AI, Full Unemployment, and Economic Theory

Integrating Artificial Intelligence (AI) into productive processes has raised concerns regarding its potential impact on unemployment. However, traditional economic literature suggests that the risk of AI leading to full or even mass unemployment is highly unlikely. Consequently, economists have almost never considered this topic worthy of theoretical attention. This article has three main objectives: (i) to challenge the validity of economists' views on mass and full unemployment arguing that, with the rise of AI, these topics should become objects of theoretical interest even if they are not yet observable in today's reality; (ii) to define the potential characteristics of mass and full unemployment equilibria by outlining their theoretical attributes; and (iii) to discuss policy measures that could either prevent AI's impact on unemployment or mitigate its negative consequences.