MIT News  December 6, 2024 Researchers at MIT evaluated claims about the large macroeconomic implications of new advances in AI. So long as AI’s microeconomic effects are driven by cost savings/productivity improvements at the task level, its macroeconomic consequences will be given by Gross Domestic Product (GDP) and aggregate productivity gains can be estimated by what fraction of tasks are impacted and average task-level cost savings. Predicted TFP gains over the next 10 years could be modest. They showed theoretically that even when AI improves the productivity of low-skill workers in certain tasks it may increase rather than reduce inequality. Empirically, […]