Overview

The field studies how AI affects which tasks people do, how jobs and labor markets are organized, and how workers’ pay, skills, opportunities, and well-being change. Researchers use task and occupation taxonomies such as O*NET, job postings and workplace data, worker interviews and surveys, economic models, and benchmarks that compare automation with human-AI collaboration. Current evidence points to broad but uneven AI use, with effects depending on occupation, workplace practices, and whether systems assist workers or take over tasks; hiring audits also examine bias and changing evaluation practices. A central tension is that short-term productivity gains may come at the cost of worker expertise, job quality, or future capabilities, while exposure scores and benchmark results alone often cannot show what happens in real workplaces.

Latest papers

95 papers9 papers in the last four weeks, up 13% on the four weeks before. 0.1% of all new papers.

Apr 8, 2026

Healthcare AI for Automation or Allocation? A Transaction Cost Economics Framework

Healthcare productivity is shaped not only by clinical complexity but by the costs of coordinating work under uncertainty. Transaction-cost economics offers a theory of these coordination frictions, yet has rarely been operationalised at task level across health occupations. Using task statements and frequency weights from the O*NET occupational database, we characterised healthcare work at task granularity and coded each unique task using a constrained large language model into one dominant transaction-cost category (information search, decision and bargaining, monitoring and enforcement, or adaptation and coordination) together with an overall transaction-cost intensity score. Aggregating to the occupation level, clinician roles exhibited substantially higher transaction-cost intensity than non-clinician roles, driven primarily by greater burdens of information search and decision-related coordination, while dispersion of transaction costs within occupations did not differ. These findings demonstrate systematic heterogeneity in the nature of coordination work across healthcare roles and suggest that the opportunities for digital and AI interventions are unevenly distributed, shaped less by technical task complexity than by underlying coordination structure.
Apr 8, 2026

The AI Skills Shift: Mapping Skill Obsolescence, Emergence, and Transition Pathways in the LLM Era

As Large Language Models reshape the global labor market, policymakers and workers need empirical data on which occupational skills may be most susceptible to automation. We present the Skill Automation Feasibility Index (SAFI), benchmarking four frontier LLMs -- LLaMA 3.3 70B, Mistral Large, Qwen 2.5 72B, and Gemini 2.5 Flash -- across 263 text-based tasks spanning all 35 skills in the U.S. Department of Labor's O*NET taxonomy (1,052 total model calls, 0% failure rate). Cross-referencing with real-world AI adoption data from the Anthropic Economic Index (756 occupations, 17,998 tasks), we propose an AI Impact Matrix -- an interpretive framework that positions skills along four quadrants: High Displacement Risk, Upskilling Required, AI-Augmented, and Lower Displacement Risk. Key findings: (1) Mathematics (SAFI: 73.2) and Programming (71.8) receive the highest automation feasibility scores; Active Listening (42.2) and Reading Comprehension (45.5) receive the lowest; (2) a "capability-demand inversion" where skills most demanded in AI-exposed jobs are those LLMs perform least well at in our benchmark; (3) 78.7% of observed AI interactions are augmentation, not automation; (4) all four models converge to similar skill profiles (3.6-point spread), suggesting that text-based automation feasibility may be more skill-dependent than model-dependent. SAFI measures LLM performance on text-based representations of skills, not full occupational execution. All data, code, and model responses are open-sourced.
Apr 7, 2026

Generative-AI and the transformation of workforce. A job postings-driven analysis

This paper investigates how generative-artificial intelligence AI is reshaping job requirements, skill compositions and sectoral dynamics across global labor markets. It examines the evolving frequency and framing of AI-related competencies in job postings, exploring whether generative-AI functions primarily as an augmentative or substitutive force in the workplace. A large-scale, multi-source corpus of over 150,000 English-language job postings 2018-2025 is compiled from twelve open-access datasets and one public API. The analytical framework integrates lexical skill extraction, semantic framing, topic modeling, BERTopic, LDA, KMeans, and time-series forecasting ARIMA. Skill mentions are categorized into five dimensions: AI_Data, Routine, Soft_Meta, Domain_Specific and Leadership, while cross sectoral analyses and correlation matrices quantify interdependencies between competencies. Sentence-transformer embeddings and cosine similarity are used to compute a Framing Index, distinguishing augmentation- versus automation-oriented discourse. Investigating job postings, our research contributes a replicable, data driven methodology for mapping the diffusion of AI related skills across industries and time. Results reveal a sharp post-2021 increase in AI-related skill mentions: prompt engineering, fine-tuning and model validation, accompanied by a decline in routine tasks: data entry and manual coding. Forecasts suggest sustained growth in AI_Data and Soft_Meta skills through 2025, signaling a structural convergence toward hybrid human-AI expertise as a new foundation of employability.
Apr 7, 2026

