Recent discussion of AI technology’s effects on labor markets has focused on unemployment. The rising unemployment rates in occupations with higher AI prevalence speak to the short-run effects of uncertainty in the face of new technology. But how might one envision the possible effects of improvements in AI technology in the long run? What does Econ 101 tell us? The aim of this blog post is to offer simple tools of economic analysis to help think through the likely consequences of AI adoption in the long run. The goal is not to predict the future, as this is a complicated question, but rather to clarify first-order economic forces at play. I use a simple model of comparative advantage to show the likely consequences of increased productivity from AI technology. In my analysis, AI is viewed as complementing skilled workers and making them incredibly productive across a broad range of economic activity.