Toward understanding the impact of artificial intelligence on labor

Edited by Jose A. Scheinkman, Columbia University, New York, NY, and approved February 28, 2019 (received for review January 18, 2019)
March 25, 2019
116 (14) 6531-6539

Abstract

Rapid advances in artificial intelligence (AI) and automation technologies have the potential to significantly disrupt labor markets. While AI and automation can augment the productivity of some workers, they can replace the work done by others and will likely transform almost all occupations at least to some degree. Rising automation is happening in a period of growing economic inequality, raising fears of mass technological unemployment and a renewed call for policy efforts to address the consequences of technological change. In this paper we discuss the barriers that inhibit scientists from measuring the effects of AI and automation on the future of work. These barriers include the lack of high-quality data about the nature of work (e.g., the dynamic requirements of occupations), lack of empirically informed models of key microlevel processes (e.g., skill substitution and human–machine complementarity), and insufficient understanding of how cognitive technologies interact with broader economic dynamics and institutional mechanisms (e.g., urban migration and international trade policy). Overcoming these barriers requires improvements in the longitudinal and spatial resolution of data, as well as refinements to data on workplace skills. These improvements will enable multidisciplinary research to quantitatively monitor and predict the complex evolution of work in tandem with technological progress. Finally, given the fundamental uncertainty in predicting technological change, we recommend developing a decision framework that focuses on resilience to unexpected scenarios in addition to general equilibrium behavior.

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Acknowledgments

This work summarizes insights from the workshop on Innovation, Cities, and the Future of Work, which was funded by NSF Grant 1733545. This work was supported by the Massachusetts Institute of Technology (MIT) and the MIT Initiative on the Digital Economy.

Supporting Information

Appendix (PDF)

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Information & Authors

Information

Published in

The cover image for PNAS Vol.116; No.14
Proceedings of the National Academy of Sciences
Vol. 116 | No. 14
April 2, 2019
PubMed: 30910965

Classifications

Submission history

Published online: March 25, 2019
Published in issue: April 2, 2019

Keywords

  1. automation
  2. employment
  3. economic resilience
  4. future of work

Acknowledgments

This work summarizes insights from the workshop on Innovation, Cities, and the Future of Work, which was funded by NSF Grant 1733545. This work was supported by the Massachusetts Institute of Technology (MIT) and the MIT Initiative on the Digital Economy.

Notes

This article is a PNAS Direct Submission.

Authors

Affiliations

Morgan R. Frank
Media Laboratory, Massachusetts Institute of Technology, Cambridge, MA 02139;
Department of Economics, Massachusetts Institute of Technology, Cambridge, MA 02139;
James E. Bessen
Technology & Policy Research Initiative, School of Law, Boston University, Boston, MA 02215;
Erik Brynjolfsson
Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA 02139;
National Bureau of Economic Research, Cambridge, MA 02138;
Manuel Cebrian
Media Laboratory, Massachusetts Institute of Technology, Cambridge, MA 02139;
David J. Deming
Harvard Kennedy School, Harvard University, Cambridge, MA 02138;
Graduate School of Education, Harvard University, Cambridge, MA 02138;
Maryann Feldman
Department of Public Policy, The University of North Carolina at Chapel Hill, Chapel Hill, NC 27599;
Matthew Groh
Media Laboratory, Massachusetts Institute of Technology, Cambridge, MA 02139;
José Lobo
School of Sustainability, Arizona State University, Tempe, AZ 85287;
Esteban Moro
Media Laboratory, Massachusetts Institute of Technology, Cambridge, MA 02139;
Grupo Interdisciplinar de Sistemas Complejos, Departmento de Matematicas, Escuela Politécnica Superior, Universidad Carlos III de Madrid, 28911 Madrid, Spain;
Dashun Wang
Kellogg School of Management, Northwestern University, Evanston, IL 60208;
Northwestern Institute on Complex Systems, Northwestern University, Evanston, IL 60208;
Kellogg School of Management, Northwestern University, Evanston, IL 60208;
Northwestern Institute on Complex Systems, Northwestern University, Evanston, IL 60208;
Media Laboratory, Massachusetts Institute of Technology, Cambridge, MA 02139;
Institute for Data, Systems, and Society, Massachusetts Institute of Technology, Cambridge, MA 02139;
Center for Humans and Machines, Max Planck Institute for Human Development, 14195 Berlin, Germany

Notes

1
To whom correspondence should be addressed. Email: [email protected].
Author contributions: M.R.F., D.A., J.E.B., E.B., M.C., D.J.D., M.F., M.G., J.L., E.M., D.W., H.Y., and I.R. designed research; M.R.F. performed research; M.R.F. and M.G. analyzed data; and M.R.F., D.A., J.E.B., E.B., M.C., D.J.D., M.F., M.G., J.L., E.M., D.W., H.Y., and I.R. wrote the paper.

Competing Interests

The authors declare no conflict of interest.

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    Toward understanding the impact of artificial intelligence on labor
    Proceedings of the National Academy of Sciences
    • Vol. 116
    • No. 14
    • pp. 6507-7150

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