FrontierFinance: A Long-Horizon Computer-Use Benchmark of Real-World Financial Tasks

As concerns surrounding AI-driven labor displacement intensify in knowledge-intensive sectors, existing benchmarks fail to measure performance on tasks that define practical professional expertise. Finance, in particular, has been identified as a domain with high AI exposure risk, yet lacks robust benchmarks to track real-world developments. This gap is compounded by the absence of clear accountability mechanisms in current Large Language Model (LLM) deployments. To address this, we introduce FrontierFinance, a long-horizon benchmark of 25 complex financial modeling tasks across five core finance models, requiring an average of over 18 hours of skilled human labor per task to complete. Developed with financial professionals, the benchmark reflects industry-standard financial modeling workflows and is paired with detailed rubrics for structured evaluation. We engage human experts to define the tasks, create rubrics, grade LLMs, and perform the tasks themselves as human baselines. We demonstrate that our human experts both receive higher scores on average, and are more likely to provide client-ready outputs than current state-of-the-art systems.
Apr 6, 2026

Quantifying how AI Panels improve precision

AI in applications like screening job applicants had become widespread, and may contribute to unemployment especially among the young. Biases in the AIs may become baked into the job selection process, but even in their absence, reliance on a single AI is problematic. In this paper we derive a simple formula to estimate, or at least place an upper bound on, the precision of such approaches for data resembling realistic CVs: P(q)≈ρnb+q(1−ρ)1+(nb−1)ρP(q) \approx \frac{ρn^b + q(1-ρ)}{1 + (n^b - 1)ρ} where b≈q∗+0.8(1−ρ)b \approx q^* + 0.8 (1 - ρ) and q∗q^* is qq clipped to [0.07,0.22][0.07, 0.22] where P(q)P(q) is the precision of the top qq quantile selected by a panel of nn AIs and ρρ is their average pairwise correlation. This equation provides a basis for considering how many AIs should be used in a Panel, depending on the importance of the decision. A quantitative discussion of the merits of using a diverse panel of AIs to support decision-making in such areas will move away from dangerous reliance on single AI systems and encourage a balanced assessment of the extent to which diversity needs to be built into the AI parts of the socioeconomic systems that are so important for our future.
Apr 3, 2026

The Augmentation Trap: AI Productivity and the Cost of Cognitive Offloading

Experimental evidence suggests that AI tools raise worker productivity, but also that sustained offloading can erode expertise. This creates a tradeoff when expertise is a complement to AI. To explore the consequences of this tradeoff, we develop a dynamic model in which a decision-maker chooses the intensity of practice-displacing AI offloading for a worker over time, trading immediate productivity against the erosion of worker skill. We decompose the tool's productivity effect into two components, one independent of worker expertise and one that scales with it. The model produces three main results. First, a decision-maker who fully anticipates skill erosion still rationally adopts AI when front-loaded gains outweigh long-run skill costs, lowering long-run productivity. The decomposition sorts deployments into five regions by their long-run effect, separating beneficial from harmful adoption. Second, the tradeoff introduces the potential for misaligned incentives to harm workers. When managers are short-termist or worker skill has external value, AI use can leave the worker worse off than with no AI, the outcome we call the augmentation trap. Third, when AI substitutes strongly enough for expertise, offloading can generate permanent divergence, with high-skill workers realizing their potential and low-skill workers deskilling. Small differences in managerial incentives can determine which path a worker takes.
Apr 2, 2026

Measuring What Cannot Be Surveyed: LLMs as Instruments for Latent Cognitive Variables in Labor Economics

