ARTIFICAL
INTELLIGENCE
AND ITS IMPACT ON SOCIO ECONOMIC ASPECTS OF
SOCIETY
Group
Members
Our group consists of 5 members, each contributing their skills and
dedication. Through combined efforts, we successfully completed the
research report, with each member's hard work playing a key role in the
project’s success.
Syamantak Mondal
Satyaki Das
Ashok Kumar Ghosh
Aditya Das
Kingshuk Dasgupta
Table Of
Contents
01 Introduction 05 AI in Finances
02 Quality Of Life 06 Ethical Considerations
03 Job Market Dynamics 07 Conclusion
Education
04
Transformation
Introduction
Artificial Intelligence (AI), Machine Learning (ML), and
Large Language Models (LLMs) are rapidly transforming
various aspects of society, significantly impacting
socioeconomic factors. This report delves into the
multifaceted implications of these technologies, focusing
on quality of life, the job market, trends in layoffs, and
other crucial dimensions such as education, healthcare,
and ethical considerations. The exploration aims to
provide a comprehensive understanding of how these
technologies can both enhance and challenge existing
social structures.
What is AI ?
Artificial Intelligence (AI) refers to machines designed to
perform tasks requiring human-like intelligence, such as
learning, reasoning, and understanding language. AI is
mainly divided into Narrow AI, focused on specific tasks
like voice recognition, and General AI, which would
perform any intellectual task a human can—though this
remains theoretical.
In 2023, AI is advancing rapidly, particularly in deep
learning, which powers technologies like image
recognition, self-driving cars, and Large Language Models
(LLMs) like GPT-4. AI is also expanding into creative fields,
generating art and music, and is increasingly integrated
into daily life through virtual assistants and personalized
recommendations.
Quality of life
Enhancements in daily living
AI technologies have the potential to significantly improve the quality of life by
automating mundane tasks, thereby freeing up time for individuals to engage in
more meaningful activities. Nowadays, smart home devices are being used to
manage energy consumption efficiently, while AI-driven personal assistants
help organize daily schedules and reminders. These advancements contribute
to a more streamlined lifestyle, allowing individuals to focus on personal
development and leisure activities.
Healthcare Improvements
In the healthcare sector, AI applications are revolutionizing patient care
through predictive analytics and personalized medicine. AI algorithms analyze
vast amounts of data to predict health outcomes, enabling early intervention
and tailored treatment plans. This not only enhances patient outcomes but also
reduces healthcare costs over time. AI accelerates development in various
sectors of medical research, as have been listed below:
Job Market
Dynamics
Job Creation vs. Job Displacement
The integration of AI and ML into various industries raises critical questions
about job displacement and creation. While these technologies can automate
repetitive tasks— leading to reduced demand for certain job roles—they also
create new opportunities in fields such as data analysis, AI ethics, and software
development. The net effect on employment remains a topic of ongoing
research; some studies suggest that while lowskilled jobs may be at risk, high-
skilled roles could see increased demand.
Tech Layoffs
The integration of AI and ML into various industries raises critical questions
about job displacement and creation. While these technologies can automate
repetitive tasks— leading to reduced demand for certain job roles—they also
create new opportunities in fields such as data analysis, AI ethics, and software
development. The net effect on employment remains a topic of ongoing
research; some studies suggest that while lowskilled jobs may be at risk, high-
skilled roles could see increased demand.
Layoffs in 2024
Cisco systems
Intel
Dell Technologies
Tesla
SAP
0 5000 10000 15000 20000
Education
Transformation
Growing EdTech Businesses
In the recent years, there has been a phenomenal growth in
edtech businesses. Besides creating more jobs, it has made
quality education much more easily accessible. Companies like
Byju’s, Physics Wallah, Aakash, Esaral have seen exceptional
success in their high school based courses. Many companies are
also planning to integrate AI into their products to further amplify
the benefits of online education.
Challenges Of Access
Despite its benefits, the deployment of AI in education also poses
challenges related to access and equity. Students from
underprivileged backgrounds may lack access to advanced
educational technologies, further widening the digital divide.
Policymakers must address these disparities to ensure that all
students can benefit from AI enhanced educational tools.
