This paper examines the relationship between individuals' expectations of job replacement by generative AI (GenAI) and their macroeconomic outlooks and behaviors. Using online surveys combined with randomized experiments conducted in the U.S. and Japan, we derive the following findings about the effects of expecting greater job replacement due to GenAI. First, in both the U.S. and Japan, respondents revise their beliefs after receiving information about GenAI's job replacement ratios. Second, in Japan, such an expectation leads to an increase in inflation expectations driven by a rise in investment. Third, it increases respondents' willingness to use GenAI in workplaces in Japan. Fourth, in the U.S., expectations of greater job replacement amplify concerns about weaker short-term labor demand and reduced skill requirements, particularly among more educated respondents. In addition, these respondents anticipate lower investment, while less educated respondents expect higher investment.
Keywords: Generative Artificial intelligence; labor market; inflation; productivity
Views expressed in the paper are those of the authors and do not necessarily reflect those of the Bank of Japan or Institute for Monetary and Economic Studies.