This paper establishes the theoretical and practical foundations for using Large Language Models (LLMs) as measurement instruments for latent economic variables -- specifically variables that describe the cognitive content of occupational tasks at a level of granularity not achievable with existing survey instruments. I formalize four conditions under which LLM-generated scores constitute valid instruments: semantic exogeneity, construct relevance, monotonicity, and model invariance. I then apply this framework to the Augmented Human Capital Index (AHC_o), constructed from 18,796 O*NET task statements scored by Claude Haiku 4.5, and validated against six existing AI exposure indices. The index shows strong convergent validity (r = 0.85 with Eloundou GPT-gamma, r = 0.79 with Felten AIOE) and discriminant validity. Principal component analysis confirms that AI-related occupational measures span two distinct dimensions -- augmentation and substitution. Inter-rater reliability across two LLM models (n = 3,666 paired scores) yields Pearson r = 0.76 and Krippendorff's alpha = 0.71. Prompt sensitivity analysis across four alternative framings shows that task-level rankings are robust. Obviously Related Instrumental Variables (ORIV) estimation recovers coefficients 25% larger than OLS, consistent with classical measurement error attenuation. The methodology generalizes beyond labor economics to any domain where semantic content must be quantified at scale.
Apr 1, 2026

From Automation to Augmentation: A Framework for Designing Human-Centric Work Environments in Society 5.0

Society 5.0 and Industry 5.0 call for human-centric technology integration, yet the concept lacks an operational definition that can be measured, optimized, or evaluated at the firm level. This paper addresses three gaps. First, existing models of human-AI complementarity treat the augmentation function phi(D) as exogenous -- dependent only on the stock of AI deployed -- ignoring that two firms with identical technology investments achieve radically different augmentation outcomes depending on how the workplace is organized around the human-AI interaction. Second, no multi-dimensional instrument exists linking workplace design choices to augmentation productivity. Third, the Society 5.0 literature proposes human-centricity as a normative aspiration but provides no formal criterion for when it is economically optimal. We make four contributions. (1) We endogenize the augmentation function as phi(D, W), where W is a five-dimensional workplace design vector -- AI interface design, decision authority allocation, task orchestration, learning loop architecture, and psychosocial work environment -- and prove that human-centric design is profit-maximizing when the workforce's augmentable cognitive capital exceeds a critical threshold. (2) We conduct a PRISMA-guided systematic review of 120 papers (screened from 6,096 records) to map the evidence base for each dimension. (3) We provide secondary empirical evidence from Colombia's EDIT manufacturing survey (N=6,799 firms) showing that management practice quality amplifies the return to technology investment (interaction coefficient 0.304, p<0.01). (4) We propose the Workplace Augmentation Design Index (WADI), a 36-item theory-grounded instrument for diagnosing human-centricity at the firm level. Decision authority allocation emerges as the binding constraint for Society 5.0 transitions, and task orchestration as the most under-researched dimension
Apr 1, 2026

Crashing Waves vs. Rising Tides: Findings on AI Automation from Thousands of Worker Evaluations of Labor Market Tasks

We characterize AI automation as a continuum between crashing waves, in which capabilities jump abruptly across narrow task sets, and rising tides, in which capabilities improve continuously and broadly. Using evidence from more than 6,000 text-based, LLM-addressable tasks derived from the U.S. Department of Labor's O*NET taxonomy and over 60,000 evaluations by experienced workers, we find little evidence of crashing waves (contrary to existing views). Instead, rising tides are the primary form of AI progress. AI performance is high and improving rapidly across many tasks. In 2024-Q2, models completed text-based tasks that take humans about 1.5 hours to complete with roughly 60% success, rising above 70% by 2025-Q3. If recent trends in AI capability growth persist, frontier LLMs will be able to complete most text-based tasks at minimally sufficient quality with 88%-97% success by 2030.
Apr 1, 2026

Not My Truce: Personality Differences in AI-Mediated Workplace Negotiation

AI-driven conversational coaching is increasingly used to support workplace negotiation, yet prior work assumes uniform effectiveness across users. We challenge this assumption by examining how individual differences, particularly personality traits, moderate coaching outcomes. We conducted a between-subjects experiment (N=267) comparing theory-driven AI (Trucey), general-purpose AI (Control-AI), and a traditional negotiation handbook (Control-NoAI). Participants were clustered into three profiles -- resilient, overcontrolled, and undercontrolled -- based on the Big-Five personality traits and ARC typology. Resilient workers achieved broad psychological gains primarily from the handbook, overcontrolled workers showed outcome-specific improvements with theory-driven AI, and undercontrolled workers exhibited minimal effects despite engaging with the frameworks. These patterns suggest personality as a predictor of readiness beyond stage-based tailoring: vulnerable users benefit from targeted rather than comprehensive interventions. The study advances understanding of personality-determined intervention prerequisites and highlights design implications for adaptive AI coaching systems that align support intensity with individual readiness, rather than assuming universal effectiveness.
Mar 31, 2026

