Economics of Transformative AI

Revolutionizing economics to harness the full potential of advanced AI. 

AI has the potential to reshape our economy more dramatically and swiftly than any previous innovation in human history. Given the Lab’s resources and unique standing across disciplines, we don’t just see it as a goal, but an obligation, to help economic systems, organizations, laws, and institutions seize this moment of unprecedented change.

Transformative AI will reshape our lives and world, but the direction of that transformation has yet to be determined. The Stanford Digital Economy Lab is privileged to bring years of experience to both an urgent challenge and exciting opportunity.

Enormous investments of money and effort have fed into technological development, but our understanding of AI’s economic implications is lagging behind. We explore how significant advancements, including the potential development of AGI, would impact labor markets, skills, wages, and firm behavior. Director Erik Brynjolfsson and his colleagues are defining fundamental questions that lay the groundwork for a productive research agenda.

From this foundation, we develop the theories, tools, and benchmarks to ensure AI progress translates into measurable gains in innovation, productivity, and well-being.