Abstract

We welcome changes that disrupt order. Those who correctly understand the significance of revolution have a future. A master of information economics foresees the upheaval in society. What kind of world will generative AI create? A multifaceted depiction. ◆The "world without generative AI" will end. The "world with generative AI" will begin. In the coming era, human intellectual activity will be completely different. ◆The revolution is already underway. There has never been a new technology that has spread so quickly. Moreover, generative AI is a general-purpose technology that is used for many purposes. There will be major changes in social structure. ◆Companies that do not accept the disruptive changes in labor productivity caused by the use of generative AI will face catastrophic cost increases and will be at a disadvantage in terms of innovation. Companies should start preparing now. Reconstructing business models and changing working styles to incorporate AI into workflows - now is the time for business leaders to start internal innovation. ◆The greatest danger is to underestimate or turn your back on this technology. If Japan fears change and does not adopt new technologies, it will fall decidedly behind global progress.

Author’s Information

Born in Tokyo in 1940. Graduated from the Faculty of Engineering at the University of Tokyo in 1963. Joined the Ministry of Finance in 1964. Received a Ph.D. (PhD in Economics) from Yale University in 1972. Served as a professor at Hitotsubashi University, a professor at the University of Tokyo (Director of the Center for Advanced Economic Engineering Research), a visiting professor at Stanford University, and a professor at Waseda University, before becoming a professor emeritus at Hitotsubashi University. His specialty is Japanese economics. Recent works include The Day Japan Falls Away from its Developed Nation status (President Inc., Okakura Tenshin Prize winner), Japan in 2040 (Gentosha Shinsho), Super-Super Study Methods (President Inc.), The Bank of Japan's Responsibility (PHP Shinsho), Poor Japan (Asahi Shinsho), Super Creativity Methods (Gentosha Shinsho), and Can the Japanese Economy Revive? (SB Shinsho), among many others.