Agentic AI and Occupational Displacement: A Multi-Regional Task Exposure Analysis of Emerging Labor Market Disruption

This paper extends the Acemoglu-Restrepo task exposure framework to address the labor market effects of agentic artificial intelligence systems: autonomous AI agents capable of completing entire occupational workflows rather than discrete tasks. Unlike prior automation technologies that substitute for individual subtasks, agentic AI systems execute end-to-end workflows involving multi-step reasoning, tool invocation, and autonomous decision-making, substantially expanding occupational displacement risk beyond what existing task-level analyses capture. We introduce the Agentic Task Exposure (ATE) score, a composite measure computed algorithmically from O*NET task data using calibrated adoption parameters--not a regression estimate--incorporating AI capability scores, workflow coverage factors, and logistic adoption velocity. Applying the ATE framework across five major US technology regions (Seattle-Tacoma, San Francisco Bay Area, Austin, New York, and Boston) over a 2025-2030 horizon, we find that 93.2% of the 236 analyzed occupations across six information-intensive SOC groups (financial, legal, healthcare, healthcare support, sales, and administrative/clerical) cross the moderate-risk threshold (ATE >= 0.35) in Tier 1 regions by 2030, with credit analysts, judges, and sustainability specialists reaching ATE scores of 0.43-0.47. We simultaneously identify seventeen emerging occupational categories benefiting from reinstatement effects, concentrated in human-AI collaboration, AI governance, and domain-specific AI operations roles. Our findings carry implications for workforce transition policy, regional economic planning, and the temporal dynamics of labor market adjustment
Mar 31, 2026

Beyond Symbolic Control: Societal Consequences of AI-Driven Workforce Displacement and the Imperative for Genuine Human Oversight Architectures

The accelerating displacement of human labor by artificial intelligence (AI) and robotic systems represents a structural transformation whose societal consequences extend far beyond conventional labor market analysis. This paper presents a systematic multi-domain examination of the likely effects on economic structure, psychological well-being, political stability, education, healthcare, and geopolitical order. We identify a critical and underexamined dimension of this transition: the governance gap between nominal human oversight of AI systems -- where humans occupy positions of formal authority over AI decisions -- and genuine human oversight, where those humans possess the cognitive access, technical capability, and institutional authority to meaningfully understand, evaluate, and override AI outputs. We argue that this distinction, largely absent from current governance frameworks including the EU AI Act and NIST AI Risk Management Framework 1.0, represents the primary architectural failure mode in deployed AI governance. The societal consequences of labor displacement intensify this problem by concentrating consequential AI decision-making among an increasingly narrow class of technical and capital actors. We propose five architectural requirements for genuine human oversight systems and characterize the governance window -- estimated at 10-15 years -- before current deployment trajectories risk path-dependent social, economic, and institutional lock-in.
Mar 31, 2026

Economics of Human and AI Collaboration: When is Partial Automation More Attractive than Full Automation?

This paper develops a unified framework for evaluating the optimal degree of task automation. Moving beyond binary automate-or-not assessments, we model automation intensity as a continuous choice in which firms minimize costs by selecting an AI accuracy level, from no automation through partial human-AI collaboration to full automation. On the supply side, we estimate an AI production function via scaling-law experiments linking performance to data, compute, and model size. Because AI systems exhibit predictable but diminishing returns to these inputs, the cost of higher accuracy is convex: good performance may be inexpensive, but near-perfect accuracy is disproportionately costly. Full automation is therefore often not cost-minimizing; partial automation, where firms retain human workers for residual tasks, frequently emerges as the equilibrium. On the demand side, we introduce an entropy-based measure of task complexity that maps model accuracy into a labor substitution ratio, quantifying human labor displacement at each accuracy level. We calibrate the framework with O*NET task data, a survey of 3,778 domain experts, and GPT-4o-derived task decompositions, implementing it in computer vision. Task complexity shapes substitution: low-complexity tasks see high substitution, while high-complexity tasks favor limited partial automation. Scale of deployment is a key determinant: AI-as-a-Service and AI agents spread fixed costs across users, sharply expanding economically viable tasks. At the firm level, cost-effective automation captures approximately 11% of computer-vision-exposed labor compensation; under economy-wide deployment, this share rises sharply. Since other AI systems exhibit similar scaling-law economics, our mechanisms extend beyond computer vision, reinforcing that partial automation is often the economically rational long-run outcome, not merely a transitional phase.
Mar 28, 2026

