Generative AI may create a socioeconomic tipping point through labour displacement
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View abstract on PubMed
Summary
This summary is machine-generated.Generative artificial intelligence (AI) could double labor underutilization and decrease income by 26% by 2050. Urgent government intervention is needed to manage AI's economic impact and safeguard national mental wealth.
Area Of Science
- Economics
- Sociology
- Artificial Intelligence
Background
- Work is vital for societal prosperity and mental health.
- Job insecurity and unemployment are known risks for mental health.
- Generative artificial intelligence (AI) sparks debate on job displacement and well-being.
Purpose Of The Study
- To explore AI's impact on job displacement and economic stability.
- To analyze the potential for AI-driven recessionary pressures.
- To examine the conditions for maintaining job security and economic stability in an AI-dominated economy.
Main Methods
- Developed a system dynamics model for ex ante analysis.
- Utilized Australian data as a case study.
- Examined the effect of AI-capital deepening on labor underutilization and demand.
Main Results
- A moderate increase in AI-capital-to-labour ratio could double labor underutilization by mid-2050.
- Per capita disposable income may decrease by 26% and consumption by 21%.
- A 10.8-fold increase in new job creation is needed to prevent income reduction.
Conclusions
- High AI-capital-to-labour ratios risk economic decline, even with high job creation.
- Economies must research AI's impact within specific contexts.
- Cross-sectoral government measures are crucial for a smooth AI transition and safeguarding national mental wealth.
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