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Economic Black Holes and Labor Singularities in the Presence of Self-replicating Artificial Intelligence

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  • YANO Makoto
  • FURUKAWA Yuichi

Abstract

This study is motivated by the widely-held view that self-replicating artificial intelligence may approach "some essential singularity . . . beyond which human affairs, as we know them, could not continue" (von Neumann). It investigates what state this process would lead to in an economy with frictionless markets. We demonstrate that if the production technologies, too, are frictionless, all workers will eventually be pulled into the most labor friendly sector (economic black hole). If, instead, they are subject to a friction created by congestion, it will give rise to, within a finite span of time, a state in which all workers will be unemployed (total job destruction).

Suggested Citation

  • YANO Makoto & FURUKAWA Yuichi, 2020. "Economic Black Holes and Labor Singularities in the Presence of Self-replicating Artificial Intelligence," Discussion papers 20009, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:20009
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    References listed on IDEAS

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    1. Joseph Zeira, 1998. "Workers, Machines, and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1091-1117.
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    3. Boldrin, Michele & Levine, David K., 2002. "Factor Saving Innovation," Journal of Economic Theory, Elsevier, vol. 105(1), pages 18-41, July.
    4. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    5. Masayuki Morikawa, 2017. "Firms' Expectations About The Impact Of Ai And Robotics: Evidence From A Survey," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 1054-1063, April.
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