The Novelty Bottleneck: A Framework for Understanding Human Effort Scaling in AI-Assisted Work

We propose a stylized model of human-AI collaboration that isolates a mechanism we call the novelty bottleneck: the fraction of a task requiring human judgment creates an irreducible serial component analogous to Amdahl's Law in parallel computing. The model assumes that tasks decompose into atomic decisions, a fraction νν of which are "novel" (not covered by the agent's prior), and that specification, verification, and error correction each scale with task size. From these assumptions, we derive several non-obvious consequences: (1) there is no smooth sublinear regime for human effort it transitions sharply from O(E)O(E) to O(1)O(1) with no intermediate scaling class; (2) better agents improve the coefficient on human effort but not the exponent; (3) for organizations of n humans with AI agents, optimal team size decreases with agent capability; (4) wall-clock time achieves O(E)O(\sqrt{E}) through team parallelism but total human effort remains O(E)O(E); and (5) the resulting AI safety profile is asymmetric -- AI is bottlenecked on frontier research but unbottlenecked on exploiting existing knowledge. We show these predictions are consistent with empirical observations from AI coding benchmarks, scientific productivity data, and practitioner reports. Our contribution is not a proof that human effort must scale linearly, but a framework that identifies the novelty fraction as the key parameter governing AI-assisted productivity, and derives consequences that clarify -- rather than refute -- prevalent narratives about intelligence explosions and the "country of geniuses in a data center."
Mar 27, 2026

"Oops! ChatGPT is Temporarily Unavailable!": A Diary Study on Knowledge Workers' Experiences of LLM Withdrawal

LLMs have become deeply embedded in knowledge work, raising concerns about growing dependency and the potential undermining of human skills. To investigate the pervasiveness of LLMs in work practices, we conducted a four-day diary study with frequent LLM users (N=10), observing how knowledge workers responded to a temporary withdrawal of LLMs. Our findings show how LLM withdrawal disrupted participants' workflows by identifying gaps in task execution, how self-directed work led participants to reclaim professional values, and how everyday practices revealed the extent to which LLM use had become inescapably normative. Conceptualizing LLMs as infrastructural to contemporary knowledge work, this research contributes empirical insights into the often invisible role of LLMs and proposes value-driven appropriation as an approach to supporting professional values in the current LLM-pervasive work environment.
Mar 21, 2026

Where can AI be used? Insights from a deep ontology of work activities

Artificial intelligence (AI) is poised to profoundly reshape how work is executed and organized, but we do not yet have deep frameworks for understanding where AI can be used. Here we provide a comprehensive ontology of work activities that can help systematically analyze and predict uses of AI. To do this, we disaggregate and then substantially reorganize the approximately 20K activities in the US Department of Labor's widely used O*NET occupational database. Next, we use this framework to classify descriptions of 13,275 AI software applications and a worldwide tally of 20.8 million robotic systems. Finally, we use the data about both these kinds of AI to generate graphical displays of how the estimated units and market values of all worldwide AI systems used today are distributed across the work activities that these systems help perform. We find a highly uneven distribution of AI market value across activities, with the top 1.6% of activities accounting for over 60% of AI market value. Most of the market value is used in information-based activities (72%), especially creating information (36%), and only 12% is used in physical activities. Interactive activities include both information-based and physical activities and account for 48% of AI market value, much of which (26%) involves transferring information. These results can be viewed as rough predictions of the AI applicability for all the different work activities down to very low levels of detail. Thus, we believe this systematic framework can help predict at a detailed level where today's AI systems can and cannot be used and how future AI capabilities may change this.
Mar 20, 2026

AI in Work-Based Learning: Understanding the Purposes and Effects of Intelligent Tools Among Student Interns

This study examined how student interns in Philippine higher education use intelligent tools during their OJT. Data were collected from 384 respondents using a structured questionnaire that asked about AI tool usage, task-specific applications, and perceptions of confidence, ethics, and support. Analysis of task-based usage identified four main purposes: productivity and report writing, communication and content drafting, technical assistance and code support, and independent task completion. ChatGPT was the most commonly used AI tool, followed by Quillbot, Canva AI, and Grammarly. Students reported moderate confidence in using AI and applied these tools selectively and ethically during OJT tasks. This indicate that AI tools assist student interns in various OJT activities related to work-readiness. The study suggests that higher education programs include AI literacy and onboarding. Clear policies and fair access to AI tools are important to support responsible use and prepare students for future careers.
Mar 17, 2026

