The Massachusetts Institute of Technology and Oak Ridge National Laboratory’s new “Iceberg Index” reveals that approximately 12% of existing U.S. jobs could be replaced by AI technology right now, equating to one in nine workers. This shift underscores a significant risk involving the permanent devaluation of human labor, rather than just recessionary market impacts. Major companies like HP and UPS have already announced significant job cuts due to automation.
This transformation is highlighted by the disconnection between productivity and wages; as AI allows companies to enhance output without hiring additional staff, profits will increasingly benefit share prices rather than workers. As automation accelerates, workers are urged to transition from traditional labor roles to more capital-focused positions to safeguard their economic wellbeing.
In 2023, U.S. labor continues to face a critical moment, prompting a call for individuals to acquire skills that leverage AI technologies while also investing in companies poised to thrive in the new economy shaped by AI advancements.
