Agree with most of the points in this post. I would add “market power” to your list of important assumptions that often go unaddressed. Most economic models have a background assumption perfect or near-perfect competition, unless they are explicitly trying to model monopolies/oligopolies or monopsonies. Yet I expect AI is far more likely than previous technologies to concentrate market power (especially on the hardware side).
Agree with most of the points in this post. I would add “market power” to your list of important assumptions that often go unaddressed. Most economic models have a background assumption perfect or near-perfect competition, unless they are explicitly trying to model monopolies/oligopolies or monopsonies. Yet I expect AI is far more likely than previous technologies to concentrate market power (especially on the hardware side).