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A thought-provoking examination of how AI might either spur or harm human economic progress.

What happens to an economy when machines can think as well as, or even better than, humans? The Economics of Transformative AI tackles this issue, which is one of the most consequential economic questions of our time. This book brings together sixteen research studies from top economists that look closely at how transformative AI reshapes everything from innovation and market structure to employment, inequality, and human purpose. They explore both opportunities, such as personalized algorithmic assistance, accelerated scientific discovery, and new forms of organization, and profound challenges, including potential labor displacement, rising concentration of power, changes in the information ecosystem, and even possible existential risks to humanity.

The studies in this volume develop economic frameworks for understanding the conditions under which AI might enhance or undermine human flourishing. They offer policymakers, researchers, and business leaders the analytical tools needed to prepare for the potential economic transformations ahead.