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Forecasting the Economic Effects of AI

Author

Listed:
  • Ezra Karger
  • Otto Kuusela
  • Jason Abaluck
  • Kevin A. Bryan
  • Basil Halperin
  • Todd R. Jones
  • Connacher Murphy
  • Philip Trammell
  • Matt Reynolds
  • Dan Mayland
  • Ria Viswanathan
  • Ananaya Mittal
  • Rebecca Ceppas de Castro
  • Josh Rosenberg
  • Philip Tetlock

Abstract

We elicit forecasts of how AI will affect the U.S. economy, comparing the beliefs of five groups: academic economists, employees at AI companies, policy researchers focused on AI, highly accurate forecasters, and the general public. The median respondent in each group expects substantial advances in AI capabilities by 2030, small declines in labor force participation consistent with demographic shifts, and an annual GDP growth rate of 2.5%, which exceeds both the typical medium-run (2.0%) and long-run (1.7%) baseline forecasts from government agencies and private-sector forecasters. Conditional on a “rapid” AI progress scenario, in which AI systems surpass human performance on many cognitive and physical tasks, experts forecast substantial, though not historically unprecedented, economic shifts: annualized GDP growth rising to around 4% and the labor force participation rate falling from its current level of 62% to 55% by 2050, with roughly half of that decline—equivalent to around 10 million lost jobs—attributable to AI. A variance decomposition suggests that expert disagreement about these effects is driven primarily by different beliefs about the economic effects of highly capable AI systems rather than by disagreement about the pace of AI progress. These forecasts map onto notably different policy preferences across groups: experts strongly favor targeted measures such as worker retraining, whereas the general public supports both targeted programs and broader interventions, including a job guarantee and universal basic income.

Suggested Citation

  • Ezra Karger & Otto Kuusela & Jason Abaluck & Kevin A. Bryan & Basil Halperin & Todd R. Jones & Connacher Murphy & Philip Trammell & Matt Reynolds & Dan Mayland & Ria Viswanathan & Ananaya Mittal & Reb, 2026. "Forecasting the Economic Effects of AI," NBER Working Papers 35046, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:35046
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    More about this item

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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