By Cell
Published on January 13, 2025
This study explores the often-overlooked influence of artificial intelligence (AI) on wealth distribution. Using a continuous-time heterogeneous agent dynamic general equilibrium model, we investigate AI’s impact on production technology as a form of biased technological progress. Our findings highlight a temporal dichotomy in AI’s effects on wealth inequality: in the short term, AI exacerbates disparities in wealth distribution, while the long-term outcomes depend on the extent of AI’s influence across different technological domains.