Abstract: New technology is of little use if it is not adopted, and surveys show that less than 10% of firms use Artificial Intelligence. This paper studies the uptake of AI-driven automation and its impact on employment, using a dynamic agent-based model (ABM). It simulates the adoption of automation software as well as job destruction and job creation in its wake. There are two types of agents: manufacturing firms and engineering services firms. The agents choose between two business models: consulting or automated software. From the engineering firmsâ...
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Topics: 
Industrial organization
Industrial engineering
Engineering management