Distributing the Windfall from Transformative Technologies (with Anton Korinek)

We are on the verge of developing transformative AI systems that promise to deliver unprecedented economic gains. This paper analyzes how an actor developing a transformative technology can best distribute the resulting windfall in order to benefit humanity at large. We develop four findings: First, instead of extracting large profits, a lab can create higher social welfare by passing the benefits of the technology to users via lower prices. Second, it can charge differential prices to redistribute benefits towards recipients who are especially in need, e.g., in poor countries or locations. Third, it can increase growth and welfare by prioritizing the use of TAI systems for R&D and investment over consumption. Fourth, a lab must pay particular attention to safety, which would be underprovided by competitive market forces.