Economist: AI is a super-powered shirking technology, and moral hazard is inevitable

paulnovosad · x · 2026-11-09

Economist Paul Novosad explains the moral hazard of AI: people reduce effort when their effort is unobservable — renters abusing rental cars, CEOs taking excessive risk, referees phoning it in with AI. His verdict: AI is a super-powered shirking technology, and it's inevitable that many people will use it to shirk.

Related event: Economist Warns AI Brings Huge Academic Gains and Huge Integrity Risks(3 posts)→

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