Angus Cameron

In a new working paper, Benjamin Verschuere and Angus Cameron argue that the wide dispersion in economists' forecasts for the impact of artificial intelligence on the economy stems from two gaps. The first is that estimates for growth, jobs, and prices are each built in isolation, with no single framework to reconcile them. The second is that models fixate on AI’s current capabilities, rather than on how fast it spreads and how much of a given job it can eventually reach. The authors build a unified framework that predicts roughly $2 trillion in long-run output gains, the loss of about 20 million American jobs, and falling prices.