The AI industry is helping to drive economic growth, but it’s also widening the gap between the rich and the poor. In San Francisco, the Richmond Neighborhood Center has a waitlist of over 200 people for its food pantry, despite being just a couple of miles from the city’s thriving AI hub.

Economic Inequality

The US economy grew at a 2.1% annualized rate in the first quarter, largely due to businesses investing in AI. However, consumer sentiment is near record lows, and the bottom quarter of Americans have seen the weakest wage growth this year. The demand for the Richmond Neighborhood Center’s food pantry is up 10% this year.

Experts say that AI is playing a significant role in the diverging fortunes of the poorest and wealthiest Americans. The billions poured into the AI industry have created a cadre of highly paid workers, but it’s also exacerbating the economy of winners and losers. The winners are those involved in the development and funding of AI, while those losing out are vast swaths of Americans, including recent college graduates and low-income Americans.

Impact on Local Communities

The AI industry is also affecting local communities, with many small businesses struggling to compete. The health of Main Street businesses is being skewed by the AI hype, with business investment falling if you exclude AI. This is having a ripple effect on the local economy, with many people feeling the sting of higher inflation and struggling to make ends meet.

Original reporting: El Paso News (HLL/CB) — read the source article.