What Should Governments Do in the Age of Artificial Intelligence—A Schumpeterian Growth Paradigm Perspective

Artificial intelligence represents the latest form of automation technology and has been increasingly integrated into various sectors of production and services. Based on the mechanism of the “Schumpeterian growth paradigm”, this paper predicts that the artificial intelligence revolution will, similar to the historical electricity revolution and information technology revolution, enhance corporate productivity and increase the potential for economic growth. However, this technological revolution may also lead to a Schumpeterian growth dilemma, exacerbating income inequality and imposing significant disruptions on the economic development and social fabric of nations worldwide. Consequently, governments must implement a series of policy measures to address these challenges, including fostering industrial policies that encourage innovation and competition, improving educational systems, strengthening social security frameworks, balancing income redistribution, and promoting multi-dimensional international cooperation.