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Large Language Models, Small Labor Market Effects

3 weeks 1 day ago
The abstract of a study featured on NBER: We examine the labor market effects of AI chatbots using two large-scale adoption surveys (late 2023 and 2024) covering 11 exposed occupations (25,000 workers, 7,000 workplaces), linked to matched employer-employee data in Denmark. AI chatbots are now widespread -- most employers encourage their use, many deploy in-house models, and training initiatives are common. These firm-led investments boost adoption, narrow demographic gaps in take-up, enhance workplace utility, and create new job tasks. Yet, despite substantial investments, economic impacts remain minimal. Using difference-in-differences and employer policies as quasi-experimental variation, we estimate precise zeros: AI chatbots have had no significant impact on earnings or recorded hours in any occupation, with confidence intervals ruling out effects larger than 1%. Modest productivity gains (average time savings of 3%), combined with weak wage pass-through, help explain these limited labor market effects. Our findings challenge narratives of imminent labor market transformation due to Generative AI.

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An Experimental New Dating Site Matches Singles Based on Their Browser Histories

3 weeks 1 day ago
A dating site launched last week by Belgian artist Dries Depoorter matches potential partners based on their internet browsing histories rather than curated profiles or photos. Browser Dating requires users to download a Chrome or Firefox extension that exports and uploads their recent search data, creating matches based on shared online behaviors and interests rather than traditional dating app metrics. Less than 1,000 users have signed up since the platform's launch, paying a one-time fee of $10.3 for unlimited matches or using a free tier limited to five connections. Depoorter, known for digital art projects exploring surveillance and technology, says the concept emerged from a 2016 workshop where participants shared a year of search history data. The platform processes browsing data locally using Google's Firebase tools.

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Talen Energy and Amazon Sign Nuclear Power Deal To Fuel Data Centers

3 weeks 1 day ago
Amazon Web Services has signed a long-term deal with Talen Energy to receive up to 1,920 megawatts of carbon-free electricity from the Susquehanna nuclear plant through 2042 to support AWS's AI and cloud operations. The partnership also includes plans to explore new Small Modular Reactors and expand nuclear capacity amid rising U.S. energy demand. Utility Drive reports: Under the PPA, Talen's existing 300-MW co-location arrangement with AWS will shift to a "front of the meter" framework that doesn't require Federal Energy Regulatory Commission approval, according to Houston-based Talen. The company expects the transition will occur next spring after transmission upgrades are finished. FERC in November rejected an amended interconnection service agreement that would have facilitated expanded power sales to a co-located AWS data center at the Susquehanna plant. The agency is considering potential rules for co-located loads in PJM. Talen expects to earn about $18 billion in revenue over the life of the contract at its full quantity, according to an investor presentation. The contract, which runs through 2042, calls for delivering 840 MW to 1,200 MW in 2029 and 1,680 MW to 1,920 MW in 2032. Talen will act as the retail power supplier to AWS, and PPL Electric Utilities will be responsible for transmission and delivery, the company said. Amazon on Monday said it plans to spend about $20 billion building data centers in Pennsylvania. "We are making the largest private sector investment in state history -- $20 billion-- to bring 1,250 high-skilled jobs and economic benefits to the state, while also collaborating with Talen Energy to help power our infrastructure with carbon-free energy," Kevin Miller, AWS vice president of global data centers, said.

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