AI labor substitution creates short-term efficiency by masking the erosion of human capability, apprenticeship pipelines, and institutional memory, producing long-term fragility.
(2025).How retrainable are AI-exposed workers? Federal Reserve Bank of New York Staff Reports, No
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Short-Term Gain, Long-Term Fragility: AI Labor Substitution and the Erosion of Sustainable Capability
AI labor substitution creates short-term efficiency by masking the erosion of human capability, apprenticeship pipelines, and institutional memory, producing long-term fragility.