AI job substitution rates are limited by business risks such as liability and compliance rather than technical capability alone, resulting in high exposure for cognitive roles like data scientists and resilience for physical trades.
The o-ring theory of economic development.The Quarterly Journal of Economics, 108(3):551–575, 1993
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Bounded by Risk, Not Capability: Quantifying AI Occupational Substitution Rates via a Tech-Risk Dual-Factor Model
AI job substitution rates are limited by business risks such as liability and compliance rather than technical capability alone, resulting in high exposure for cognitive roles like data scientists and resilience for physical trades.