AI has driven much of the S&P 500’s (SPX) returns this year, but soon, it could be coming for your job. The Massachusetts Institute of Technology (MIT) released a study estimating that AI is already capable of replacing 11.7% of the U.S. workforce, equivalent to $1.2 trillion in annual wages. MIT used the Iceberg Index to reach the conclusion, which simulates the wage value of labor skills that AI systems can perform among 151 million workers with over 32,000 skillsets.
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“While consumer applications such as ChatGPT capture public attention – helping with homework, writing, or quick research – the larger restructuring is already underway inside firms,” said the study.
AI’s Impact Extends Far Beyond Tech Jobs
It isn’t just computing and technology jobs that AI can replace, which MIT estimates to be 2.2% of total wage exposure, or $211 billion. Other sectors, including finance, healthcare, and professional services, bring the total much higher.
The Iceberg Index acts as a gauge of the capabilities that AI can perform in today’s workforce in order to provide employers and policymakers with data to prepare for AI adoption. MIT has already shared its findings with several states as AI developments advance at a rapid pace.
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