Year: 2026
Type: report
Abstract: Artificial intelligence (AI) may transform labor markets not only by changing workers' tasks but also by reorganizing production. We study radiology, where AI has spread rapidly without increasing interpretations per radiologist. In our model, AI facilitates outsourcing by letting hospitals verify the quality of remotely supplied interpretations. Using US Medicare data for 2013-2024, we document declining local radiology activity in smaller markets despite stable imaging demand. Interpretations shift toward larger markets, and radiologists at documented AI-adopting platforms end up serving more markets. AI can thus reshape firm boundaries and the geographic organization of professional work without replacing workers' tasks.
Source: CESifo
DOI: 10.65864/xmoldbwwld
Authors: Marco Francesconi, Xiaoyu Xia
Institution: University of Essex
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7223960941