Artificial Intelligence, Automation and Work

This paper makes the case that ultimately whether AI displaces labour, or creates other effects which counter it, is still a subject of great debate.

The paper summarises a framework for the study of the implications of automation and AI on the demand for labor, wages, and employment. It suggests that as tasks are replaced by automation this displacement effect tends to reduce the demand for labor and wages. But in this model this is counteracted by a productivity effect, resulting from the cost savings generated by automation, which increase the demand for labor in non-automated tasks. The productivity effect is complemented by additional capital accumulation and the deepening of automation (improvements of existing machinery), both of which further increase the demand for labor.

Download Here

Chosen by

Chris Pissarides

Theme

Workers in transition

Related files

Download Here

Sign up to our newsletter

We would love to stay in touch.

Our newsletters and updates let you know what we’ve been up to, what’s in the pipeline, and give you the chance to sign up for our events.

You can unsubscribe at anytime by clicking the link at the bottom of our emails or by emailing data@ifow.org. Read our full privacy policy including how your information will be stored by clicking the link below.