What if Automation-displacement backlash drives anti-AI labor regulation?
Rapid job displacement triggers political backlash and rules slowing AI deployment in sensitive sectors, raising compliance costs and capping the productivity dividend; the regulatory drag tempers AI-margin optimism.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (electric blue) over time vs the market's (Polymarket, amber), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. Loading the probability audit trail…
What it would mean
If this plays out, it is a risk-off shock. Rapid job displacement triggers political backlash and rules slowing AI deployment in sensitive sectors, raising compliance costs and capping the productivity dividend; the regulatory drag tempers AI-margin optimism. The trigger decomposes into signed root‑shocks — Job displacement ▲ · Risk appetite ▼ · Robotics productivity ▼ — which propagate through our causal graph to the markets below.