A new study from the Massachusetts Institute of Technology has found that artificial intelligence could replace up to 11.7 percent of the United States labour market. This represents about 1.2 trillion dollars in wages across sectors including finance, healthcare, and professional services. The findings are based on a labour simulation tool called Iceberg Index, created by MIT and Oak Ridge National Laboratory.
The Iceberg Index acts as a digital twin for the United States labour market. “Basically, we are creating a digital twin for the US labour market,” said Prasanna Balaprakash, director at Oak Ridge National Laboratory and co leader of the research. The index runs experiments at a population level to show how artificial intelligence reshapes tasks, skills, and labour movement long before those changes appear in real economic situations.
The index treats one hundred and fifty one million workers as individual agents with defined skills, tasks, occupations, and locations. It maps more than thirty two thousand skills across nine hundred and twenty three occupations in three thousand counties. The researchers found that the visible impact of artificial intelligence on jobs through layoffs and role changes in technology sectors accounts for only 2.2 percent of wage exposure, or about two hundred and eleven billion dollars.
The full wage exposure from artificial intelligence, including routine work in human resources, logistics, finance, and office administration, totals 1.2 trillion dollars. This goes far beyond the visible changes happening in technology and information sectors. The Iceberg Index is not designed to predict job losses but instead gives a skill based picture of what current artificial intelligence systems are already capable of doing.
Several states are now using the index for policy planning. Tennessee, North Carolina, and Utah have tested its accuracy with their own labour data and are building policy plans based on its results. Tennessee has also cited the Iceberg Index in its official Artificial Intelligence Workforce Action Plan released this month.
The Iceberg Index challenges the idea that artificial intelligence risk will stay limited to technology roles in coastal regions. Its simulations show that exposed occupations exist in all fifty states, including inland and rural areas that are often not included in discussions on artificial intelligence. To support this, the team has created an interactive simulation platform that allows states to explore different policy choices and their possible effects on employment and local economic activity.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
