Episode #16
Episode 16 - Can We Afford the AI Revolution?
In this episode of We Can Work It Out , Dr Jonathan Lord is joined by Professor Richard Whittle, Professor of AI and Public Policy at the University of Salford, to explore one of the defining questions of our time: how should we understand the economics of generative AI, and who ultimately pays for its promises? Drawing on his background as an economist, Richard explains how his research has evolved from studying financial markets and asset price bubbles to examining the impact of artificial intelligence on work, public policy and the wider economy. Rather than focusing solely on what AI can do, the discussion considers the economic forces driving its rapid adoption and whether the current business model behind generative AI is financially sustainable. The episode explores the distinction between traditional artificial intelligence and generative AI, examining why the arrival of tools such as ChatGPT represents a fundamental shift in how organisations and individuals interact with technology. Richard discusses why today's AI services appear remarkably inexpensive and argues that current pricing reflects a strategy of rapid market expansion rather than the true cost of providing these systems. The conversation considers what could happen if businesses become dependent on AI platforms before significant price increases begin. The conversation also examines the implications for the public sector, where governments increasingly view AI as a mechanism for improving efficiency and reducing costs. Richard discusses examples from local government, education and healthcare, questioning whether AI-generated savings are being reinvested to improve public services or simply used to reduce expenditure. The discussion considers how artificial intelligence exposes wider structural problems within public services, including decades of underinvestment, workforce pressures and increasing demand. Jonathan and Richard explore the potential impact of AI on employment, productivity and future skills. Rather than predicting widespread job losses, Richard focuses on the longer-term consequences of replacing entry-level work with automation, asking how organisations will develop future experts if junior employees no longer gain the experience traditionally required to build professional judgement. The discussion highlights the importance of education, interdisciplinary thinking and maintaining human expertise alongside technological development. The episode also considers wider questions surrounding regulation, ethics and national sovereignty. Richard examines the dominance of a small number of global AI companies, the implications of relying on overseas technology providers and the challenges governments face in regulating rapidly evolving systems. The conversation touches on issues including copyright, data protection, inequality, AI literacy and whether access to advanced AI should eventually be considered a public utility. Finally, Richard outlines the key questions every organisation should ask before embedding AI into its operations, including whether current business models remain viable if AI prices rise significantly, how organisations can maintain human expertise alongside automation, and how AI will reshape competition across different sectors. Throughout the episode, he argues that the most important question is not simply what AI can do today, but what the long-term costs of today's short-term efficiency savings may be. This episode offers a thought-provoking examination of the economic realities behind generative AI and explores what its rapid adoption means for workers, employers, policymakers and the future of work. Enjoy the discussion.
