AI Economics

AI as Normal Technology

Summary

Narayanan and Kapoor argue that even transformative AI should be understood as a technology embedded in firms, markets, laws, and social institutions—not as an autonomous species. Capabilities matter, but economic effects also require products, adoption, organizational change, and diffusion.

Why it matters

The framework shifts attention from model progress alone to the slower complements that determine when a general-purpose technology changes productivity and everyday life.

What to keep in mind

The paper presents an interpretive worldview and policy framework rather than a precise forecast of AI capabilities or economic impact.

Sources