Attention Economy


Wednesday, August 2, 2023

AI and the Job Replacement Debate

AI Study Says Stocks Already Pricing a Job-Replacement Premium
https://www.bloomberg.com/news/articles/2023-08-02/firms-exposed-to-ai-job-streamlining-are-already-beating-the-market-study-says
Related:
Generative AI and Firm Values
https://www.nber.org/papers/w31222
Abstract
What are the effects of recent advances in Generative AI on the value of firms? Our study offers a quantitative answer to this question for U.S. publicly traded companies based on the exposures of their workforce to Generative AI. Our novel firm-level measure of workforce exposure to Generative AI is validated by data from earnings calls, and has intuitive relationships with firm and industry-level characteristics. Using Artificial Minus Human portfolios that are long firms with higher exposures and short firms with lower exposures, we show that higher-exposure firms earned excess returns that are 0.4% higher on a daily basis than returns of firms with lower exposures following the release of ChatGPT. Although this release was generally received by investors as good news for more exposed firms, there is wide variation across and within industries, consistent with the substantive disruptive potential of Generative AI technologies. 

Aided by A.I. Language Models, Google’s Robots Are Getting Smart
https://www.nytimes.com/2023/07/28/technology/google-robots-ai.html
Our sneak peek into Google’s new robotics model, RT-2, which melds artificial intelligence technology with robots.