The Economics of Recursive Self-Improvement [pdf]
elasticity.institute
The Economics of Recursive Self-Improvement [pdf]
1–10 of 103 posts
Re: The Economics of Recursive Self-Improvement [pdf]
#2We find that the condition is met if a one-unit increase in AI model capabilities results in at least 15% higher AI R&D pro ductivity.
A rough back-of-the-envelope calculation based on reported AI engineer uplift suggests this return has been around 9% since the launch of coding agents.
This number is below the model-implied threshold, suggesting we are not experiencing a self-sustaining acceleration."
And the source of this data seems to be self-reported productivity gains from surveys: 1.4–2X in METR’s survey of technical workers (Becker, 2026).
A bit flimsy basis but an interesting paper nonetheless.
Re: The Economics of Recursive Self-Improvement [pdf]
#3Re: The Economics of Recursive Self-Improvement [pdf]
#4Imagine having a secretary who could read 1 million records and give you back your answer in 100 microseconds, for just 10 cents an hour. That's Postgres.
So I'd imagine that if R&D can be automated, everything becomes better and cheaper but we'd all lose our jobs, as secretaries did to postgres. UBI season
Re: The Economics of Recursive Self-Improvement [pdf]
#5Re: The Economics of Recursive Self-Improvement [pdf]
#6RSI isn't anything new though; computers have been used to make computers better for about 80 years now. Imagine having a secretary who could read 1 million records and give you back your answer in 100 microseconds, for just 10 cents an hour. That's Postgres. So I'd imagine that if R&D can be automated, everything becomes better and cheaper but we'd all lose our jobs, as secretaries did to postgres. UBI season
Well, that secretary can only answer very specific questions in a rather peculiar format.
> [...] but we'd all lose our jobs, as secretaries did to postgres.
I doubt many secretaries were replaced by postgres.
However, you might like reading about https://en.wikipedia.org/wiki/Unit_record_equipment
Re: The Economics of Recursive Self-Improvement [pdf]
#7Re: The Economics of Recursive Self-Improvement [pdf]
#8It's important to recognize that LLMs accelerating development of LLMs does not imply it will lead to self-sustaining acceleration.
Re: The Economics of Recursive Self-Improvement [pdf]
#9 > But our models make it clear that such an [intelligence] explosion may not follow if there are diminishing returns (“ideas become harder to find”) or if feedback loops become bottlenecked.
How is this not obvious to everyone? As we advance it becomes more difficult to advance. You obviously make most advancements around the things that are easiest to improve. Then all the easy things are done. So you go onto the next easiest things. They're "the easy things" from that standpoint but that doesn't mean they aren't harder than "the easy things" when you started. Complexity increases as precision increases.Re: The Economics of Recursive Self-Improvement [pdf]
#10> But our models make it clear that such an [intelligence] explosion may not follow if there are diminishing returns (“ideas become harder to find”) or if feedback loops become bottlenecked. How is this not obvious to everyone? As we advance it becomes more difficult to advance. You obviously make most advancements around the things that are easiest to improve. Then all the easy things are done. So you go onto the ne…
Because everyone's thinking around intelligence is incredibly muddled by a variety of factors, and no one is particularly motivated to actually correct anyone's mistaken notions on the matter.