WorkRB: A Community-Driven Evaluation Framework for AI in the Work Domain

Today's evolving labor markets rely increasingly on recommender systems for hiring, talent management, and workforce analytics, with natural language processing (NLP) capabilities at the core. Yet, research in this area remains highly fragmented. Studies employ divergent ontologies (ESCO, O*NET, national taxonomies), heterogeneous task formulations, and diverse model families, making cross-study comparison and reproducibility exceedingly difficult. General-purpose benchmarks lack coverage of work-specific tasks, and the inherent sensitivity of employment data further limits open evaluation. We present WorkRB (Work Research Benchmark), the first open-source, community-driven benchmark tailored to work-domain AI. WorkRB organizes 13 diverse tasks from 7 task groups as unified recommendation and NLP tasks, including job/skill recommendation, candidate recommendation, similar item recommendation, and skill extraction and normalization. WorkRB enables both monolingual and cross-lingual evaluation settings through dynamic loading of multilingual ontologies. Developed within a multi-stakeholder ecosystem of academia, industry, and public institutions, WorkRB has a modular design for seamless contributions and enables integration of proprietary tasks without disclosing sensitive data. WorkRB is available under the Apache 2.0 license at https://github.com/techwolf-ai/WorkRB.
Mar 16, 2026

NLP Occupational Emergence Analysis: How Occupations Form and Evolve in Real Time -- A Zero-Assumption Method Demonstrated on AI in the US Technology Workforce, 2022-2026

Occupations form and evolve faster than classification systems can track. We propose that a genuine occupation is a self-reinforcing structure (a bipartite co-attractor) in which a shared professional vocabulary makes practitioners cohesive as a group, and the cohesive group sustains the vocabulary. This co-attractor concept enables a zero-assumption method for detecting occupational emergence from resume data, requiring no predefined taxonomy or job titles: we test vocabulary cohesion and population cohesion independently, with ablation to test whether the vocabulary is the mechanism binding the population. Applied to 8.2 million US resumes (2022-2026), the method correctly identifies established occupations and reveals a striking asymmetry for AI: a cohesive professional vocabulary formed rapidly in early 2024, but the practitioner population never cohered. The pre-existing AI community dissolved as the tools went mainstream, and the new vocabulary was absorbed into existing careers rather than binding a new occupation. AI appears to be a diffusing technology, not an emerging occupation. We discuss whether introducing an "AI Engineer" occupational category could catalyze population cohesion around the already-formed vocabulary, completing the co-attractor.
Mar 12, 2026

Gender Bias in Generative AI-assisted Recruitment Processes

In recent years, generative artificial intelligence (GenAI) systems have assumed increasingly crucial roles in selection processes, personnel recruitment and analysis of candidates' profiles. However, the employment of large language models (LLMs) risks reproducing, and in some cases amplifying, gender stereotypes and bias already present in the labour market. The objective of this paper is to evaluate and measure this phenomenon, analysing how a state-of-the-art generative model (GPT-5) suggests occupations based on gender and work experience background, focusing on under-35-year-old Italian graduates. The model has been prompted to suggest jobs to 24 simulated candidate profiles, which are balanced in terms of gender, age, experience and professional field. Although no significant differences emerged in job titles and industry, gendered linguistic patterns emerged in the adjectives attributed to female and male candidates, indicating a tendency of the model to associate women with emotional and empathetic traits, while men with strategic and analytical ones. The research raises an ethical question regarding the use of these models in sensitive processes, highlighting the need for transparency and fairness in future digital labour markets.
Mar 10, 2026

Abundant Intelligence and Deficient Demand: A Macro-Financial Stress Test of Rapid AI Adoption

We formalize a macro-financial stress test for rapid AI adoption. Rather than a productivity bust or existential risk, we identify a distribution-and-contract mismatch: AI-generated abundance coexists with demand deficiency because economic institutions are anchored to human cognitive scarcity. Three mechanisms formalize this channel. First, a displacement spiral with competing reinstatement effects: each firm's rational decision to substitute AI for labor reduces aggregate labor income, which reduces aggregate demand, accelerating further AI adoption. We derive conditions on the AI capability growth rate, diffusion speed, and reinstatement rate under which the net feedback is self-limiting versus explosive. Second, Ghost GDP: when AI-generated output substitutes for labor-generated output, monetary velocity declines monotonically in the labor share absent compensating transfers, creating a wedge between measured output and consumption-relevant income. Third, intermediation collapse: AI agents that reduce information frictions compress intermediary margins toward pure logistics costs, triggering repricing across SaaS, payments, consulting, insurance, and financial advisory. Because top-quintile earners drive 47--65% of U.S.\ consumption and face the highest AI exposure, the transmission into private credit ($2.5 trillion globally) and mortgage markets ($13 trillion) is disproportionate. We derive eleven testable predictions with explicit falsification conditions. Calibrated simulations disciplined by FRED time series and BLS occupation-level data quantify conditions under which stable adjustment transitions to explosive crisis.
Mar 8, 2026

