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Proof #4 5/12/08 @ 11:16 am INT COLOR

t he sin g u l a rit y | specia l rep o rt


Stuffed into skyscrapers by the billion,
brainy bugbots will be the knowledge workers
of the future By Robin Hanson

Economics Of
The Singularity

O
ur global economy would stupefy a Roman
­merchant as much as the Roman economy would
have confounded a caveman. But we would be sim-
ilarly amazed to see the economy that awaits our
grandchildren, for I expect it to follow a societal
discontinuity more dramatic than those brought on
by the agricultural and industrial revolutions. The key, of course, is
technology. A revolutionary speedup in economic growth requires
an unprecedented and remarkable enabling tool. Machine intelli-
gence on a human level, if not higher, would do nicely. Its arrival
could produce a singularity—an overwhelming departure from
prior trends, with uneven and dizzyingly rapid change thereafter.
A future shock to end future shocks.
Yes, this theory of mine is a social and just around the corner. Finally, I will out-
economic one, and therefore not as unfail- line its possible consequences.
ingly accurate or testable as one in the A complex device, like a tractor or a build-
physical sciences. Nevertheless, social sci- ing, can have thousands of parts, and each
entists routinely make short-term forecasts part can rely on dozens of technologies. Yet
that hit the mark, and economists often in most cases even a spectacular gain in
offer insightful forecasts about unprece- the quality of one part bestows at best only
dented situations. a small improvement on the whole. Keep
So indulge me as I outline how we econ- improving a part in successive increments
omists view technological change. In so of equal degree and you’ll get ever smaller
doing, I hope to explain why it’s reasonable gains to the whole. This is the law of dimin-
to view past history as a series of abrupt, ishing returns, and it applies not only to
seemingly unheralded transitions from devices and organizations but to entire in-
bryan christie design

one economic era to another, transitions dustries. Consider your personal ­computer:
marked by the sudden and drastic increase every couple of years its power-to-cost ­ratio
in the rate of economic growth. I will then has doubled, and yet as you go from one gen-
show why another singularity is perhaps eration to the next, you probably notice only

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T
How Many he world economy, which now Whatever may have been the key
innovations behind these transitions, it is
construction each account for only a small
percentage of economic activity. Even so
Singularities Have doubles in 15 years, would soon clear that they were far more potent than extraordinary an innovation as radical
There Been? double in a week to a month such familiar textbook examples of great
innovations as fire, writing, computers, or
nanotechnology would do no more than
dramatically lower the cost of capital for
The two solidly demonstrated plastics. Most innovations happen within manufacturing, which now makes up less
a given growth era and do not change its than 10 percent of U.S. GDP.
t he sin g u l a rit y | specia l rep o rt

­singularities, the agricultural and industrial


revolutions, came with little warning. basic nature, including its basic growth No, the next radical jump in economic
Were there any singularities before
ing factors. Deceleration typically ensues economic growth during the agricul- rate. A few exceedingly rare innovations, growth seems more likely to come from
farming and industry? If we look back
further in time, we can find even slower as innovators exhaust the easy ideas— tural era may seem in the aftermath of however, do suddenly change everything. something that has a profound effect Expert View:
modes of growth that made sudden the low-hanging fruit. But acceleration the Industrial Revolution, it was actu- One such innovation led to agriculture; on everything, because it addresses the John Casti
transitions to faster modes. For example, also ensues as the economy, by getting ally lightning fast compared with that of another led to industry. one permanent shortage in our entire
human hunter-gatherers vastly expanded larger, enables its members to explore an the economic era that came before, which Therefore, we must admit that another ­e conomy: human time and attention. WHO HE IS
their niche and spread throughout the world Senior Research Scholar,
in a biologically short period of time. That
ever-increasing number of innovations. was based on hunting and gathering. singularity—at least the third one, and They are by far the most productive the International Institute
transition apparently was made possible by We have the tools to measure the In the roughly 2 million years our perhaps the fifth, depending on how you components of today’s economy. About for Applied Systems Analysis,
in Laxenburg, Austria, and
special innovations in the unusually large world’s economic product not only for ancestors lived as hunters and gath- count—could lie ahead. Furthermore, two‑thirds of all income in the rich coun- cofounder of the Kenos Circle,
protohuman brain. Before that transition, today—it’s about US $50 trillion per year— erers, the population rose from about data on these previous apparently simi- tries is paid directly for wages, and much a Vienna-based society for
and after the emergence of animals exploration of the future.
but also for times long past. A few years 10 000 protohumans to about 4 ­million lar singularities are some of the few con- of the remaining third represents indi-
some 500 million years earlier, the largest Builds computer simulations
animal brains doubled in size roughly every ago Angus Maddison, an economic his- modern humans. If, as we believe, the crete guides available to what such a tran- rect costs of labor. (For example, corpo- of complex human systems,
30 million years—less than 1 percent of the torian at the University of Groningen, in growth pattern during this era was sition might look like. We would be fools rate income largely reflects earlier efforts like the stock market,
growth rate of human brains. the Netherlands, plotted a graph of world fairly steady, then the population must if we confidently expected all patterns to by entrepreneurs.) So any innovation that highway traffic, and the
Looking further back, it is difficult to find insurance industry. Author of
economic product—basically everything have doubled about every quarter mil- continue. But it strikes me as pretty fool- could replace or dramatically improve popular books about science,
long-term trends that may have paved the
way for the emergence of animals. Still,
of value produced globally: bananas, sub- lion years, on average. Then, beginning ish to ignore the patterns we see. human labor would be a very big deal. both fiction and nonfiction,
including The Cambridge

