Recent research from MIT and Oak Ridge National Laboratory reveals that approximately 12% of U.S. jobs are currently at risk of being replaced by AI. This translates to roughly 1 in 9 workers whose roles could be fulfilled by software capable of performing tasks without breaks or benefits.
Major corporations are already pivoting towards AI-driven efficiencies: HP Inc. plans to cut up to 6,000 jobs by 2028, while UPS has eliminated 12,000 corporate roles this year due to automation. The trend indicates a structural shift where companies are replacing human labor with AI technologies to reduce costs and enhance productivity.
As AI continues to advance, the link between productivity and wages is under threat, raising concerns about a growing wealth gap, as profits generated from increased efficiency may not reach the workers remaining in the labor force. The economic implications of this shift could have lasting repercussions, especially if a recession accelerates the trend.
