AI initially raises worker productivity by enabling faster and greater output, which tends to increase wages before automation replaces tasks. Automation of cognitive or “intelligence” tasks has already progressed—an estimated 14% of such tasks have been automated based on long-term declines in routine cognitive job shares. A modeled inflection point appears near 37% automation of cognitive tasks, beyond which wage growth could reverse and decline. Early indicators of approaching that peak include slowing wage growth and a labor shift away from intelligence‑heavy occupations toward more physical roles. Exact timing depends on model parameters and continued automation pace.
"Early on, AI can make workers more productive - helping them do more, faster - which tends to lift wages before automation starts to replace some of those jobs."
"We are over 14% automation, this is closer to a potential decline in wages than no automation."
"Her Brookings model suggests that as soon as roughly 37% of cognitive or "intelligence" tasks are automated, wage growth could start to reverse."
Read at Business Insider
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