AI and Our Economic Future

Charles I. Jones

Journal of Economic Perspectives, 2026, vol. 40, issue 3, 3-22

Abstract: Artificial intelligence (AI) will likely be the most transformative technology of the modern era. What if machines—AI for cognitive tasks and AI plus advanced robots for physical tasks—can perform every task a human can? This essay makes three main points. First, even though US growth rates have been stable at roughly 2 percent per year for 150 years, it is distinctly possible that automating intelligence leads economic growth rates to accelerate. Second, this acceleration is likely to be slowed by the presence of "weak links." While we each have access to 100 million times more transistors on our desktop computer than people in the 1970s, we are not 100 million times more productive. Computers can invert matrices at lightning speed, but we humans must still decide what matrix to invert, what hypothesis to test, and so on. Accelerating economic growth requires the vast majority of the weak links to be automated away, which delays the large gains. Finally, even though weak links slow the benefits, they may actually speed up the risks. When a chain is only as strong as its weakest link, damaging one link in the chain can be very costly. A powerful AI that is superhuman at software engineering could be misused by a bad actor to do substantial harm by hacking the financial system or a virology lab.

JEL-codes: C45 D63 D81 E23 J21 O33 O41 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/jep.20261505

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