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it is interesting to note that the volume of marines, magazine articles, you name it. about 10 000 years ago, a few of those If a new transition were to show the Quintet, a fictional account of
our nearly 14 billion-year-old universe has It shows that from 1950 to 2003, growth 4 million humans began to settle down same pattern as the past two, then growth ne of the pi l l a r s of a dinner-party conversation
been expanding exponentially due to a was relatively steady. During that time, and live as farmers. The resulting com- would quickly speed up by between the modern singularity about the creation of a
mysterious “dark energy,” with a doubling thinking machine.
despite enormous technical change, no munities grew so fast that they quickly 60‑ and 250-fold. The world economy, hypothesis in its many
time of 3 billion years—about 1 percent the
growth rate of animal brain size. particular technology left much of a fin- accounted for most of the world popula- which now doubles in 15 years or so, would forms is that intelligence SINGULARITY
gerprint on the data; no short-term accel- tion. From that time on, the farming pop- soon double in somewhere from a week is a general elixir, able to WILL OCCUR
Of course, because we have no accepted
Within 70 years
theory saying why various growth modes erations in growth could be attributed to ulation doubled about every 900 years— to a month. If the new transition were cure many if not all economic ailments.
and transitions should be related, any this or that technological development. some 250 times as fast as before. as gradual (in power-law terms) as the Typically, this belief is expressed in the MACHINE
similarities between them may be pure CONSCIOUSNESS
coincidence. But they do constitute
Also, Maddison’s data offer little support Our understanding of the existence, Industrial Revolution was, then within form of an argument that the arrival of WILL OCCUR
precedents, for they show that vast changes for the idea that innovation and growth nature, and relevance of these transi- three years of a noticeable departure very intelligent machines will produce Questionable
can appear seemingly overnight.  —R.H. have been accelerating recently. tions clearly becomes more specula- from typical fluctuations, it would begin the next singularity. Some people hope
MOORE’S LAW
Now look at the data for world product tive the further back we look in time to double annually, and within two more this arrival will follow a new Einstein, WILL CONTINUE FOR
over the past 7,000 years, estimated by [see sidebar, “How Many Singularities years, it might grow a million-fold. If the who will discover a powerful general 20 more years with
a small improvement as you plug away on Bradford DeLong, an economic historian at Have There Been?”]. There may well new transition were as rapid as the agri- theory of intelligence applicable to those current technology

