https://medium.com/@sanguit/ai-wont-eat-your-job-but-it-will-eat-your-salary-a810121d89e4
intelligence (AI) is likely to impact job salaries rather than eliminating jobs entirely. The primary argument is that AI will erode the skill premium traditionally commanded by high-skilled workers. This erosion happens through three key mechanisms:
- Skill Premium on Specialized Tasks: AI enables low-skilled workers to perform tasks at a level comparable to high-skilled workers, making skilled workers more substitutable and reducing their wage premium.
- Skill Premium on Learning Advantages: AI’s ability to continuously learn and improve from vast amounts of data threatens professions that rely on continuous learning and skill development. For example, in healthcare, AI can absorb and replicate the learning and expertise of doctors, diminishing their unique value.
- Skill Premium on Managerial Advantages: AI agents can take over managerial tasks like planning and resource allocation, which have traditionally required human intervention. As AI becomes more sophisticated, even complex managerial roles might lose their premium as AI performs these functions more efficiently.
These factors collectively lead to a commoditization of skills, reducing the relative advantage and salary premium of traditionally high-skilled and managerial roles. The article emphasizes that while AI may not replace jobs outright, it will significantly affect how jobs are valued and compensated.