Generation-Verification Asymmetry Inversion and Apprenticeship Pipeline Collapse Under AI Substitution
For most of economic history, generation has been costly and verification cheap; tacit-capital institutions were optimized for that asymmetry. AI inverts the cost structure: generation becomes near-free while verification remains a Polanyi residual that is tacit and labor-intensive. We develop a tacit-capital production model with CES output in generation and verification, AI substitution at rate θ, and verification capacity acquired only through accumulated generation experience under h(τ)=τ^a.
