Top economist Mohamed El-Erian is excited about AI, saying the technology is an 'equalizer' - but warns overconsumption can cause havoc

• Top economist Mohamed El-Erian is excited about AI - but warned of risks that come with the groundbreaking technology. 
• "Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety," he said. 
• El-Erian said AI can hugely benefit developing economies, but overconsumption could cause havoc. 

Renowned economist Mohamed El-Erian is excited about artificial intelligence - but warned that overconsumption of the technology can lead to chaos. 

Speaking in a CNN interview on Tuesday, the former PIMCO chief said AI is more of an "equalizer" given its low barrier of entry, which could be highly beneficial for low-income groups and developing economies. But there are also risks that come along with such easy accessibility. 

"Like every innovation, you get two reactions. The first reaction is you get a balance of excitement and anxiety. Excitement at what this technology allows, and generative AI allows a lot of customization in education, but also fear as to what it enables," El-Erian said, adding that the onset of a calculator sparked concern that people would lose the ability of mental arithmetic. 

"By reducing a barrier to entry, which AI does in a very powerful manner, people overproduce it and overconsume it," he added. 

"But I'm generally excited. I'm excited because AI is an equalizer more than it is an un-equalizer. It can provide a lot more opportunity for people, both the lower income groups within the western economy, but especially those in developing countries," El-Erian said. 

He warned against overusing AI so that it doesn't create "havoc and bad things," El-Erian added. 

AI has seen much hype since the successful debut of OpenAI's ChatGPT. The investor frenzy around technology stocks it's fueled has helped lift the Nasdaq by a staggering 37% so far this year, and boosted the wealth of several tech leaders.