The Economics of AI

The course introduces you to cutting-edge research in the economics of AI and the implications for economic growth and labor markets. We start by analyzing the nature of intelligence and information theory. Then we connect our analysis to modeling production and technological change in economics, and how these processes are affected by AI. Next we turn to how technological change drives aggregate economic growth, covering a range of scenarios including a potential growth singularity. We also study the impact of AI-driven technological change on labor markets and workers, evaluating to what extent fears about technological unemployment are well-founded. We continue with an analysis of economic policies to deal with advanced AI. Finally, we evaluate the potential for transformative progress in AI to lead to significant disruptions and study the problem of how humans can control highly intelligent AI algorithms.