Shiller agreed that AI offers companies a good excuse to conduct layoffs, or they may genuinely see AI as a good replacement. He said he’d also argue that AI workers have a number of other advantages over human workers. For one, hiring and firing are both full of friction, but “you can scale up an arbitrary number of workers almost instantly with AI. It doesn’t matter if it’s 3 p.m. in the afternoon or midnight. You have an idea, you want someone to respond immediately, you can use it. There’s a lot of reasons why AI workers are actually advantageous over human workers.”
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