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Participants in recent discussions of AI-related issues ranging from intelligence explosion to technological unemployment have made diverse claims about the nature, pace, and drivers of progress in AI. However, these theories are rarely…
Does technological change destroy or create jobs? New technologies may replace human workers, but can simultaneously create jobs if workers are needed to use these technologies or if new economic activities emerge. Furthermore,…
AI models that predict the future behavior of a system (a.k.a. predictive AI models) are central to intelligent decision-making. However, decision-making using predictive AI models often results in suboptimal performance. This is primarily…
We explore the nonlinear dynamics of a macroeconomic model with resource constraints. The dynamics is derived from a production function that considers capital and a generalized form of energy as inputs. Energy, the new variable, is…
Economic growth depends on capital investments and on investments in education and innovation. The model introduced here will specifiy aggregate output as determined by aggregate supply of capital and education investment. After formulating…
Many researchers work on improving the data efficiency of machine learning. What would happen if they succeed? This paper explores the social-economic impact of increased data efficiency. Specifically, we examine the intuition that data…
This position paper argues that adopting AI in organizational practice does not guarantee productivity gains, because human and environmental factors critically moderate the relationship between AI deployment and realized productivity…
The origin of economic crises is a key problem for economics. We present a model of long-run competitive markets to show that the multiplicity of behaviors in an economic system, over a long time scale, emerge as statistical regularities…
Artificial Intelligence's (AI) rapid development and growth not only transformed industries but also fired up important debates about its impacts on employment, resource allocation, and the ethics involved in decision-making. It serves to…
This study examines the relationship between automation and income inequality across different countries, taking into account the varying levels of technological adoption and labor market institutions. The research employs a panel data…
This paper analyzes how expectations of Transformative AI (TAI) affect current economic behavior by introducing a novel mechanism where automation redirects labor income from workers to those controlling AI systems, with the share of…
Generative Artificial Intelligence (AI) tools are rapidly adopted in the workplace and in education, yet the empirical evidence on AI's impact remains mixed. We propose a model of human-AI interaction to better understand and analyze…
Artificial intelligence (AI) is advancing exponentially and is likely to have profound impacts on human wellbeing, social equity, and environmental sustainability. Here we argue that the "alignment problem" in AI research is also an…
Generative AI is altering work processes, task composition, and organizational design, yet its effects on employment and the macroeconomy remain unresolved. In this review, we synthesize theory and empirical evidence at three levels. First,…
Recent advances in generative AI systems have dramatically reduced the cost of digital production, fueling narratives that widespread participation in software creation will yield a proliferation of viable companies. This paper challenges…
With the phenomenal rise of generative AI models (e.g., large language models such as GPT or large image models such as Diffusion), there are increasing concerns about human creatives' futures. Specifically, as generative models' power…
This paper develops a new model of business cycles. The model is economical in that it is solved with an aggregate demand-aggregate supply diagram, and the effects of shocks and policies are obtained by comparative statics. The model builds…
What looks like acceleration can be a quiet transfer of burden from the present to the future. Attempts to replace human labor with AI systems are often presented as rational responses to technological progress, but that view is often…
The fast pace of artificial intelligence (AI) and automation is propelling strategists to reshape their business models. This is fostering the integration of AI in the business processes but the consequences of this adoption are…
We consider in a market model the cooperative emergence of value due to a positive feedback between perception of needs and demand. Here we consider also a negative feedback from production of the traded products, and find that this…