is a prime example of this phenomenon. The platform gained 100M users in just two months, increasing global AI compute demand 1000x. Similarly, GitHub Copilot made coding AI more efficient, resulting in millions of developers using AI, with a total compute increase of 10,000x.

The progression in image generation AI, from DALL-E 2 to Stable Diffusion, has resulted in daily AI images generated at a rate of 100M, with a total compute increase of 1000x. These advancements, while impressive, have contributed to the exponential growth in AI compute demand.

The efficiency race often leads to infrastructure expansion, not reduction. Every efficiency gain in AI requires more network capacity. This means that even as AI becomes more efficient, the demand for resources continues to grow.

The Sustainability Impossibility suggests that efficiency improvements alone cannot solve the resource crisis caused by exponential demand growth in AI. Scenario 1: the Runaway Train, if efficiency improvements continue and demand grows exponentially, a resource crisis could occur by 2030, leading to societal disruption. By 2030, AI energy consumption is projected to reach approximately Japan's current consumption level, posing significant challenges to power grid capacity, renewable generation, and cooling water availability.

Several possible interventions have been proposed to address the AI resource crisis, such as usage caps, progressive pricing, resource taxes, application restrictions, and efficiency penalties. However, these interventions are politically and economically challenging. Making AI self-limiting by capping efficiency improvements, building in resource awareness, automatic throttling, sustainability requirements, and true cost transparency is technically challenging.

A cultural shift is required for a fundamental value shift. A cultural shift against AI dependency, digital minimalism movements, human-first policies, the slow AI movement, and conscious consumption are necessary to counteract the Convenience Ratchet and Induced Demand. The Convenience Ratchet occurs when users find non-AI applications or services less appealing due to their AI-enhanced counterparts, leading to permanent elevated demand. Induced Demand refers to more efficient AI creating more AI use, leading to habitual use and dependency.

Scenario 3: the Conscious Constraint, if the paradox is recognized and voluntary limitations are implemented, a sustainable AI movement could be possible, leading to managed deployment and balanced progress. The Decision Paradox suggests that while AI may make decisions more efficient, it can lead to an explosion of micro-decisions and increased complexity. The Content Paradox warns that while AI may make content creation more efficient, it can result in information overload and quality degradation.

The paradox of AI efficiency presents a complex challenge. As we strive for efficiency, we must be mindful of the resources consumed and the potential consequences. A balanced approach that considers both efficiency and sustainability is necessary to ensure a future where AI can continue to benefit society without causing harm.

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