AI and Shared Prosperity

TL;DR

This paper presents a framework to analyze how AI impacts labor markets and inequality by balancing labor demand creation and displacement, considering societal wealth effects to promote shared prosperity.

Contribution

It introduces a novel analytical framework that assesses AI's effects on labor demand and inequality, guiding ethical deployment and policy decisions.

Findings

Framework enables analysis of AI's impact on labor demand and inequality

Highlights importance of balancing AI-driven productivity gains with labor market effects

Supports steering AI development towards inclusive economic growth

Abstract

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.