Abstract The current wave of technological change based on advancements in artificial intelligence (AI) has created widespread fear of job loss and further rises in inequality. This paper discusses the rationale for these fears, highlighting the specific nature of AI and comparing previous waves of automation and robotization with the current advancements made possible by a widespread adoption of AI. It argues that large opportunities in terms of increases in productivity can ensue, including for developing countries, given the vastly reduced costs of capital that some applications have demonstrated and the potential for productivity increases, especially among the low skilled. At the same time, risks in the form of further increases in inequality need to be addressed if the benefits from AI-based technological progress are to be broadly shared. For this, skills policies are necessary but not sufficient. In addition, new forms of regulating the digital economy are called for that prevent further rises in market concentration, ensure proper data protection and privacy, and help share the benefits of productivity growth through the combination of profit sharing, (digital) capital taxation, and a reduction in working time. The paper calls for a moderately optimistic outlook on the opportunities and risks from AI, provided that policymakers and social partners take the particular characteristics of these new technologies into account.

Ekkehardt Ernst

Rossana Merola

Daniel Samaan

IZA Journal of Labor Policy

The IZA Journal of Labor Policy publishes scientific articles that are relevant for policy-making. This refers to papers addressing the impact of institutional settings and policy interventions on labor market outcomes, both from a theoretical as well as from an empirical point of view. In addition, the IZA Journal of Labor Policy publishes literature reviews and meta-analyses that synthesize existing research on policy relevant issues.

The IZA Journal of Labor Policy publishes scientific articles that are relevant to policy-making. These articles address the impact of institutional settings and policy interventions on labor market outcomes, from both theoretical and empirical perspectives. Additionally, the IZA Journal of Labor Policy publishes literature reviews and meta-analyses that synthesize existing research on policy-relevant issues.

IZA Journal of Labor Policy 发表与政策制定相关的科学文章。这些文章探讨制度环境和政策干预对劳动市场结果的影响，既包括理论分析，也包括实证研究。此外，IZA Journal of Labor Policy 还发表文献综述和元分析，综合现有关于政策相关问题的研究。

Economics of Artificial Intelligence: Implications for the Future of Work

ivySCI AI Smartly Parses PDF, Answers Researchers' Questions, and Helps You Understand Papers in Seconds

Journal Info

Category	Quartile
INDUSTRIAL RELATIONS & LABOR	3