Modeling the Complex Interplay: Dynamics of Job Displacement and Evolution of Artificial Intelligence in a Socio-Economic Landscape

Abstract

AbstractThis research explores the intricate dynamics of job displacement resulting from artificial intelligence (AI) using a sophisticated non-linear dynamical system modeled through the Lotka-Volterra equations, commonly employed in ecology to elucidate predator–prey dynamics. In this study, we interpret human jobs as the “prey” and AI technology as the “predator,” identifying two equilibrium points: E1 ≡ (0, 0) signifies a state with no jobs and no AI technology, while E2 ≡ (s/β, r/α) denotes a balanced coexistence where job growth and AI development are in equilibrium. Qualitative analysis reveals four regions characterized by different trends in job expansion and AI development, with Region IV indicating a co-evolutionary phase marked by positive feedback. Stability analysis demonstrates that while E1 remains consistently unstable, E2 remains stable, providing valuable insights into system dynamics. Scenarios presented suggest a promising future where balanced growth fosters sustainable coexistence between human workers and AI, although challenges arise when AI outpaces human job growth, emphasizing the necessity of effective policy responses to mitigate adverse effects and maximize the benefits of technological advancement. Understanding these dynamics is crucial for policymakers to navigate the complexities of AI-induced job displacement and ensure equitable societal outcomes.