Short-Term Gain, Long-Term Fragility: AI Labor Substitution and the Erosion of Sustainable Capability

Examines how aggressive AI labor substitution generates short-term productivity gains while eroding the human capability stock organizations need long-term. Frames capability decay as a governance-relevant form of drift. Also available on SSRN (10.2139/ssrn.6577818).

Concepts

• Organizational Resilience
• Agentic AI
• drift

Keywords

• Labor Substitution
• Capability Decay
• Fragility
• Short vs Long Term

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