your word processors and spreadsheets. the University of California, Berkeley. The have been two earlier singularities that cultural revolution seems to have been, machines. Others envision an “intelli- THOUGHTS
It turns out that most of these small, data here tell a somewhat different story. started eras of this sort, although our change would be even more sudden. gence explosion” via a series of powerful “I think it’s scientifically and
philosophically on sound
innovative gains come not from research For most of that time, growth proceeded at ability to identify them and weigh their Though such growth may seem pre- design innovations, beginning with one footing. The only real issue
labs but from hands-on builders and a relatively steady exponential rate, with a rele­vance is very speculative. I suggest posterous, consider that in the era of that would make machines smart enough for me is the time frame
users. So the more a thing gets used, doubling of output about every 900 years. an era defined by the growth of the brain hunting and gathering, the economy dou- to help us quickly find a second innova- over which the singularity
will unfold. [The singularity
the more it tends to improve. It doesn’t But within the past few centuries, some- from the emergence of animal life to the bled nine times; in the era of farming, it tion, allowing even smarter machines, represents] the end of the
matter whether that thing is a physical thing dramatic happened: output began first protohumans and perhaps an ear- doubled seven times; and in the cur- and so on. A few even imagine innova- supremacy of Homo sapiens
device, such as a car, or a social organi- doubling faster and faster, approaching a lier era defined by the growth of the uni- rent era of industry, it has so far doubled tions so unprecedentedly potent that a as the dominant species on
planet Earth. At that point
zation, such as a corporation. new steady doubling time of about 15 years. verse from a time shortly after the big 10 times. If, for some as yet unknown single machine embodying the first inno- a new species appears, and
If any large system of interacting That’s about 60 times as fast as it had been bang to the first animals. reason, the number of doublings is sim- vation could go through the entire inno- humans and machines will
go their separate ways, not
parts tends to improve by smooth gra- in the previous seven millennia. So we have perhaps five eras during ilar across these three eras, then we vation series by itself, unnoticed, within a merge one with the other. I do

W
dations, then we should expect ­systems which the thing whose growth is at issue— seem already overdue for another tran- week, and then take over the world. not believe this necessarily
of systems, with their larger number of e call this transition the universe, brains, the hunting economy, sition. If we instead compare our era There are many views on how intel- implies a malevolent
machine takeover; rather,
components and interactions, to improve the Industrial Revolu­ the farming economy, and the industrial with the era of brain growth, which dou- ligence might arise in a machine. One machines will become
even more smoothly. By this reason- tion, but that does not economy—doubled in size at fixed inter- bled 16 times before humans appeared, argument holds that hardware is the increasingly uninterested in
ing, the world economy should improve mean we understand it vals. Each era of growth before now, how- we would expect the next transition by critical limiting factor and predicts that human affairs just as we are
uninterested in the affairs
most smoothly of all. The world econ- well or even know pre- ever, has eventually switched suddenly to around 2075. human-level machine intelligence will of ants or bees. But in my
omy consists of the largest number of cisely how and why it arose. But what- a new era having a growth rate that was What innovation could possibly come soon after we have computer hard- view it’s more likely than
not that the two species will
inter­acting parts of any man-made sys- ever the Industrial Revolution was, between 60 and 250 times as fast. Each induce so fabulous a speedup in economic ware whose performance is comparable comfortably and more or less
tem, and everyone not stranded on an clearly it was an event worthy of the switch was completed in much less time growth? It is easier to say what could not. with that of the human brain. peacefully coexist—unless
uncharted island contributes to the name “singularity.” than it had taken the previous regime to Because of diminishing returns, no change Another argument focuses on knowl- human interests start
to interfere with those of
improvements in all those parts by using If we look further back, we see what double—from a few millennia for the agri- that improved just one small sector of the edge as the true limiting factor. This the machines.”
them. Finally, in each economic era the appears to be at least one previous cultural revolution to a few centuries for economy could do the trick. In advanced view is behind several huge artificial-
John Casti

question of whether growth speeds up ­singularity—the transition to an econ- the industrial one. These switches consti- countries today, farming, mining, energy, ­i ntelligence database projects, includ-
or slows down depends on two compet- omy based on agriculture. And slow as tuted singularities. communications, transportation, and ing Cyc, under construction for 23 years

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100 000 ing achievement, but it is not imme- pay of saddle makers and stable hands, an
diately obvious that it would launch a example of the substitution effect.
Agricultural era new era of much faster growth, with So far, machines have displaced rel-
Industrial era doubling times measured in months atively few human workers, and when
10 000
Source: Bradford DeLong, or less. After all, more and more capa- they have done so, they have in most

