Moravec's Paradox and Restrepo's Model: Limits of AGI Automation in Growth
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arXiv
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| Format: | Preprint |
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2025
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| _version_ | 1866916976287285248 |
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| author | Bara, Marc |
| author_facet | Bara, Marc |
| contents | This note extends Restrepo (2025)'s model of economic growth under AGI by incorporating Moravec's Paradox -the observation that tasks requiring sensorimotor skills remain computationally expensive relative to cognitive tasks. We partition the task space into cognitive and physical components with differential automation costs, allowing infinite costs for some physical bottlenecks. Our key result shows that when physical tasks constitute economic bottlenecks with sufficiently high (or infinite) computational requirements, the labor share of income converges to a positive constant in the finite-compute regime (rather than zero). This fundamentally alters the distributional implications of AGI while preserving the growth dynamics for cognitive-intensive economies. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2509_24466 |
| institution | arXiv |
| publishDate | 2025 |
| record_format | arxiv |
| spellingShingle | Moravec's Paradox and Restrepo's Model: Limits of AGI Automation in Growth Bara, Marc General Economics Economics Artificial Intelligence 91B55 This note extends Restrepo (2025)'s model of economic growth under AGI by incorporating Moravec's Paradox -the observation that tasks requiring sensorimotor skills remain computationally expensive relative to cognitive tasks. We partition the task space into cognitive and physical components with differential automation costs, allowing infinite costs for some physical bottlenecks. Our key result shows that when physical tasks constitute economic bottlenecks with sufficiently high (or infinite) computational requirements, the labor share of income converges to a positive constant in the finite-compute regime (rather than zero). This fundamentally alters the distributional implications of AGI while preserving the growth dynamics for cognitive-intensive economies. |
| title | Moravec's Paradox and Restrepo's Model: Limits of AGI Automation in Growth |
| topic | General Economics Economics Artificial Intelligence 91B55 |
| url | https://arxiv.org/abs/2509.24466 |