Policy
Navigating Labor and Growth in the AI Future: A Review and Research Agenda
July 2025
AI's economic impact is both vast and highly uncertain. Current forecasts swing from unprecedented prosperity to severe inequality, but most rely on narrow models that ignore the feedback loops linking technology, policy, and society. In this writeup, we review recent research on automation exposure, firm-level adoption, and accelerating capabilities, and find large knowledge gaps. We propose a more realistic path forward that demands richer modeling, better data, interdisciplinary work, and adaptive governance to channel AI toward broadly shared prosperity.