"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."
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.
Read at Business Insider
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