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The wrong kind of AI? Artificial intelligence and the future of labour demand

Author

Listed:
  • Daron Acemoglu
  • Pascual Restrepo
Abstract
Artificial intelligence (AI) is set to influence every aspect of our lives, not least the way production is organised. AI, as a technology platform, can automate tasks previously performed by labour or create new tasks and activities in which humans can be productively employed. Recent technological change has been biased towards automation, with insufficient focus on creating new tasks where labour can be productively employed. The consequences of this choice have been stagnating labour demand, declining labour share in national income, rising inequality and lowering productivity growth. The current tendency is to develop AI in the direction of further automation, but this might mean missing out on the promise of the ‘right’ kind of AI, with better economic and social outcomes.

Suggested Citation

  • Daron Acemoglu & Pascual Restrepo, 2020. "The wrong kind of AI? Artificial intelligence and the future of labour demand," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 13(1), pages 25-35.
    • Handle: RePEc:oup:cjrecs:v:13:y:2020:i:1:p:25-35.
    as

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    File URL: http://hdl.handle.net/10.1093/cjres/rsz022
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    References listed on IDEAS

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    More about this item

    Keywords

    automation; artificial intelligence; jobs; inequality; innovation; labour demand; productivity; tasks; technology; wages;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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