Final answer:
Advanced computer controls and AI have increased global GDP potential but pose a risk to jobs, widening the wage gap and leading to the outsourcing of labor. High-skill workers benefit from increased demand, while low-skill workers face reduced opportunities due to automation.
Step-by-step explanation:
The application of advanced computer controls and new manufacturing technologies has had a significant impact on labor costs. The advent of Artificial Intelligence (AI) and automation has led to a potential increase in global GDP, as noted by Goldman Sachs; however, it poses a risk to labor markets, with up to 300 million jobs worldwide being threatened. This technological advancement has contributed to the widening wage gap between high-skill and low-skill workers. High-skill workers have seen an increase in pay due to the demand for their expertise in managing and developing new technologies.
Conversely, low-skill workers have experienced a decrease in pay or job displacement because many routine tasks are now automated. This has also led to the outsourcing of various jobs to countries with lower labor costs and to a transition towards an information economy with digital products that require fewer physical manufacturing resources.
Overall, the introduction of new technologies in manufacturing has resulted in increased labor efficiency but also caused shifts in the labor market, necessitating that workers adapt to the changing nature of work. Regulations and guidelines are crucial in managing this transition to minimize the negative impacts on the workforce.