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There continues to be a wide range of opinions on what the impact of artificial intelligence (AI) will be on the labor market. For AI enthusiasts, there is an expectation that AI will create millions of new jobs, while dramatically increasing productivity for many existing professions. On the other hand, AI doomsayers are worried that this technology will wipe out entire segments of the labor market, leaving millions of workers redundant.
So far, the evidence is mixed. Nevertheless, all people must be aware of the potential impact of artificial intelligence on their careers and their financial well-being, as there is little doubt that AI is both here to stay and will be one of the most transformative technological changes in human history. As such, huge numbers of people in the United States and around the world face an uncertain professional future.
Initial signs already point to the fact that major changes are underway in the labor market. On the positive side, demand for workers in the construction and utilities sectors has soared due to massive investments in AI infrastructure that require vast amounts of energy to power them. Many financial professionals have also indirectly benefited from the growth of the AI sector thanks to soaring share prices for firms involved in this sector, at least until the emergence of China’s DeepSeek last month.
On the negative side, AI has begun to dramatically change hiring and employment patterns in many industries. For example, hiring levels for many white collar and software positions have fallen dramatically due to expectations that AI will significantly reduce the need for humans working in those sectors. Likewise, many organizations are now holding off on hiring new people with the expectation that AI and the emergence of AI agents will eliminate the need for large-scale human intervention in many types of jobs.
Larger changes in the labor market are sure to come, for history shows us that major changes in employment patterns typically occur during times of economic crisis. This is due organizations taking advantage of these crises to streamline and consolidate their workforces under the cover of a crisis. I suspect this will also be true for the adoption of AI. Once the next economic slowdown begins, watch for organizations to dramatically adapt AI and AI agents, eliminating many segments of their workforces in the process.
In one form or another, most organizations and individuals will be impacted by the spread of AI.
Businesses will increasingly use AI agents to automate many jobs, eliminating millions of positions in the United States in the process. As a result, the head counts at many firms will be dramatically reduced, as will labor expenditures, thus boosting the productivity and profitability of these businesses. In fact, many positions that currently employ large shares of our country’s workforce will be all-but-eliminated in the coming years. Particularly vulnerable positions include many back-office jobs as well as jobs typically filled by young workers in financial and legal firms.
The economic impact of the spread of artificial intelligence has already begun to be felt on the U.S. economy. The United States’ strong presence in the AI sector has been a contributing factor to the relatively strong performance of the U.S. economy in recent years, particularly when compared to the poor performance of most of the world’s other developed economies.
Most important, AI has the potential to raise productivity, which had been declining in the United States and most other major economies for decades. Should AI succeed in increasing productivity over the longer term, it could become the most important driver of economic growth in the decades ahead.
Artificial intelligence could also have a major societal impact. For example, the perceived importance of education could be devalued, as access to information will be ubiquitous and accessible to everyone.
Unfortunately, without improved education, too many people will be vulnerable to the spread of misinformation or manipulated information. Social media have already made this a reality, and the spread of AI could take this to a much more dangerous level.
Finally, the biggest societal change could come from the fact that, as AI improves, and eventually becomes sentient, humans may no longer be making all of the crucial decisions in the future, something society is totally unprepared for.
Michael Weidokal is a global economist, futurist and the founder of International Strategic Analysis (ISA).
Individuals need to prepare for the continued spread of AI and to “AI-proof” their careers and their financial futures. One way to do this is to master the use of AI themselves. Another is to ensure that they are following a career path that will not come to an AI-induced roadblock in the future.
For older workers, this is a major challenge, as they need to find a way to remain relevant in a rapidly changing job market. For younger workers, the key is to master the use of AI early on and then chart a career path based on the expected spread of this technology. Simply put, to underestimate the importance of artificial intelligence on one’s career and financial future is to invite disaster.
Michael Weidokal, a lecturer at Baldwin Wallace University, is an internationally recognized economic and political forecaster. As the founder of International Strategic Analysis (ISA), he advises businesses and governments around the world on economic, geopolitical and other trends. His latest book, “The Coming Decline: A World Without Economic Growth,” was published last year.
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