Artificial Intelligence: The Ambiguous Labor Market Impact of Automating Prediction
26 Pages Posted: 16 Mar 2019
Date Written: February 25, 2019
Recent advances in artificial intelligence are primarily driven by machine learning, a prediction technology. Prediction is useful because it is an input into decision-making. In order to appreciate the impact of artificial intelligence on jobs, it is important to understand the relative roles of prediction and decision tasks. We describe and provide examples of how artificial intelligence will affect labor, emphasizing differences between when automating prediction leads to automating decisions versus enhancing decision-making by humans.
Keywords: Artificial Intelligence, Automation, Machine Learning, Biased Technical Change, Prediction
JEL Classification: J20, O33
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