In the long term, the economic incentives for automation will push AI to take over an ever-expanding set of tasks. All else being equal, it is less expensive to buy machines or AI software than to pay ongoing labor costs.[86] When business owners are designing their operations, they often have some flexibility over the balance between capital and labor. In places where wages are relatively low, it makes more sense to use labor-intensive processes. Where wages are high, there’s more of an incentive to innovate and design machines that require less labor. This is likely one reason why Great
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