AI and work: "Previous industrial revolutions have, in the long term, always created more jobs than they destroyed"

Artificial intelligence (AI) raises significant debates regarding employment and productivity, with contrasting views on its impact. While some argue that AI will lead to massive job losses, others believe it will create new sectors and opportunities. The balance between job destruction and creation remains uncertain, as highlighted by economist Daron Acemoglu, who warns of potential job losses without adequate compensation. Recent trends in the U.S. labor market show that while AI is eliminating jobs in information technology, it is simultaneously generating employment in industries like manufacturing, education, and healthcare. Historical industrial revolutions suggest that, in the long run, more jobs are created than lost, although this process takes time. Understanding the distinction between capacity investments that create jobs and rationalization investments that destroy jobs is crucial, as AI exemplifies both aspects.