Generative Artificial Intelligence (AI) stands as a transformative force that presents a paradox; it offers unprecedented opportunities for productivity growth while potentially posing significant threats to economic stability and societal wellbeing. Many consider generative AI as akin to previous technological advancements, using historical precedent to argue that fears of widespread job displacement are unfounded, while others contend that generative AI`s unique capacity to undertake non-routine cognitive tasks sets it apart from other forms of automation capital and presents a threat to the quality and availability of work that underpin stable societies. This paper explores the conditions under which both may be true. We posit the existence of an AI-capital-to-labour ratio threshold beyond which a self-reinforcing cycle of recessionary pressures could be triggered, exacerbating social disparities, reducing social cohesion, heightening tensions, and requiring sustained government intervention to maintain stability. To prevent this, the paper underscores the urgent need for proactive policy responses, making recommendations to reduce these risks through robust regulatory frameworks and a new social contract characterised by progressive social and economic policies. This approach aims to ensure a sustainable, inclusive, and resilient economic future where human contribution to the economy is retained and integrated with generative AI to enhance the Mental Wealth of nations.

翻译：生成式人工智能作为一股变革力量，呈现出一个悖论：它在为生产力增长提供前所未有机遇的同时，也可能对经济稳定和社会福祉构成重大威胁。许多人将生成式人工智能视同以往的技术进步，通过历史先例论证对大规模失业的担忧毫无根据；另一些人则主张，生成式人工智能执行非例行认知任务的独特能力使其有别于其他形式的自动化资本，并对维系社会稳定所需的工作质量和可获得性构成威胁。本文探讨了两种观点同时成立的条件。我们假设存在一个AI资本与劳动力比例阈值，一旦超越该阈值，可能触发自我强化的衰退压力循环，加剧社会不平等、削弱社会凝聚力、激化紧张局势，并需要政府持续干预以维持稳定。为防止这一情况，本文强调迫切需要采取主动政策应对，建议通过稳健的监管框架和以进步性社会与经济政策为特征的新社会契约来降低这些风险。该路径旨在确保可持续、包容且富有韧性的经济未来，在此过程中，人类对经济的贡献得以保留，并与生成式AI相融合，以增强各国的精神财富。