Can the Nexus of Scaling Laws Coupled with Constant or Variable Elasticity of Substitution Predict AI and Other Technology Adoption?

This paper introduces a method for linking technological improvement rates (i.e. Moore's Law) and technology adoption curves (i.e. S-Curves). There has been considerable research surrounding Moore's Law and the generalized versions applied to the time dependence of performance for other technologies. The prior work has culminated with methodology for quantitative estimation of technological improvement rates for nearly any technology. This paper examines the implications of s...

Experience curves are widely used to predict the cost benefits of increasing the deployment of a technology. But how good are such forecasts? Can one predict their accuracy a priori? In this paper we answer these questions by developing a method to make distributional forecasts for experience curves. We test our method using a dataset with proxies for cost and experience for 51 products and technologies and show that it works reasonably well. The framework that we develop hel...

The integration of Artificial General Intelligence (AGI) into economic production represents a transformative shift with profound implications for labor markets, income distribution, and technological growth. This study extends the Constant Elasticity of Substitution (CES) production function to incorporate AGI-driven labor and capital alongside traditional inputs, providing a comprehensive framework for analyzing AGI's economic impact. Four key models emerge from this fram...

Forecasting technological progress is of great interest to engineers, policy makers, and private investors. Several models have been proposed for predicting technological improvement, but how well do these models perform? An early hypothesis made by Theodore Wright in 1936 is that cost decreases as a power law of cumulative production. An alternative hypothesis is Moore's law, which can be generalized to say that technologies improve exponentially with time. Other alternative...

Diffusion processes are central to human interactions. One common prediction of the current modeling frameworks is that initial spreading dynamics follow exponential growth. Here, we find that, ranging from mobile handsets to automobiles, from smart-phone apps to scientific fields, early growth patterns follow a power law with non-integer exponents. We test the hypothesis that mechanisms specific to substitution dynamics may play a role, by analyzing a unique data tracing 3.6...

We study long-run progress in artificial intelligence in a quantitative way. Many measures, including traditional ones such as patents and publications, machine learning benchmarks, and a new Aggregate State of the Art in ML (or ASOTA) Index we have constructed from these, show exponential growth at roughly constant rates over long periods. Production of patents and publications doubles every ten years, by contrast with the growth of computing resources driven by Moore's Law,...

The accelerating development and deployment of AI technologies depend on the continued ability to scale their infrastructure. This has implied increasing amounts of monetary investment and natural resources. Frontier AI applications have thus resulted in rising financial, environmental, and social costs. While the factors that AI scaling depends on reach its limits, the push for its accelerated advancement and entrenchment continues. In this paper, we provide a holistic revie...

How do humans assess the performance of Artificial Intelligence (AI) across different tasks? AI has been noted for its surprising ability to accomplish very complex tasks while failing seemingly trivial ones. We show that humans engage in ``performance anthropomorphism'' when assessing AI capabilities: they project onto AI the ability model that they use to assess humans. In this model, observing an agent fail an easy task is highly diagnostic of a low ability, making them un...

A central question in economics is whether automation will displace human labor and diminish standards of living. Whilst prior works typically frame this question as a competition between human labor and machines, we frame it as a competition between human consumers and human suppliers. Specifically, we observe that human needs favor long tail distributions, i.e., a long list of niche items that are substantial in aggregate demand. In turn, the long tails are reflected in the...

New technologies have the power to revolutionize science. It has happened in the past and is happening again with the emergence of new computational tools, such as Artificial Intelligence (AI) and Machine Learning (ML). Despite the documented impact of these technologies, there remains a significant gap in understanding the process of their adoption within the scientific community. In this paper, we draw on theories of scientific and technical human capital (STHC) to study th...