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Economic Stability

Economic stability during the AI transition captures the balance between AI-driven displacement and society’s capacity to absorb affected workers. The IMF estimates 40% of global jobs are exposed to AI automation, while displacement rates of 2-5% may outpace adaptation capacity of 1-3% annually.

Several factors amplify instability: racing dynamics compress adaptation windows, winner-take-all effects concentrate benefits in few firms and regions, and feedback loops can cascade job losses into demand collapse. However, stabilizing mechanisms exist through labor transition policies, safety nets, and proactive intervention.

MetricScoreNotes
Changeability40Requires coordinated policy across governments and industries
X-risk Impact35Lower direct x-risk contribution; affects transition quality
Trajectory Impact55Substantial influence through institutional path dependence
Uncertainty50Historical precedents exist but AI transition may differ

Risks:

Responses:

Models:

Key Debates:

  • How quickly will AI automate jobs—gradual transition or rapid displacement?
  • Can governments effectively redistribute AI-generated wealth?
  • Will AI create enough new jobs to offset displacement, or is this transition fundamentally different?

Ratings

MetricScoreInterpretation
Changeability40/100Somewhat influenceable
X-risk Impact35/100Meaningful extinction risk
Trajectory Impact55/100Significant effect on long-term welfare
Uncertainty50/100Moderate uncertainty in estimates