Labor Replacement

(1) Policy Definition

AI Labor Replacement is the gain for the GDP (economy) when AI is used to replace people who are missing because of active population decline.

The model in CCEM is simple : this percentage tells what part of the economy is executed by AI and robots, so that the output is not sensitive to labor availability or productivity changes.

AI replacement is positive when the population declines, it can be negative if the population grows.

Note that the global improvement of GDP productivity because of AI is captured by the "Tech Factor" of the GDP model. CCEM makes a difference betwen AI as productivity improvement (which can be augmentation or replacement) and the impact on the workforce (which is AI replacement).

(2) What the slider in  G2WS does ?

The slider simply changes the percentage of the workforce that a zone let be replaced by AI.

• The slider value is the percentage allowed by the zone.

• Notice that the slider is inactive at the World level (if you change it, it will have no effect and the resulting explanation is "inactive(World)".

When you change the slider, the control KPI is the amount GDP that was saved by AI replacement compared to the population evolution , expressed as a percentage of the total GDP.