--- title: "AI and policy: what makes AI different? · AI Fault Line" url: https://aifaultline.com/research/p/doi-10-1093-epolic-eiae067/ description: "AI Fault Line is a neutral, evidence-cited field guide to why experts looking at the same developments disagree about AI's effect on productivity, jobs, inequality, regulation and the pace of change." --- [Research](https://aifaultline.com/research/) # AI and policy: what makes AI different? [Emilio Calvano](https://aifaultline.com/authors/emilio-calvano/), [Giacomo Calzolari](https://aifaultline.com/authors/giacomo-calzolari/) · Economic Policy · 1 Jan 2025 [Read original source](https://doi.org/10.1093/epolic/eiae067) Open access Where this sits in the debate - [Should governments act on AI now?](https://aifaultline.com/debate/regulation/) · its finding: it depends ([why studies differ](https://aifaultline.com/debate/regulation/#why)) Direction of the finding as read from the abstract by an AI model ([AI-written](https://aifaultline.com/about/)). ## Abstract Does artificial intelligence (AI) present a fundamentally new challenge for policy, or does it simply magnify issues already familiar from previous technological waves? On one hand, AI carries forward many challenges that policymakers have grappled with in the past—though their significance may shift in the AI context. On the other hand, AI introduces new opportunities and challenges. These uncharted complexities demand more research and entirely fresh policy approaches. Artificial intelligence (AI) is no longer a speculative or emerging technology but a transformative force affecting firms, workers and economic institutions. Recent studies show its deep integration into economies, highlighting its dual role as a driver of innovation and a source of significant social changes both at the macro and micro levels. In Europe, employment shares in AI-exposed occupations have increased, particularly among younger and more skilled workers, as shown by Albanesi et al. (2025). These changes, however, vary across EU countries, depending on education systems, regulatory frameworks and technology diffusion rates. In the United States, research by Bonfiglioli et al. (2025) reveals a polarizing impact: AI has displaced low-skill and production jobs while creating opportunities for high-wage and STEM-based professions. The impact of AI is also likely to differ significantly across countries at different levels of development or with different economic structures (Cazzaniga et al., 2024). Advanced economies are more vulnerable to and better prepared to capitalize on AI advancements due to their reliance on problem-solving and analytical skills. Meanwhile, emerging markets and developing economies risk falling behind in early productivity benefits due to inadequate infrastructure and human capital. Beyond labor markets, AI technologies, particularly foundation models, reshape production chains and market structures inside and outside the AI industry. Within the industry, Korinek and ## About this publication **Leading field journal.** A leading journal in economics or a neighbouring field (on the Tinbergen Institute’s A list or near the top of the RePEc ranking), or a top-rated computer-science venue. Placed by: Leading field journal. [How sources are ranked](https://aifaultline.com/about/#source-ranking). Published 2025 (22 months ago) Citations 4 (OpenAlex) ## Citations in context [Chart: 4 citations, cohort median 10] 4 citations — 42nd percentile among the 33 indexed papers from 2025 in this collection. Citation counts favor older papers; this compares only same-year papers here, not the whole literature. [Chart: published 2025] □ added to this collection in 2026. Emilio Calvano, Giacomo Calzolari signed the wemustactnow.ai letter · author affiliation matches seed institution european university institute — part of why this paper is in the collection. ## Cited elsewhere in this guide - [Evidence for Emilio Calvano's position on “Should governments act on AI now?”](https://aifaultline.com/debate/regulation/) - [Evidence for Giacomo Calzolari's position on “Should governments act on AI now?”](https://aifaultline.com/debate/regulation/) ## More on this topic Related by theme, not necessarily by method or conclusion. - [The Effects of Generative AI on High Skilled Work: Evidence from Three Field Experiments with Software Developers](https://aifaultline.com/research/p/doi-10-2139-ssrn-4945566/) SSRN · 2024 - [GPTs are GPTs: An Early Look at the Labor Market Impact Potential of Large Language Models](https://aifaultline.com/research/p/doi-10-48550-arxiv-2303-10130/) arXiv · 2023 - [Extending “GPTs Are GPTs” to Firms](https://aifaultline.com/research/p/doi-10-1257-pandp-20251045/) AEA Papers and Proceedings · 2025 - [New Frontiers: The Origins and Content of New Work, 1940–2018](https://aifaultline.com/research/p/doi-10-1093-qje-qjae008/) The Quarterly Journal of Economics · 2024 Overview assembled automatically from collected metadata. [How this site is built](https://aifaultline.com/about/).