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Artificial Intelligence (AI)

The impact of AI on tasks happens through four channels:

The task-based model - Excerpt:

  1. First, there is displacement, when an AI system replaces some of the tasks that were previously performed by humans. An example of this would be the book reviews that were displaced when Amazon adopted its automatic recommender (and laid off its book reviewers, although some have now made it back to the company). This will reduce demand for labor.
  2. Second, there is augmentation when an AI system increases the value of the tasks carried out by humans. An example of this would be Amazon's web development and inventory management tasks: each dollar spent improving its website and stocking many different titles creates a bigger return for the company thanks to its AI recommendation system. This will in general increase the demand for workers whose tasks are augmented.
  3. Third, there is capital deepening. New AI systems are an investment that increases the stock of capital that workers use, making them more productive and increasing demand for labor through the same mechanism as above.
  4. Finally, there is reinstatement, when the AI system creates completely new tasks such as developing machine learning systems or labeling datasets to train those systems. These new tasks will create new jobs and even industries, increasing labor demand.

Here are just a few examples of how AI is already impacting work.

  • Agriculture: predict a crop’s future growth, health, and yields, modeling and prediction, pest detection and crop health monitoring
  • Banking and Insurance: budget analysts, cashiers, tax preparation, data analysis, risk assessment, fraud detection, and algorithmic trading
  • Creative Industries: generate articles, recommend content, generate data-driven reporting, create visual presentations and graphics
  • Customer Service: Chatbots & FAQs - marketing, sales, real estate
  • Education: Instruction & Tutoring
  • Legal and Administrative Professions: contract analysis, and document review
  • Manufacturing: manual and repetitive tasks; assembly line, quality control inspections, and material handling 
  • Medicine: analysis of medical images and administrative tasks , diagnostics, drug discovery
  • Technology and Software Development: web developers
  • Transportation: autonomous vehicles and drones, assembly line co-robots, design

Resulting AI Overview from Google (prompted 11/5/2025)

LLMs can perform tasks like content generation, summarization, code writing, translation, and data analysis. For example, to generate content, a prompt could be "Write a blog post about the benefits of remote work," and an industry affected is media. A workflow for this might involve a human reviewing and editing the AI-generated draft before it is published. 

Task  Example Prompt Industries Affected Example Workflow (AI + Human)
Content Generation "Write a 500-word blog post about the benefits of remote work for employee well-being, including a compelling introduction and a strong conclusion." Media, Marketing, Human Resources, Publishing AI: Generates a draft blog post based on the prompt.
Human: Reviews the draft for tone, accuracy, and originality, then edits and finalizes it for publication.
Summarization "Summarize the following research paper on sustainable agriculture into a one-paragraph executive summary." Academia, Journalism, Finance, Agriculture, Healthcare AI: Creates a concise summary of the provided document.
Human: Verifies the summary's accuracy and completeness, ensuring no critical information is missing before presenting it.
Code Generation "Write a Python function that takes a list of numbers and returns the average, with error handling for empty lists." Software Development, Technology, Finance AI: Writes the function code based on the request.
Human: Tests the function with various inputs, debugs any issues, and integrates it into the larger codebase.
Translation "Translate the following business email from English to Spanish, maintaining a formal tone." International Business, Customer Service, Law, Tourism AI: Translates the email quickly.
Human: Reviews the translation for cultural nuance and professional accuracy, making any necessary adjustments before sending.
Data Analysis "Analyze this customer feedback data and identify the top three most frequently mentioned positive points and negative points." Customer Service, Product Development, Retail, Healthcare AI: Extracts key themes and sentiments from the raw feedback.
Human: Interprets the AI's findings in the broader business context and uses the insights to make strategic decisions.
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