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Pricing Intelligence: Task-Based Learning and Labor Displacement in the AI Economy

Author

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  • Carl-Christian Groh

Abstract

What determines the speed of AI-driven labor displacement? I study this question in a microeconomic model in which users choose between labor and AI to complete tasks. AI models improve through task-specific learning from deployment. Profit-maximizing AI providers optimally price tasks where labor has a strong comparative advantage out of automation to extract more revenue from other tasks, which decelerates aggregate AI adoption by preventing AI learning on the excluded tasks. I characterize when this tension gives rise to an accelerating path of AI adoption or a learning trap. Competi tion can accelerate AI adoption by shifting AI deployment and learning toward tasks where AI has a comparative disadvantage, even though it reduces each provider’s total data access. Asymmetric competition can further accelerate AI adoption by inducing providers to specialize. Importantly, even temporary regulatory interventions such as constraints on providers’ compute capacities can keep AI adoption persistently low.

Suggested Citation

  • Carl-Christian Groh, 2026. "Pricing Intelligence: Task-Based Learning and Labor Displacement in the AI Economy," CRC TR 224 Discussion Paper Series crctr224_2025_797, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2025_797
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp797
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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