AI can replace one in ten American workers. Are you at risk?
Artificial intelligence (AI) is already capable of replacing 11.7% of the United States (US) workforce, despite most people thinking they won’t be affected.
These jobs, spanning administrative, financial, and professional services, are worth approximately $1.2 trillion in wages, according to the Iceberg Index, developed by researchers at the Massachusetts Institute of Technology (MIT).
The index simulates the human-AI labor market, representing 151 million workers across 923 occupations, executing over 32,000 skills, and interacting with thousands of AI tools.
The study, published on the preprint server arXiv, suggests that layoffs in the computing and technology industries, representing 2.2% of total wage exposure, or approximately $211 billion, are just “the tip of the iceberg.”
After Amazon laid off 14,000 employees in October, the company’s CEO, Andy Jassy, stated that they were simply not a cultural fit, and AI wasn’t the primary factor. Earlier this year, however, Jassy warned that AI will shrink Amazon’s workforce, especially among white-collar employees.
In November, IBM announced plans to cut thousands of employees as the company pivots towards AI consulting and software.
However, some experts say that many companies may be using AI as a scapegoat for poor performance and shrinking profits.
Workers aren’t worried about AI
The MIT study findings come in stark contrast to the optimism among American workers.
A recent YouGov/Udemy survey suggests that while 72% of American adults worry about the broader economic effects of AI, only 47% are concerned about their own jobs.
Meanwhile, 43% of business leaders expect to replace junior roles or entry-level jobs with AI, either by cutting jobs or reducing recruitment for new starters.
Curious what others think about this story? Contribute your thoughts to the debate below.
Data on the impact of AI on jobs is highly conflicting, potentially contributing to workers’ optimism.
A recent study from Yale University concluded that the introduction of ChatGPT in 2022 didn’t cause major disruptions in the US occupational mix, a measure indicating the types of jobs that comprise a workforce.
While the information sector experienced the most significant changes, the trends within these industries began before the release of ChatGPT.
Unlock exclusive Cybernews content on YouTube
