AI and Shared Prosperity
This addresses labor market and inequality concerns for ethically-minded companies, researchers, and policymakers, but it is incremental as it builds on existing economic analysis without introducing new empirical data or methods.
The paper tackles the problem of AI automation's impact on labor markets and inequality by proposing a framework to analyze labor demand creation versus displacement, enabling stakeholders to steer AI progress toward shared prosperity.
Future advances in AI that automate away human labor may have stark implications for labor markets and inequality. This paper proposes a framework to analyze the effects of specific types of AI systems on the labor market, based on how much labor demand they will create versus displace, while taking into account that productivity gains also make society wealthier and thereby contribute to additional labor demand. This analysis enables ethically-minded companies creating or deploying AI systems as well as researchers and policymakers to take into account the effects of their actions on labor markets and inequality, and therefore to steer progress in AI in a direction that advances shared prosperity and an inclusive economic future for all of humanity.