Societal Adaptation to AI Human-Labor Automation

Abstract: AI is transforming human labor at an unprecedented pace - improving 10$\times$ per year in training effectiveness. This paper analyzes how society can adapt to AI-driven human-labor automation (HLA), using Bernardi et al.'s societal adaptation framework. Drawing on literature from general automation economics and recent AI developments, the paper develops a "threat model." The threat model is centered on mass unemployment and its socioeconomic consequences, and assumes a non-binary scenario between full AGI takeover and swift job creation. The analysis explores both "capability-modifying interventions" (CMIs) that shape how AI develops, and "adaptation interventions" (ADIs) that help society adjust. Key interventions analyzed include steering AI development toward human-complementing capabilities, implementing human-in-the-loop requirements, taxation of automation, comprehensive reorientation of education, and both material and social substitutes for work. While CMIs can slow the transition in the short-term, significant automation is inevitable. Long-term adaptation requires ADIs - from education reform to providing substitutes for both the income and psychological benefits of work. Success depends on upfront preparation through mechanisms like "if-then commitments", and crafting flexible and accurate regulation that avoids misspecification. This structured analysis of HLA interventions and their potential effects and challenges aims to guide holistic AI governance strategies for the AI economy.