World product (billions of 1990 US dollars)


economics professor,
University of California, Berkeley ble machines have been replacing and cases greatly raised the incomes of other
aiding humans for centuries with- workers. That is, the complementary
t he sin g u l a rit y | specia l rep o rt

1,000 out sparking such an explosion. To effect has outweighed the substitution
answer that objection, we’ve got to effect—but this trend need not continue.
start with the fundamentals: what eco- In our graph of machines and humans, Expert View:
nomic theory says about growth rates. imagine that the ocean of machine tasks T.J. Rodgers

T
Spot the 100 reached a wide plateau. This would
transition: WHO HE IS
o keep a modern economy happen if, for instance, machines were Founder and CEO of Cypress
After millennia
thriving, we must accomplish almost capable enough to take on a vast Semiconductor Corp., in San
of slow growth Jose, Calif., known for his
tied to rising many mental tasks. Some peo- array of human jobs. For example, it
10 brash opinions about the
population, the ple (we call them engineers) might occur if machines were on the very business world and politics.
world economy have to design new products, cusp of human-level cognition. In this Owner of the Clos de la Tech
took off. For the winery and vineyards, in
systems, and services. Other people have situation, a small additional rise in sea California, where he’s trying
first time ever,
output per capita
to build, market, transport, distribute, and level would flood that plateau and push to make the best American
1
maintain them, and so on. These myriad the shoreline so far inland that a huge pinot noir.
rose above mere
subsistence tasks are mostly complements, so that number of important tasks formerly in SINGULARITY
levels. It’s been doing one task better increases the value the human realm were now achievable WILL OCCUR
rising ever since. Never
of doing other tasks well. But for each task, with machines. We’d expect such a wide
5000 B.C. 4000 B.C. 3000 B.C. 2000 B.C. 1000 B.C. 0 A.D. 1000 A.D. 2000 humans and machines may also be substi- plateau if the cheapest smart machines THOUGHTS
Year tutes; it can be a wasted effort to have them were whole-brain emulations whose rel- “I don’t believe in
technological singularities.
both do the same task. ative abilities on most tasks should be It’s like extraterrestrial
The relative advantages of humans close to those of human beings. life—if it were there,
and now at Cycorp in Austin, Texas. Cyc has rights is another story, to which I An emulation of a brain could merely and machines vary from one task to the In such a scenario, the economy would we would have seen it
by now. However, I do
now possesses millions of pieces of com- will return later. do what that brain can already do, next. Imagine a chart resembling a top- start growing much faster, for three rea- believe in something
monsense knowledge, added mostly by If current trends continue, we should although if done in sufficiently power- ographic cross section, with the tasks sons. First, we could create capable that is more powerful
hand. Eventually, Cyc may know enough have computer hardware and brain ful hardware, the cognition might occur that are “most human” forming a human machines in much less time than it takes because it is real—namely,
exponential learning. An
to begin to read and assimilate all writ- scans fast and cheap enough to support faster. Still, even if all we were able to advantage curve on the higher ground. to breed, rear, and educate new human exponential function has
ten knowledge, and the more it knows, this scenario in a few decades. What may achieve was a computer with the men- Here you find chores best done by humans, workers. Being able to make and retire the property that its slope
is proportional to its value.
the faster it should be able to learn. So well take longer are input-output models tal powers of a particular human, that like gourmet cooking or elite hairdressing. machine workers as fast as needed could The more we know, the
it is possible, though hardly inevitable, in sufficient detail for every relevant type would be more than just interesting— Then there is a “shore” consisting of tasks easily double or quadruple growth rates. faster we can learn.
that Cyc will eventually undergo a rapid of human neuron part. But I think those it would also be incredibly useful. that humans and machines are equally Second, the cost of computing has long “Technological transitions
are required to maintain
knowledge explosion. details will accrue in time. We already Though it might cost many billions of able to perform and, beyond them an been falling much faster than the econ- an exponential rate of
I find those scenarios interesting but have sufficient models for some types dollars to build one such machine, the “ocean” of tasks best done by machines. omy has been growing. When the work- learning. The first airplanes
unlikely to come to pass anytime soon. of neuronal components, gathered after first copy might cost only millions and When machines get cheaper or smarter force is largely composed of computers, were certainly not as
good as well-appointed
Regarding advanced machine intelli- only a modest effort. And we have no rea- the millionth copy perhaps thousands or both, the water level rises, as it were, the cost of making workers will there- trains in moving masses
gence, my guess is that our best chance son to expect the other types to be harder. or less. Mass production could then sup- and the shore moves inland. fore fall at that faster rate, with all that comfortably, but the
transition later proved
of achieving it within a century is to This sea change has two effects. First, this entails for economic growth.

