The emergence of generative artificial intelligence (AI) has raised concerns that increasing adoption of this new technology could lead to massive job loss and high levels of unemployment. In a new insight, Labor Policy Analyst Emmet Bowling examines AI’s current and potential future impact on the U.S. labor market.

Key points:

• Three well-known studies from Goldman Sachs, Massachusetts Institute of Technology, and The Budget Lab at Yale challenge the apocalyptic job loss narrative, indicating that while AI does have the potential to replace jobs, it can also create new jobs.
• Furthermore, AI’s impact on the labor market thus far has not displaced jobs in any marked way and roughly mirrors that of other periods of technological change, such as that of the internet and computers.
• To date, AI has not had a remarkable impact on employment outcomes; while some jobs may be eliminated, automation also can lead to the creation of new jobs, offsetting any losses.

Read the analysis.