Source URL: https://news.slashdot.org/story/25/04/29/2341207/gen-ai-is-not-replacing-jobs-or-hurting-wages-at-all-say-economists?utm_source=rss1.0mainlinkanon&utm_medium=feed
Source: Slashdot
Title: Gen AI Is Not Replacing Jobs Or Hurting Wages At All, Say Economists
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Summary: The report highlights a working paper examining the minimal impact of generative AI chatbots on traditional labor markets and wages. Despite rapid adoption across various occupations, the economic benefits have yet to materialize, raising questions about the viability of massive investments in AI infrastructure.
Detailed Description:
The text discusses a report focused on the economic impact of generative AI chatbots, specifically analyzing their effects on wages and job markets. This is critical for professionals in AI, cloud computing, and infrastructure security considering the implications of AI adoption on workforce dynamics and investments in technology.
– Economists Anders Humlum and Emilie Vestergaard conducted a study on the labor market effects of AI chatbots in 11 occupations, involving a substantial dataset of 25,000 workers and 7,000 workplaces in Denmark.
– The findings revealed that these chatbots have had “no significant impact on earnings or recorded hours” across the analyzed occupations, which include vulnerable fields such as accounting, customer support, IT, journalism, and software development.
– Despite the swift and widespread adoption of AI chatbots by workers and encouragement from employers, the anticipated economic benefits are lacking, challenging the narrative of AI’s transformative potential.
– The report raises concerns regarding substantial investments made by tech firms in AI infrastructure against a backdrop of low business adoption and unclear returns on these investments.
– Humlum’s insights suggest that while AI may save time on tasks like email writing, there is insufficient evidence to indicate that these time savings translate into increased earnings or output for workers.
– The conclusion posits that the economic viability of generative AI tools, as of two years post-introduction, remains in doubt, necessitating a careful review of their projected transformative impacts.
This analysis underscores the importance for security and compliance professionals to understand AI’s real-world performance, prepare for potential labor market disruptions, and evaluate the financial implications of technology investments in the AI realm.