What is Jevons Paradox?
Jevons Paradox is an economic concept that explains why making something more efficient can sometimes lead to more consumption rather than less. It was first observed by economist William Stanley Jevons in 1865 when he noticed that improvements in coal-burning steam engines didn’t reduce coal consumption—instead, they made coal-powered technology more useful, increasing demand and overall coal use.
How Does This Apply to AI?
In AI, Jevons Paradox suggests that as AI models become more efficient—meaning they require less computing power, cost less to train, or operate faster—more people and businesses will start using them. Instead of reducing energy and resource consumption, these improvements may lead to even greater adoption of AI across industries, ultimately increasing overall demand for computing resources.
