Related papers: Augmented Human Capital: A Unified Theory and LLM-…

This paper establishes the theoretical and practical foundations for using Large Language Models (LLMs) as measurement instruments for latent economic variables -- specifically variables that describe the cognitive content of occupational…

Society 5.0 and Industry 5.0 call for human-centric technology integration, yet the concept lacks an operational definition that can be measured, optimized, or evaluated at the firm level. This paper addresses three gaps. First, existing…

A natural intuition about the economics of AI agents is that, because agents can be replicated at very low marginal cost, agent labor may be supplied highly elastically, placing downward pressure on cognitive-labor wages when it closely…

Generative AI is rapidly reshaping creative work, raising critical questions about its beneficiaries and societal implications. This study challenges prevailing assumptions by exploring how generative AI interacts with diverse forms of…

The deployment of Large Language Models (LLMs) has ignited concerns about technological unemployment. Existing task-based evaluations predominantly measure theoretical "exposure" to AI capabilities, ignoring critical frictions of real-world…

Artificial intelligence is increasingly embedded in human decision making. In some cases, it enhances human reasoning. In others, it fosters excessive cognitive dependence. This paper introduces a conceptual and mathematical framework to…

Large language models (LLMs), such as LLaMA, Alpaca, Vicuna, GPT-3.5 and GPT-4, have advanced the performance of AI systems on various natural language processing tasks to human-like levels. However, their generalisation and robustness when…

The rise of Generative AI, and Large Language Models (LLMs) in particular, is fundamentally changing cognitive processes in knowledge work, raising critical questions about their impact on human reasoning and problem-solving capabilities.…

Experimental evidence confirms that AI tools raise worker productivity, but also that sustained use can erode the expertise on which those gains depend. We develop a dynamic model in which a decision-maker chooses AI usage intensity for a…

This paper examines whether artificial intelligence (AI) acts as a substitute or complement to human labour, drawing on 12 million online job vacancies from the United States spanning 2018-2023. We adopt a two-pronged approach: first,…

We formalize a macro-financial stress test for rapid AI adoption. Rather than a productivity bust or existential risk, we identify a distribution-and-contract mismatch: AI-generated abundance coexists with demand deficiency because economic…

Artificial intelligence (AI) is reshaping the labor market by changing the task content of occupations. This study investigates the impact of AI development on the emergence of new work, employment, and wages in the United States from 2015…

Human capital (HC) is increasingly important to corporate value creation. Unlike other assets, however, HC is not currently subject to well-defined measurement or disclosure rules. We use a machine learning algorithm (word2vec) trained on a…

Task-based models of AI and labor hold organizational structure fixed. We introduce agent capital: AI that reduces coordination costs, expanding spans of control and enabling endogenous task creation. Five propositions characterize how…

We develop a unified microeconomic and monetary theory of artificial intelligence inference costs and their pass-through to inflation, welfare, and optimal monetary policy. We introduce the Inference-Cost Phillips Curve (ICPC), an augmented…

This study investigates the structural embeddedness of skills in the division of labor. Drawing on O*NET data covering 120 skills across 872 U.S. occupations, we identify three skill communities: general, cognitive, and physical skills.…

We are entering an era in which humans will increasingly work in partnership and collaboration with artificially intelligent entities. For millennia, tools have augmented human physical and mental performance but in the coming era of…

Large Language Model (LLM) based agents excel at general reasoning but often fail in specialized domains where success hinges on long-tail knowledge absent from their training data. While human experts can provide this missing knowledge,…

Large language models (LLMs) hold potential for innovative HCI research, including the creation of synthetic personae. However, their black-box nature and propensity for hallucinations pose challenges. To address these limitations, this…

The emergence of Artificial General Intelligence (AGI) labor, including AI agents and autonomous systems operating at near-zero marginal cost, reduces the marginal productivity of human labor, ultimately pushing wages toward zero. As AGI…