AI may take away jobs – but it’s creating some, too

The impact of artificial intelligence on America’s economy has proven far more limited than doomsayers predicted. Some researchers now say the technology could help low-skilled workers more than it will hurt them. 

“People learn how to be productive with the technology,” says Daniel Keum, a management professor at Columbia University. “But again, the bad news hits first.”

Tech sector layoffs surged in 2023 as Amazon, Meta, Alphabet, and Microsoft poured billions of dollars into AI. In February, Swedish consumer finance firm Klarna announced that AI was now handling two-thirds of its online customer chats, doing the work of 700 full-time agents. The company still relies on human workers to handle complex or sensitive cases. 

Displaced workers may find new jobs, but those posts may now pay less. That’s happening now for a new class of well-educated workers.

Ultimately, AI may improve productivity of customer support workers and lead to better customer satisfaction and reduced worker turnover, says Erik Brynjolfsson, director of Stanford University’s Digital Economy Lab.

“The tools [of AI], when used correctly, will help rebuild the middle class and will help create more widely shared prosperity,” he says. 

The 2023 predictions were scary. Artificial intelligence would:

• Replace 300 million full-time jobs worldwide over time.
• Encroach on tasks of 2 in 5 workers.
• Drive a bigger wedge between rich people and poor people.

So far, the impact of AI on the U.S. economy has proven far more limited. Examples of massive layoffs are less frequent than some expected. Some researchers now say the technology could help low-skilled workers more than it will hurt them. 

New technology always brings change and some people will lose their jobs even as new opportunities appear. But if the process unfolds over decades rather than a few years, then many employees and employers have time to adjust.

“Disruption is something we’ve seen over and over,” says Daniel Keum, a management professor at Columbia University. “Over time, new industries emerge. People learn how to be productive with the technology. … But again, the bad news hits first.”