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by qgin
120 days ago
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You don't need AI to replace whole jobs 1:1 to have massive displacement. If AI can do 80% of your tasks but fails miserably on the remaining 20%, that doesn't mean your job is safe. It means that 80% of the people in your department can be fired and the remaining 20% handle the parts the AI can't do yet. |
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> The most important thing to know about labor substitution...is this: labor substitution is about comparative advantage, not absolute advantage. The question isn’t whether AI can do specific tasks that humans do. It’s whether the aggregate output of humans working with AI is inferior to what AI can produce alone: in other words, whether there is any way that the addition of a human to the production process can increase or improve the output of that process... AI can have an absolute advantage in every single task, but it would still make economic sense to combine AI with humans if the aggregate output is greater: that is to say, if humans have a comparative advantage in any step of the production process.