Alex Imas publishes essay on AI labor reallocation
Alex Imas, Director of AGI Economics at Google DeepMind, published an essay analyzing how advanced AI automation alters labor allocation. The essay argues that AI commoditizes routine production tasks and redirects workers toward relational sectors where value stems from human presence, status, and social motives. Supporting evidence includes income-elasticity research showing rising spending on care, connection, and personalized services. Economists and researchers highlighted demand-side mechanisms with parallels to past automation waves in agriculture and manufacturing while noting possible market offsets for relational goods.
I agree with every word here. This is exactly what I meant that relational means the human involvement is key to the value of the output, not just merely involved because there is no substitute.
Reaction to @alexolegimas' excellent essay on AI and the "relational sector": the core idea is that when AI commoditizes more production, human provenance becomes scarcer, and so more valuable. 1/ I think that's right in some domains, but here's a countervailing force.