Will the AI revolution cause a great divergence?

•Emerging technologies (AI, “robots”) threaten to cause cross-county divergence.•Just assuming that robots substitute more for unskilled yields three mechanisms:•High-wage countries use robots more so gain more from higher robot productivity.•Relative wage of unskilled labor, and so price of poor-country exports, falls.•In transition, capital flows “uphill” given high return to robot capital.