- MIT report finds 11.7% of current US workforce could be replaced by AI
- That doesn’t mean they will be, but their skills can be replicated
- MIT study is a great tool for policymakers to target specific populations
A new study from MIT indicates that 11.7% of the US job market could currently be replaced by artificial intelligence, representing a loss of $1.2 trillion in wages in industries like finance and healthcare.
The study bases its figures on the Iceberg Index, a work simulation tool built jointly by MIT and Oak Ridge National Laboratory, which analyzes 151 million American workers, 923 different occupations and more than 32,000 skills.
MIT divides the effects of AI on the U.S. workforce into “visible” impacts, such as tech layoffs and role changes, and “hidden” impacts, such as changes in human resources, logistics, and administration.
AI-related business threats
Although “visible” job losses in the technology and IT sectors are largely concentrated in tech hubs, “hidden” layoffs are much more widespread geographically, spanning all 50 states, including rural areas, not just cities.
States like Delaware, South Dakota, North Carolina, and Utah have higher “hidden” exposure than California, which is home to a high concentration of tech companies.
MIT emphasized that the Iceberg Index is not a tool for predicting job losses, but rather a tool that helps visualize tasks that AI can already handle. But it has still proven useful in policymaking, with Tennessee citing Iceberg in its official AI Workforce Action Plan and Utah preparing a similar move.
North Carolina Sen. DeAndrea Salvador also praised the index for its county-level detail (it covers about 3,000 U.S. counties), which is useful for mapping economic impacts on a local scale.
MIT explains that the research can be useful to policymakers in identifying hotspots of exposure to prioritize training, skills development and infrastructure investments. These places may also make good testing sites before the United States commits to spending billions on workforce programs.
“The Iceberg Index provides measurable information for critical workforce decisions: where to invest in training, what skills to prioritize, how to balance infrastructure and human capital,” the researchers concluded.
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