Researchers at MIT and elsewhere have “outlined the costs and benefits of artificial intelligence in health care, education and the workforce,” reports Ruth Reader, Daniel Payne, and Carmen Paul for Politico. The researchers say “policymakers should study the real-world implications of the technology and consider using AI to inform policy,” writes Politico.
Prof. Christopher Palmer joins Infotrak host Chris Witting to discuss his recent study that found logistical assistance increases the likelihood that low-income families will move to neighborhoods that offer better economic opportunity. Palmer and colleagues asked “how come more people with vouchers aren’t availing themselves of the opportunity to move to better neighborhoods? That was a prime motivation for our study.”
A new paper by Prof. Daron Acemoglu and Prof. Simon Johnson uses the impact of automation in the textile industry to predict potential similar effects from AI, writes Bloomberg’s Andy Mukherjee. Noting the parallels between the Indian textile industry and disruption currently underway in tech outsourcing, the economists write “the impact of automation on workers today is more complex than an automatic linkage from higher productivity to better wages.”
New York Times columnist Thomas Edsall spotlights recent research by Profs. Daron Acemoglu, David Autor and Simon Johnson, in which they explore whether artificial intelligence could be a beneficial tool for workers. “It is quite possible to leverage generative AI as an informational tool that enables various different types of workers to get better at their jobs and perform more complex tasks,” explains Acemoglu. However, he notes “to turn generative AI pro-worker, we need a major course correction.”
An essay co-authored by Prof. Simon Johnson in Project Syndicate argues that for all the predictions about AI’s effect on the workforce, the most likely outcome is that many people will face pressure to change jobs as the labor market adjusts. Policymakers must focus on human capital, he writes, and “shared prosperity can flow from new technology, but only if its adoption is accompanied by upgraded human skills and more proactive worker redeployment.”
Prof. Daron Acemoglu’s new study projects just mild economic upside in the U.S. stemming from AI advancement, writes Business Insider’s Filip De Mott. According to Acemoglu, AI-led U.S. GDP growth in the next 10 years will rise just 0.93% to 1.16%, due to uncertainty on how much AI can really advance total factor productivity.
Financial Times reporter Robin Wigglesworth spotlights Prof. Daron Acemoglu’s new research that predicts relatively modest productivity growth from AI advances. On generative AI specifically, Acemoglu believes that gains will remain elusive unless industry reorients “in order to focus on reliable information that can increase the marginal productivity of different kinds of workers, rather than prioritizing the development of general human-like conversational tools,” he says.
Writing for the Financial Times, Jon Hilsenrath revisits lessons from the occupational shifts of the early 2000s when probing AI’s potential impact on the workplace. He references Prof. David Autor’s research, calling him “an optimist who sees a future for middle-income workers not in spite of AI, but because of it…creating work and pay gains for large numbers of less-skilled workers who missed out during the past few decades.”
Prof. David Autor is a guest of Meghna Chakrabarti on WBUR’s On Point, discussing his research on the potential impact of AI on the workforce. Autor says “AI is a tool that can enable more people with the right foundational training and judgment to do more valuable work.”
Prof. David Autor speaks with New York Times reporter Jim Tankersley about the economic implications of President Biden’s decision to codify and escalate tariffs on Chinese goods. Autor’s “latest research warns of the economic perils of poorly designed trade policy, but it also explains why presidents might keep pursuing it,” explains Tankersley.
The Hill reporter Tobias Burns spotlights the efforts of a number of MIT researchers to better understand the impact of generative AI on productivity in the workforce. One research study “looked as cases where AI helped improved productivity and worker experience specifically in outsourced settings, such as call centers,” explains Burns. Another research study explored the impact of AI programs, such as ChatGPT, among employees.
“We know the movie and we know how it ends,” said Squawk Box host Andrew Ross Sorkin during an interview with Prof. Eric So, referencing a resurgence of the late 2020 meme stocks craze. “Stock prices move to business fundamentals but they also move to waves of market sentiment which reflect market demand but have little to do with fundamentals,” So comments.
Writing for Project Syndicate, Institute Prof. Daron Acemoglu and Prof. Simon Johnson draw upon the work of economist David Ricardo and his insights on the Industrial Revolution to explore how to respond to the challenge posed by AI to good jobs. “It is still possible to have pro-worker AI, but only if we can change the direction of innovation in the tech industry and introduce new regulations and institutions,” they write.
GiveDirectly, a nonprofit co-founded by MIT and Harvard alumni, works with “economists to identify the most efficient ways to reduce poverty,” reports Katharine Houreld for The Washington Post. “Lump sums are the most efficient way to give cash, according to a study of GiveDirectly programs released in December that compared the impact of three methods,” explains Houreld. “Two years in, recipients of the lump sum have spent more money on health care, and more of their children have scored better on school exams, according to the study by MIT economics professor Abhijit Banerjee and others."
Prof. Jonathan Gruber speaks with Boston Public Radio hosts Jim Braude and Margery Eagan to explain the relationship between inflation and interest rates. “What’s driving the inflation recently is auto insurance prices,” says Gruber. “Why are insurance prices going up? It actually comes back to the Fed. Auto insurers make a profit in two ways. One is by charging you more than they’ll pay out and the other is investing money and getting rates of return on that money.”