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The Turing Transformation: Artificial Intelligence, Intelligence Augmentation, and Skill Premiums

Author

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  • Ajay K. Agrawal
  • Joshua S. Gans
  • Avi Goldfarb

Abstract

We ask whether a technical objective of using human performance of tasks as a benchmark for AI performance will result in the negative outcomes highlighted in prior work in terms of jobs and inequality. Instead, we argue that task automation, especially when driven by AI advances, can enhance job prospects and potentially widen the scope for employment of many workers. The neglected mechanism we highlight is the potential for changes in the skill premium where AI automation of tasks exogenously improves the value of the skills of many workers, expands the pool of available workers to perform other tasks, and, in the process, increases labor income and potentially reduces inequality. We label this possibility the “Turing Transformation.” As such, we argue that AI researchers and policymakers should not focus on the technical aspects of AI applications and whether they are directed at automating human-performed tasks or not and, instead, focus on the outcomes of AI research. In so doing, our goal is not to diminish human-centric AI research as a laudable goal. Instead, we want to note that AI research that uses a human-task template with a goal to automate that task can often augment human performance of other tasks and whole jobs. The distributional effects of technology depend more on which workers have tasks that get automated than on the fact of automation per se.

Suggested Citation

  • Ajay K. Agrawal & Joshua S. Gans & Avi Goldfarb, 2023. "The Turing Transformation: Artificial Intelligence, Intelligence Augmentation, and Skill Premiums," NBER Working Papers 31767, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:31767
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    Cited by:

    1. Giuntella, Osea & König, Johannes & Stella, Luca, 2023. "Artificial Intelligence and Workers' Well-Being," IZA Discussion Papers 16485, Institute of Labor Economics (IZA).
    2. Cheng, Can & Luo, Jiayu & Zhu, Chun & Zhang, Shangfeng, 2024. "Artificial intelligence and the skill premium: A numerical analysis of theoretical models," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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