B
essential to maintaining
put aside the attempt to understand the machines will substitute for humans by Third, as the economy begins growing
rain emulation would simulate
our progress in human
mind, at least for now, and instead sim- taking over newly “flooded” tasks. Second, faster, computer usage and the resources mobility. Gene splicing is a
breakthrough technology
ply focus on copying the brain.
This approach, known as whole
the “uploaded mind” of whoever doing machine tasks better complements
human tasks, raising the value of doing
devoted to developing computers will
also grow faster. And because innova-
but has not yet done (or
been allowed to do) a lot for
brain emulation, starts with a real served as the template them well. Human wages may rise or fall, tion is faster when more people use and mankind. That will change.
“I don’t believe in the good
human brain, scanned in enough detail depending on which effect is stronger. study something, we should expect com- old days. We will be freer,
to see the exact location and type of each For example, in the 1920s, when the puter performance to improve even faster more well-educated and
even smarter in the future—
part of each neuron, such as dendrites, mass-produced automobile came along, than in the past. but exponentially so, not as
axons, and synapses. Then, using mod- Project Blue Brain, a joint effort by IBM ply what has so far been the one factor of it was produced largely by machines, Together these effects seem quite a result of some singularity.”
els of how each of these neuronal com- and the Ecole Polytechnique Fédérale production that has remained critically with human help. So machines domi­ capable of producing economic dou-
ponents turns input signals into output de Lausanne, in Switzerland, has made scarce throughout human history: intel- nated that function—the assembly of cars. bling times much shorter than anything
signals, you would construct a computer some impressive progress: in December ligent, highly trained labor. The resulting proliferation of machine- the world has ever seen. And note that
model of this specific brain. With accu- 2006, the project finished mapping and Okay, so might these machines be ­assembled cars raised the value of related this forecast does not depend on the
rate enough models and scans, the final modeling the 10 000-odd neurons and conscious, with wills of their own, and human tasks, such as designing those rate at which we achieve machine intel-
simulation should have the same input- 30 million synapses in a rat’s neocortical if so, could they be selfish, even malevo- cars, because the financial stakes were ligence capabilities or the rate at which
Cypress Semiconductor

output behavior as the original brain. column. Similarly impressive, in 2004 a lent? Yes, yes, yes, and yes. More on that now much higher. Sure enough, auto­ the intelligence of machines increases.
It would, in a sense, be the “uploaded Stockholm University team observed later; for now, let’s get back to the eco- mobiles raised the wages of machinists Merely having computer-like machines
mind” of whoever served as the template. realistic behavior in a simulation of nomic argument. and designers—in these cases, the com- able to do most important mental tasks
Whether the emulation indeed consti- 8 million neurons and 4 billion synapses. C reat i ng hu ma n-level i ntel le c t plementary effect dominated. At the same as well as humans do seems sufficient to
tutes a person and whether that person But we still have far to go. in a machine would be an astound- time, the automobile industry lowered the produce very rapid growth.

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ife in a robot economy would idly, depending on the shape of the human tures would do the same sorts of things
not be merely a sped-up ver- advantage landscape. After the flood of the in their virtual realities and skyscrapers
sion of our lives today. When plateau, there might still be some moun- that humans have done for hundreds of
I apply basic economic theory tain peaks of human tasks left. Some rich thousands of years: form communities
and some common sense to this people might still want to be served and and coalitions, fall in love, gossip, argue,
scenario, I conclude that humans would entertained by real human beings. So for make art, commit crimes, get work done,
probably be neither the immortal, all- those jobs, human wages could rise. But if innovate, and have fun. Just as farming
t he sin g u l a rit y | specia l rep o rt

