Welcome to The Nonlinear Library, where we use Text-to-Speech software to convert the best writing from the Rationalist and EA communities into audio. This is: Excessive AI growth-rate yields little socio-economic benefit., published by Cleo Nardo on April 4, 2023 on The AI Alignment Forum.
Basic argument
In short
There exists an adaptive limit representing the rate at which new technology can disseminate from research labs to the economy.
Exceeding this limit yields no socio-economic benefit, in the general case.
Exceeding this limit imposes significant risks and costs.
AI growth-rate currently exceeds the adaptive limit.
Therefore, we should slow rate of AI growth-rate.
Is this argument sound?
(1) There exists an adaptive limit.
There exists an adaptive limit because the economy is a slow-moving complex adaptive system — prices are sticky, employees have contracts, and the NASDAQ closes at 8:00 PM. The economy reaches equilibrium at a timescale of years, not weeks.
Imagine if OpenAI had released ChatGPT-3.5 but hadn't released ChatGPT-4. The release of ChatGPT-3.5 would've had a profound impact on the economy. Here's the standard neo–Keynesian story
Firstly, people start using ChatGPT-3.5 to automate part of their jobs, increasing their productivity. Some employees use ChatGPT-3.5 to complete more tasks within the same working hours, whereas other employees use ChatGPT-3.5 to complete the same tasks within fewer working hours. In both cases, value is created.
Because employees are completing more tasks, the companies start shipping more products and services. Supply goes up, and quality goes up too. So investors and shareholders receive more money. Because employees take more leisure time, their jobs looks more attractive to job-seekers. Hence the supply for labour increases, and the wages decrease, and the demand for such labour, at the new price, increases. Because the labour costs have dropped, competing companies will lower prices to gain more market share. And new industries, which would've been unprofitable in the previous economy, are now profitable and viable. This leads to a real-terms wage increase.
After a few years, the economy reaches (or at least approaches) a new general equilibrium in which...
People have more money to spend.
The products and services are more abundant, cheaper, and of a higher quality.
People have more leisure to enjoy themselves.
This is what we call an "AI Summer Harvest".
Notice that the benefit of ChatGPT-3.5 dissipates slowly throughout the economy. Eventually, the economy approaches a new general equilibrium, but this is a non-instantaneous process.
(2) Exceeding this limit yields no socio-economic benefit.
Our story starts with ChatGPT-3.5 and ends with higher social welfare.
This is a common feature of technological progress — a new general-purpose technology will normally yield these three benefits:
People have more money to spend.
The products and services are more abundant, cheaper, and of a higher quality.
And people have more leisure to enjoy themselves.
This follows from standard neoclassical economics.
However, the neoclassical analysis only applies when the economy is near-equilibrium. When the economy is far-from-equilibrium the neoclassical analysis is agnostic, and we must turn to other macroeconomic methods.
According to mainstream macroeconomic theory, until the sticky prices are adjusted, fired employees are rehired, and investments are reallocated, the economy will not be in a better socio-economic situation.
(e.g. the sticky prices haven't yet been adjusted, fired employees haven't been rehired, investments haven't been reallocated, etc), then the economy will not (in general) be in a better socio-economic situation.
(3) Exceeding this limit imposes significant risks and costs.
This has been covered extensively elsewhere. I'm alluding to
Economic shocks (unemployment, inflation, inequality)
Misinformation, fraud, blackmail, other crimes.
Extinction-level risks.
(4)...