AI can help address America’s affordability crisis
It’s no surprise that 40 percent of voters list cost-of-living concerns as their No. 1 issue for the upcoming midterms. When bills come due — child care, urgent care, gas, groceries and rent — more than half of American families are economically insecure. They’re struggling to save for the future, and invest in themselves and their loved ones. To try to make ends meet, they’re picking up extra jobs, forgoing treatments and seeking loans from friends. This “affordability crisis” is becoming a major talking point for both parties, who are quick to blame the other for this problem.
What both parties should agree on is that technological solutions could help address the cost of living. This is where artificial intelligence, automated systems and robotics can play a major role in reducing prices.
For that to happen, however, policymakers need to embrace these technological advances instead of attempting to stall them. They should recognize that AI-enabled capabilities could help counter major cost drivers, especially in sectors like health care and transportation.
For example, a plurality of Americans with health issues (44 percent) cannot afford proper care. The resulting toll on their mental and physical well-being has personal and societal costs. A healthier community is a more productive, creative, and efficient one. AI carries the potential to reduce the frequency of many of the expensive, avoidable issues that ail many people.
Two case studies make this clear. First, an increasing number of digital health tools help health care providers detect early signs of worsening symptoms for those with chronic diseases. Early detection may prevent emergency room visits, which can break the bank, as the average visit costs around $3,000. While these tools are not perfect, it’s worth remembering that today’s AI is the worst you’ll use. What’s more, perfection should not be our standard — 100 million Americans lack a primary care physician. In this care gap, we should welcome the availability of verified, affordable AI-enabled services.
Second, AI tools are empowering doctors to spot diseases at earlier stages, which reduces the need for more invasive (and expensive) treatments. From kidney disease to Alzheimer’s, companies have refined AI products to detect problems more accurately. AI tools are also helping doctors and hospitals treat such diseases more efficiently. Hospitals that have integrated Diligent Robotics’ AI tools report substantial operational efficiencies — some as high as 40 percent.
The possibility for AI to facilitate a safer, more affordable future is also playing out in transportation. Imagine if transportation departments proactively spot hazards before they cause traffic jams. That is unfolding in Dubai thanks to Nota AI. This tool analyzes traffic cam footage to spot such hazards, pinpoint their location, and send support. Given that the average American spends more than $2,000 annually on gas, anything that can prevent gas-guzzling pileups can have a real financial impact on everyday Americans.
Of course, AI is also contributing to improvements in autonomous vehicles that are considerably safer than human drivers. Analysis of how Waymo vehicles perform compared to human drivers in the cities where it operates reveals major safety benefits. Compared to human drivers, autonomous vehicles led to 92 percent fewer crashes with injuries to pedestrians and 82 percent fewer crashes with injuries to cyclists.
These improvements, if spread across more cities, could chip away at a horrifying reality: 40,000 people died from motor vehicle crashes in 2023. In addition to the death toll, traffic incidents account for hundreds of billions of dollars in costs each year — approximately $340 billion in 2019 alone. No wonder car insurance premiums are surging.
These case studies make up just a fraction of the ways AI can help us live better lives at less expense. AI will drive down the cost of lawyers, tutors, career advising, and so many other domains, if we let it. Some politicians will counter that AI could drive up costs in other ways, especially through electricity prices. AI, though, is often a scapegoat for politicians looking to blame one thing for complex problems.
As NPR reported, the costs of electricity have been increasing since 2020 (before the current AI wave). And while demand for electricity due to AI is a contributing factor to sustaining that trend, other factors are very much at play. Some of these additional costs, such as power being wasted due to poor grid management, could actually be lessened by AI.
The upshot is that advances in AI and integration of AI into more parts of our economy has the potential to help with affordability concerns held by many voters.
Unfortunately, there are significant threats to these necessary AI advances. Sen. Josh Hawley (R-Mo.), for instance, has proposed a ban on autonomous vehicles, citing safety concerns. Sen. Edward Markey (D-Mass.) wants to mandate that humans “be in the loop” in certain medical settings. While these measures may be well-intentioned, they are grounded in outdated technological assumptions.
State legislatures seem poised to follow suit. In California, Gov. Gavin Newsom (D) recently signed dozens of AI-specific bills. In Colorado, legislators passed an expansive AI bill so laden with ambiguity that its enforcement has been serially delayed. In Illinois, state leaders have boasted about banning entire use-cases for AI. These efforts threaten the ability of innovators to move forward with AI that could significantly lower the cost of living.
It should not be taken for granted that autonomous vehicles will continue to improve or that AI digital health tools will become even more accurate — at least not in the United States. Excessive red tape, barriers to entering markets, and boxes to check before deploying AI tools will delay Americans accessing life-saving technology that will develop elsewhere.
There are many factors that affect affordability, and no single silver-bullet solution exists. Complex problems require multiple solutions. Nonetheless, AI and autonomous systems can help put positive downward pressure on prices and simultaneously expand the range of options available to society — but only if policymakers let it happen.