"Better Ask for Forgiveness than Permission": Practices and Policies of AI Disclosure in Freelance Work

The growing use of AI applications among freelance workers is reshaping trust and relationships with clients. This paper investigates how both workers and clients perceive AI use and disclosure in the freelance economy through a three-stage study: interviews with workers and two survey studies with workers and clients. Findings first reveal a key expectation gap around disclosure: Workers often adopt passive disclosure practices, revealing AI use only when asked, as they assume clients can already detect it. Clients, however, are far less confident in recognizing AI-assisted work and prefer proactive disclosure. A second finding highlights the role of unclear or absent client AI policies, which leave workers consistently misinterpreting clients' expectations for AI use and disclosure. Together, these gaps point to the need for clearer guidelines and practices for AI disclosure. Insights extend beyond freelancing, offering implications for trust, accountability, and policy design in other AI-mediated work domains.
Mar 5, 2026

VietJobs: A Vietnamese Job Advertisement Dataset

VietJobs is the first large-scale, publicly available corpus of Vietnamese job advertisements, comprising 48,092 postings and over 15 million words collected from all 34 provinces and municipalities across Vietnam. The dataset provides extensive linguistic and structured information, including job titles, categories, salaries, skills, and employment conditions, covering 16 occupational domains and multiple employment types (full-time, part-time, and internship). Designed to support research in natural language processing and labour market analytics, VietJobs captures substantial linguistic, regional, and socio-economic diversity. We benchmark several generative large language models (LLMs) on two core tasks: job category classification and salary estimation. Instruction-tuned models such as Qwen2.5-7B-Instruct and Llama-SEA-LION-v3-8B-IT demonstrate notable gains under few-shot and fine-tuned settings, while highlighting challenges in multilingual and Vietnamese-specific modelling for structured labour market prediction. VietJobs establishes a new benchmark for Vietnamese NLP and offers a valuable foundation for future research on recruitment language, socio-economic representation, and AI-driven labour market analysis. All code and resources are available at: https://github.com/VinNLP/VietJobs.
Mar 5, 2026

When AI Levels the Playing Field: Skill Homogenization, Asset Concentration, and Two Regimes of Inequality

Generative AI compresses within-task skill differences while shifting economic value toward concentrated complementary assets, creating an apparent paradox: the technology that equalizes individual performance may widen aggregate inequality. We formalize this tension in a task-based model with endogenous education, employer screening, and heterogeneous firms. The model yields two regimes whose boundary depends on AI's technology structure (proprietary vs. commodity) and labor market institutions (rent-sharing elasticity, asset concentration). A scenario analysis via Method of Simulated Moments, matching six empirical targets, disciplines the model's quantitative magnitudes; a sensitivity decomposition reveals that the five non-ΔΔGini moments identify mechanism rates but not the aggregate sign, which at the calibrated parameters is pinned by m6m_6 and ξξ, while AI's technology structure (η1η_1 vs. η0η_0) independently crosses the boundary. The contribution is the mechanism -- not a verdict on the sign. Occupation-level regressions using BLS OEWS data (2019--2023) illustrate why such data cannot test the model's task-level predictions. The predictions are testable with within-occupation, within-task panel data that do not yet exist at scale.
Mar 4, 2026

How Professional Visual Artists are Negotiating Generative AI in the Workplace

Generative AI has been heavily critiqued by artists in both popular media and HCI scholarship. However, more work is needed to understand the impacts of generative AI on professional artists' workplaces and careers. In this paper, we conduct a survey of 378 verified professional visual artists about how generative AI has impacted their careers and workplaces. We find (1) most visual artists are strongly opposed to using generative AI (text or visual) and negotiate their inclusion in the workplace through a variety of refusal strategies (2) there exist a range of factors in artists environments shaping their use of generative AI, including pressure from clients, bosses, and peers and (3) visual artists report overwhelmingly negative impacts of generative AI on their workplaces, leading to added stress and reduced job opportunities. In light of these findings, we encourage HCI researchers to contend more deeply with artists' desires not to use generative AI in the workplace.
Mar 4, 2026

