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 or-wage-flexibility-in-an-ai-economy/calender.ics
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SUMMARY:The Hayekian case for wage flexibility in an AI economy
LOCATION:London School of Economics: Online public event
DESCRIPTION:Monday 28 September 2026 6.30pm - 8.30pmSpeakerProfessor Jason
  PottsArtificial intelligence is a shock to labour supply. The emerging po
 licy response wants a small number of large adjustments (e.g. social insur
 ance\, regulation\, macro policy). A feature of this is that the informati
 on requirements are small\, e.g. a few high-quality expert reports and pla
 ns. But AI applications and labor are both highly heterogeneous\, and dyna
 mically so. Those reports and plans will arrive parochial and dated and be
  useless to everyone except consultants\, politicians and journalists. In 
 practice\, economic adaptation will require a large number of small adjust
 ments\, requiring a flow of information reflecting specific conditions and
  local trade-offs.Hayek (1945\, 1948\, 1968) long-ago explained that this 
 is the role of prices and the role of competition is to generate those pri
 ces. If the global economy is to adapt to the massive AI shock it needs co
 mpetition and flexible prices in labour markets to discover where human la
 bour retains and loses value in an AI economy and to communicate that info
 rmation simply and widely. The rigid wage structures of industrial moderni
 ty prevent this price discovery and therefore prevent fast effective econo
 mic adaptation to this unprecedented looming shock.About the speakerJason 
 Potts is Professor of Economics at Alfiasal University in Riyadh\, Saudi A
 rabia and a research affiliate at Sloan School at MIT\, an editor of the J
 ournal of Institutional Economics\, and also a proud member of the Mont Pe
 lerin Society.More about this eventThe Hayek Programme in Economics and Li
 beral Political Economy is a research initiative based at STICERD. All web
 inar videos will be uploaded to the STICERD Youtube page a few weeks after
 . Due to various factors we cannot specify in advance when that will be.An
 y questions?You can contact us at b.cheang@lse.ac.uk.From time to time the
 re are changes to event details so we strongly recommend that if you plan 
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URL;VALUE=URI:https://www.lse.ac.uk/hayek/events/the-hayekian-case-for-wag
 e-flexibility-in-an-ai-economy
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