powerful gods that some hope for nor the in the end the machine ocean completely was more alien to our human nature than
hated and hunted prey that some fear. inundated all of Task‑Land, then wages hunting and gathering, and industry was
Yes, robot-human wars would be would fall so far that most humans would more alien still, their world would be even
possible, but it is important to remem- not, through their labor alone, be able to more distant from human origins. But
b er t hat few d i f ferences b et ween live on them, though they might work for human nature seems flexible enough to
humans ever lead to war. We do not other reasons. accommodate such changes.
fear that the short will conspire to mur- In either case, human labor would no The population of smart machines
der the tall in their sleep, nor that the longer earn most income. Owners of real would explode even faster than the
right-handed will exterminate the left- estate or of businesses that build, main- economy. So even though total wealth
handed. Short, tall, left-handed, and tain, or supply machines would see their would increase very rapidly, wealth per
right-handed people all trade with, wealth grow at a fabulous rate—about as machine would fall rapidly. If these smart
befriend, and marry one another with fast as the economy grows. Interest rates machines are considered “people,” then
abandon, making such wars almost would be similarly great. Any small part most people would be machines, and per-
unthinkable. Instead, wars today hap- of this wealth should allow humans to person wealth and wages would quickly
pen between largely separate nations live comfortably somewhere, even if not fall to machine-subsistence levels, which
and ethnic groups. Similarly, robots as all-powerful gods. would be far below human-subsistence
well-integrated into our economy would Because copying a machine mind levels. Salaries would probably be just
be unlikely to exterminate us. would be cheap, training and education high enough to cover the rent on a tiny
would cost no more than a software update. body, a few cubic centimeters of space, the
Instead of long years to train each worker, odd spare part, a few watts of energy and
a few machines would be trained intensely, heat dumping, and a Net connection.
and then many copies would be made of While copying would make robot
the very best trainees. Presumably, strong immortality feasible in principle, few
security would prevent bootleg copies. robots would be able to afford it. And
O rga ni zat iona l dec ision c ycles when reproduction via copying domi-
nates, few robots would be able to afford

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ages could fall so far robot versions of human children.
While whole-brain-emulation robots
that most humans would be copies of particular humans,
we should expect vast inequality in copy
could not live on them rates. Investors who paid the high costs
for scanning a human brain would care-
Would robots be slaves? Laws could would shorten, favoring streamlined, fully select the few humans most likely
conceivably ban robots or only allow decentralized processes run by fast to be flexible, cooperative, and produc-
robots “born” with enough wealth to machine minds in key positions of tive workers, even while living a short,
afford a life of leisure. But without global authority. Fast minds could be whole- hardscrabble, childless, and alien life in
and draconian enforcement of such laws, brain emulations sped up relative to robotic bodies or virtual offices. Investors
the vast wealth that cheap robots offer human brains. This scenario would who paid for copying existing machine
would quickly induce a sprawling, unruly marginalize slow bureaucratic human minds would select robots with a track
black market. Realistically, since modest committees, regulators, and the like. record of achieving this ideal. As a result,
enforcement could maintain only modest Fast growth rates would likely discour- there would be large first-mover advan-
restrictions, huge numbers of cheap (and age slow long-distance transport and tages and winner-take-all effects. For
thus poor) robots would probably exist; encourage local production. example, if docile minds turned out to be
only their legal status would be in question. Some robots responsible for admin- the most productive, then the robot world
Depending on local politics, cheap robots istration, research, law, and other cogni- might consist mainly of trillions of copies
could be “undocumented” illegals, legal tive work might live and work entirely in each of a few very docile human minds.
slaves of their creators or owners, “free” virtual environments. For others, crude In this case, the meek would indeed
minds renting their bodies and services calculations suggest that tiny bodies a inherit the Earth. o
and subject to “eviction” for nonpayment, few millimeters tall, with sped-up minds
or free minds saddled with debts and sub- to match their faster body motions, might TO PROBE FURTHER For additional
ject to “repossession” for nonpayment. allow insectlike urban densities, with resources on reconstructing the deep economic
The following conclusions do not much many billions living in the volume of a past, speculations on a rapid intelligence
depend on which of these cases is more current skyscraper, paying astronomical explosion, and the likely effects of machine
common. For example, in any of these rents that would exclude most humans. intelligence on economic growth, see http://
cases human wages would rise or fall rap- As emulations of humans, these crea- spectrum.ieee.org/jun08/singularityprobe.

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