Overall impact of AI developments on human workers remains unclear
Determine the labor-market impact of artificial intelligence (AI) and related learning-machine developments on human workers across sectors and occupations, including effects on employment and wages.
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While the number of tasks that learning machines can undertake is rapidly increasing and their diffusion is currently accelerating in many sectors of the economy, the impact these developments will have on human workers is still unclear (1).
The more important question is whether the number of new jobs and opportunities created by AI will exceed the number of jobs lost through automation and creative destruction. The framework developed in this appendix suggests that the answer depends on the relative magnitudes of $n$ and $K$. If AI generates sufficient entrepreneurship, innovation, new industries, and new forms of productive activity, then the dynamic job-creation effect may outweigh the job-destruction effect. Historical experience with previous waves of technological progress suggests that this outcome is plausible and perhaps even likely, although the magnitude and timing of these effects remain central questions in the economics of Artificial Intelligence.