WASHINGTON (TNND) — Artificial intelligence is transforming the U.S. job market faster than many policymakers, economists and workers expected, raising new questions about whether the technology is eliminating jobs or simply fundamentally reshaping the way Americans work.
From the assembly line to the personal computer, innovation has repeatedly changed the nature of work. But some experts warn that artificial intelligence represents a disruption of unprecedented scale. (TNND)
From the assembly line to the personal computer, innovation has repeatedly changed the nature of work. But some experts warn that artificial intelligence represents a disruption of unprecedented scale.
Microsoft co-founder Bill Gates described AI as “an unprecedented disruptor,” saying nearly every industry is being caught off guard by the technology’s capability and precision, from healthcare and education to finance and professional services.
A Microsoft logo is displayed during an event titled “Microsoft Build: AI Day” in Jakarta, Indonesia, Tuesday, April 30, 2024. (AP Photo/Dita Alangkara)
A recent study from the Massachusetts Institute of Technology suggests the potential impact could be significant. Researchers have found that AI systems can already automate or replace tasks that account for nearly 12% of the U.S. job market, or up to $1.2 trillion in wages. The effects are expected to be more pronounced in white-collar fields, including finance, health care and professional services.
Labor market data is starting to show signs of strain in some high-skill occupations. Employment in several of the highest-paying positions, including management analysts and aerospace engineers, has fallen about 3.5% over the past five years. Jobs in finance, architecture and engineering declined by about 2 to 2.5 percent during the same period. The unemployment rate among college graduates has also increased slightly, with specializations exposed to AI such as computer engineering and architecture among those feeling the pressure.
Some economists attribute part of this slowdown to the increased use of artificial intelligence, while others caution against overestimating its impact. Martha Gimbel, executive director of Yale’s Budget Lab, says there is little evidence so far of widespread job losses caused by AI.
“That’s not to say that there isn’t anyone in the United States who isn’t affected by AI,” Gimbel said in an interview with Yahoo Finance. “But we really don’t find any macro effects of AI on the labor market.”
FILE – A Copilot page showing the incorporation of AI technology is shown in London, Tuesday, February 13, 2024. (AP Photo/Alastair Grant, File)
Some new data suggests a more optimistic outlook. A recent Vanguard analysis found employment and wage growth over the past two years in occupations with greater exposure to artificial intelligence, suggesting the technology could create new demand and boost productivity rather than outright replacing workers. A separate survey found that most institutional investors and business executives expect artificial intelligence to lead to increased hiring across the board in 2026, reflecting growing confidence that AI adoption will increase — not shrink — the workforce.
As the debate continues, lawmakers are scrambling to better track AI’s real-world effects. A bipartisan bill introduced earlier this month by Republican Sen. Josh Hawley and Democratic Sen. Mark Warner would require companies and federal agencies to report to the Department of Labor each quarter the number of workers laid off due to artificial intelligence.
Supporters say the measure would provide the first comprehensive nationwide picture of how AI is reshaping the U.S. workforce — data they say is critical as the technology continues to spread rapidly through the economy.