The Economics of Intelligence: How and when does AGI lead to economic transformation?
This essay draws on the paper Organizing Intelligence which presents the full economic model and derives the results formally.How do capability improvements transform the economy, and when? In this essay, we define thresholds of economic capabilities, e.g., minimal AGI, as a function of how they transform the economy. We then track how the economy–market structure, employment, and wages–changes during the transition across capability regimes.The last few years have seen exponential growth in the...
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