Rebalancing AI-Daron Acemoglu Simon Johnson

The drive toward automation is perilous-to support shared prosperity, AI must complement workers, not replace them Optimistic forecasts regarding the growth implications of AI abound. AI adoption could boost productivity growth by 1.5 percentage points per year over a 10-year period and raise global GDP by 7 percent ($7 trillion in additional output), according to Goldman Sachs . Industry insiders offer even more excited estimates , including a supposed 10 percent chance of an “explosive growth” scenario, with global output rising more than 30 percent a year. All this techno-optimism draws on the “productivity bandwagon”: a deep-rooted belief that technological change-including automation-drives higher productivity, which raises net wages and generates shared prosperity.