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This chapter develops the theoretical core of the book by treating artificial intelligence as a production technology rather than merely as a collection of digital products. It explains why the standard language of aggregate production functions is too coarse for understanding AI and why the task-based approach provide...
This chapter examines how artificial intelligence (AI) may affect productivity and long-term economic growth. It begins by clarifying what economists mean by productivity, total factor productivity (TFP), and growth accounting, then explains why AI can raise task-level efficiency without immediately producing a visible...
This chapter examines how artificial intelligence (AI) changes labor markets and the distribution of income. It begins by distinguishing skill-biased, routine-biased, and task-biased technological change, then explains why generative AI requires a further shift in emphasis from occupations to tasks, workflows, and orga...
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