AI Could Wipe Out $1.2 Trillion in U.S. Wages, and It is Already Happening

United States, thekabarnews.com – AI is about to change the U.S. job market in a big way. There is a possibility that AI could wipe out $1.2 trillion in wages across several industries. 

The Massachusetts Institute of Technology (MIT) did a revolutionary study. It shows AI is already doing labor for about 11.7% of the U.S. workforce. This will have a big effect on fields including banking, healthcare, logistics, and human resources.

The analysis uses the Iceberg Index, a full labor simulation tool made by MIT and Oak Ridge National Laboratory. This approach carefully maps out more than 32,000 different abilities across 151 million U.S. workers. 

This helps researchers figure out which activities AI systems can realistically do. It is crucial to remember, though, that while big tech layoffs may receive a lot of attention, they are only a small part of the bigger and less obvious effects of AI-driven disruption.

The Iceberg Index is a skills-based map that shows where AI-driven disruption is most likely to happen. It goes right down to the ZIP code level. 

Tennessee, North Carolina, and Utah are just a few of the states that are already using this information. They manage their workforces and come up with ways to retrain workers before making big public investments.

These results go against the idea that AI risk is only a problem in tech hubs near the coast. The analysis reveals that AI has the potential to disrupt all 50 states, including the predominantly rural ones. 

Policymakers recognize the importance of the Iceberg Index in preparing workers and local economies for significant changes. Policymakers are now focusing on adaptation and proactive steps to lessen the effects of AI, not just alarm.

Conclusion

AI could cost the U.S. job market $1.2 trillion in wages across sectors. MIT discovered that AI is already assisting 11.7% of the workforce. It impacts sectors such as banking, healthcare, logistics, and human resources. 

The study uses the Iceberg Index, a labor simulation tool, to map over 32,000 skills across 151 million workers. It determines AI job disruptions at the ZIP code level. Tennessee, North Carolina, and Utah use this data for labor strategies. 

The findings refute the notion that AI threats are exclusive to coastal tech clusters. They demonstrate that disruption is a concern for all states, including rural ones. Instead of responding to urgent dangers, policymakers are prioritizing adaptive AI mitigation strategies.