

Oxford Economist in the NYT says that AI is going to kill cities if they don’t prepare for change. (Original, paywalled)
I feel like this is at most half the picture. The analogy to new manufacturing technologies in the 70s is apt in some ways, and the threat of this specific kind of economic disruption hollowing out entire communities is very real. But at the same time as orthodox economists so frequently do his analysis only hints at some of the political factors in the relevant decisions that are if anything more important than technological change alone.
In particular, he only makes passing reference to the Detroit and Pittsburgh industrial centers being “sprawling, unionized compounds” (emphasis added). In doing so he briefly highlights how the changes that technology enabled served to disempower labor. Smaller and more distributed factories can’t unionize as effectively, and that fragmentation empowers firms to reduce the wages and benefits of the positions they offer even as they hire people in the new areas. For a unionized auto worker in Detroit, even if they had replaced the old factories with new and more efficient ones the kind of job that they had previously worked that had allowed them to support themselves and their families at a certain quality of life was still gone.
This fits into our AI skepticism rather neatly, because if the political dimension of disempowering labor is what matters then it becomes largely irrelevant whether LLM-based “AI” products and services can actually perform as advertised. Rather than being the central cause of this disruption it becomes the excuse, and so it just has to be good enough to create the narrative. It doesn’t need to actually be able to write code like a junior developer in order to change the senior developer’s job to focus on editing and correcting code-shaped blocks of tokens checked in by the hallucination machine. This also means that it’s not going to “snap back” when the AI bubble pops because the impacts on labor will have already happened, any more than it was possible to bring back the same kinds of manufacturing jobs that built families in the postwar era once they had been displaced in the 70s and 80s.
And once it does they’ll quietly stop talking about it for a while to “focus on the human stories of those affected” or whatever until the nostalgic retrospectives can start along with the next thing.