Mathematicians in the age of AI

Recent developments show that AI can prove research-level theorems in mathematics, both formally and informally. This essay urges mathematicians to stay up-to-date with the technology, to consider the ways it will disrupt mathematical practice, and to respond appropriately to the challenges and opportunities we now face.
Mar 3, 2026

Delegation and Verification Under AI

As AI systems enter institutional workflows, workers must decide whether to delegate task execution to AI and how much effort to invest in verifying AI outputs, while institutions evaluate workers using outcome-based standards that may misalign with workers' private costs. We model delegation and verification as the solution to a rational worker's optimization problem, and define worker quality by evaluating an institution-centered utility (distinct from the worker's objective) at the resulting optimal action. We formally characterize optimal worker workflows and show that AI induces phase transitions, where arbitrarily small differences in verification ability lead to sharply different behaviors. As a result, AI can amplify workers with strong verification reliability while degrading institutional worker quality for others who rationally over-delegate and reduce oversight, even when baseline task success improves and no behavioral biases are present. These results identify a structural mechanism by which AI reshapes institutional worker quality and amplifies quality disparities between workers with different verification reliability.
Mar 2, 2026

Beyond the Resumé: A Rubric-Aware Automatic Interview System for Information Elicitation

Effective hiring is integral to the success of an organisation, but it is very challenging to find the most suitable candidates because expert evaluation (e.g.\ interviews conducted by a technical manager) are expensive to deploy at scale. Therefore, automated resume scoring and other applicant-screening methods are increasingly used to coarsely filter candidates, making decisions on limited information. We propose that large language models (LLMs) can play the role of subject matter experts to cost-effectively elicit information from each candidate that is nuanced and role-specific, thereby improving the quality of early-stage hiring decisions. We present a system that leverages an LLM interviewer to update belief over an applicant's rubric-oriented latent traits in a calibrated way. We evaluate our system on simulated interviews and show that belief converges towards the simulated applicants' artificially-constructed latent ability levels. We release code, a modest dataset of public-domain/anonymised resumes, belief calibration tests, and simulated interviews, at https://github.com/mbzuai-nlp/beyond-the-resume. Our demo is available at https://btr.hstu.net.
Mar 1, 2026

How Well Does Agent Development Reflect Real-World Work?

AI agents are increasingly developed and evaluated on benchmarks relevant to human work, yet it remains unclear how representative these benchmarking efforts are of the labor market as a whole. In this work, we systematically study the relationship between agent development efforts and the distribution of real-world human work by mapping benchmark instances to work domains and skills. We first analyze 43 benchmarks and 72,342 tasks, measuring their alignment with human employment and capital allocation across all 1,016 real-world occupations in the U.S. labor market. We reveal substantial mismatches between agent development that tends to be programming-centric, and the categories in which human labor and economic value are concentrated. Within work areas that agents currently target, we further characterize current agent utility by measuring their autonomy levels, providing practical guidance for agent interaction strategies across work scenarios. Building on these findings, we propose three measurable principles for designing benchmarks that better capture socially important and technically challenging forms of work: coverage, realism, and granular evaluation.
Feb 24, 2026

The Headless Firm: How AI Reshapes Enterprise Boundaries

The boundary of the firm is determined by coordination cost. We argue that agentic AI induces a structural change in how coordination costs scale: in prior modular systems, integration cost grew with interaction topology (O(n^2) in the number of components); in protocol-mediated agentic systems, integration cost collapses to O(n) while verification scales with task throughput rather than interaction count. This shift selects for a specific organizational equilibrium -- the Headless Firm -- structured as an hourglass: a personalized generative interface at the top, a standardized protocol waist in the middle, and a competitive market of micro-specialized execution agents at the bottom. We formalize this claim as a coordination cost model with two falsifiable empirical predictions: (1) the marginal cost of adding an execution provider should be approximately constant in a mature hourglass ecosystem; (2) the ratio of total coordination cost to task throughput should remain stable as ecosystem size grows. We derive conditions for hourglass stability versus re-centralization and analyze implications for firm size distributions, labor markets, and software economics. The analysis predicts a domain-conditional Great Unbundling: in high knowledge-velocity domains, firm size distributions shift mass from large integrated incumbents toward micro-specialized agents and thin protocol orchestrators.