Fig. 4
From: Generative AI may create a socioeconomic tipping point through labour displacement
Simulation results. The left panel shows the impacts of the AI-capital-to-labour ratio and new job creation rate on the consumption index over the period 2023.5 to 2050.5. The pale shading corresponds to increases in the consumption index against the baseline, the lighter red shading indicates smaller percentage reductions against the baseline, and dark red shading to larger percentage reductions. The right panel shows the non-linear change in consumption index between 2023.5 and 2050.5 under a scenario of a moderate rate of AI-capital deepening (K-L ratio increase per annum of 7%) and high rate of jobs growth (a sixfold increase in the baseline new job creation rate per annum) compared to the baseline. The solid line indicates the simulated consumption index over time, darker shading represents 50% uncertainty interval, and lighter shading indicates the 95% uncertainty interval derived from the sensitivity analysis.