AI in Finances
AI is making significant strides in the financial sector, particularly in trading and
investment strategies. Here are some real-world examples of how specific
companies are utilizing AI technologies to enhance their operations:
Trading And Investment
Algorithm Trading
AI is at the core of algorithmic trading, enabling firms to execute high-
frequency trades based on real-time data analysis. For instance, firms like
Renaissance Technologies use proprietary algorithms to analyze market data
and identify brief opportunities for profit. This high-frequency approach
showcases AI’s ability to enhance trading efficiency by capitalizing on even
small price changes
Sentiment Analysis
In addition to trading algorithms, AI-driven sentiment analysis allows firms to
assess market sentiment by analyzing news, social media, and other real-time
information. Companies like Goldman Sachs use sentiment analysis to
anticipate shifts in the market, adjusting their trading strategies accordingly
when significant news impacts stock prices. This quick adaptability is crucial in
fast-moving markets
Portfolio Optimization
AI helps firms optimize investment portfolios by evaluating risk factors and
market trends. BlackRock, for example, uses its Aladdin platform, powered by
machine learning, to inform asset allocation decisions and support portfolio
managers in aligning investment strategies with client objectives. This AI-driven
approach to portfolio management is increasingly used across asset
management
Business Compliance
Regulatory Monitoring
Compliance is a complex area where AI can significantly streamline processes.
Firms like JPMorgan Chase leverage AI tools such as natural language
processing (NLP) to analyze legal documents and automate regulatory
monitoring, reducing the manual workload involved in keeping up with
compliance standards. This application is essential as financial regulations
grow in complexity
Customer Service
AI Chatbots
Customer service in finance is becoming more efficient with AI-driven virtual
assistants. For example, Bank of America’s virtual assistant, Erica, helps
customers manage transactions, resolve issues, and receive financial guidance
through natural language processing. By handling routine inquiries, Erica frees
up human agents for more complex tasks, improving overall service quality and
customer satisfaction
03
Ethical
Considerations
Biasness And Fairness
AI often reflects biases present in its training data, leading to discriminatory
outcomes in fields like hiring and lending. For instance, Amazon's AI
recruitment tool was found to disadvantage female applicants, highlighting
issues with gender bias rooted in historical hiring patterns. Similarly, Apple
Card faced backlash after some women reportedly received lower credit limits
than men with similar financial profiles. These cases emphasize the need for
transparency and ethical oversight to ensure AI systems promote fairness rather
than reinforcing social inequalities.
Misinformation Risks
Generative AI tools, such as deepfakes, raise concerns over misinformation, as
they can create highly realistic but false content that misleads the public. This
capability has implications for elections and social issues, where fabricated
narratives can spread rapidly. Additionally, social media platforms like
Facebook use AI-driven recommendation algorithms that often amplify
sensational or misleading content, contributing to polarization by feeding users
information that aligns with their preexisting views.
Addressing these ethical challenges requires collaboration between tech
developers, ethicists, and policymakers. Establishing clear guidelines and
prioritizing transparency in AI development can help mitigate these issues,
promoting responsible use of AI that fosters fairness and trust.
Survey Reports
We carried out a survey to gather insights on
people's opinions about AI, its applications,
and the frequency of its use.
How familiar are you with Do you believe that AI can
“Artificial Intelligence”? improve your productivity at
work or in personal life?
Not familiar Not at all
8% 8%
Yes significantly
Very familiar 42%
42%
Somewhat
50%
Somewhat familiar
50%
Do you use AI-powered
applications (healthcare
tools, financial advisors, or
educational platforms) in
your daily life?
No
17%
Yes
Rarely
58%
25%
Have you ever heard of an AI How concerned are you about AI-
that can analyse market driven job displacement I'm
trends ? They can left uplift industries impacted by
the finance of the automation?
government ?
Not concerned Very concerned
8.3%
16.7%
Yes
25%
Maybe
50%
No
25%
Slightly concerned
75%
Impact of AI on various fields
Healthcare
Retail
Finance
Manufacturing
Education
All of the above
0 10 20 30 40 50
09
Conclusion
The prospective future of AI
AI, ML, and LLMs offer transformative potential for socioeconomic progress
but also bring challenges like job displacement, inequality, and ethical
concerns. To ensure these technologies benefit society broadly, a
collaborative approach is needed—one that involves policymakers, industry,
and communities working together to promote fairness, inclusivity, and
reskilling. As we move forward, it’s essential to balance innovation with ethical
responsibility, creating a future where technological advances improve quality
of life without compromising equity.
