Tacit Knowledge Limits AI Takeover

AI systems excel where massive digital training data exist, but they lack Polanyi (tacit, context‑specific) knowledge embedded in physical practice and social relations. That gap means many tasks—especially those requiring nuanced hands‑on judgment or motivating people—are harder to automate than headline 'AGI' claims suggest. Policy and regulation debates that assume broad job displacement overlook this structural limitation. — If tacit (Polanyi) knowledge is central to many occupations, then predictions about mass automation, labor policy, and AI regulation need to be recalibrated toward role‑specific risk and institutionally focused responses.