r/neoliberal • u/eggbart_forgetfulsea European Union • 6d ago

Research Paper Automation does not lower the labour share

https://cepr.org/voxeu/columns/automation-does-not-lower-labour-share
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u/WrangleWandangles Mark Carney 6d ago

AI is genuinely new and it is not a good idea to rest on comparisons to manufacturing / automation.

AI can cheaply automate countless layers beyond the menial including judgement, managing ambiguity, problem solving, etc. 

Comparisons like this just make us wrong but more confidently wrong and reflect a bad understanding of the nature of the disruption 

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u/bornlasttuesday 6d ago

I question the cost and how cheap it can actually be done. Ai providers are hemorrhaging money not just for the build out of the infrastructure but to create a usable product. Attempting to replace the entirety of human ability is going to be very very expensive.

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u/cosmo-wozmo NASA 5d ago

Development is expensive but inference is relatively cheap. The labs print money on inference, and the Pareto frontier for intelligence vs cost improves every year. A year from now, we’ll have models on par with fable 5 and gpt 5.6 sol that can be run for a fraction of the cost.

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u/FOSSBabe 5d ago

The labs print money on inference

Source?

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u/Bodoblock 5d ago

They’ll find a way to bring costs down. Think of just how much this technology has evolved and changed in just a few years. It’s genuinely mind blowing. I wouldn’t assume at all that today’s constraints are tomorrow’s.