Subj : Generative AI isn't bitin
To : All
From : Mike Powell
Date : Wed Apr 30 2025 09:04 am
Generative AI isn't biting into wages, replacing workers, and isn't saving
time, economists say
Date:
Tue, 29 Apr 2025 14:13:00 +0000
Description:
Generative AI isn't actually saving workers that much time, plus it could be
adding to some workloads.
FULL STORY
According to a new working paper from the University of Chicago's Becker
Friedman Institute for Economics, generative AI chatbots like ChatGPT,
Gemini, and Claude have had minimal to no impact on wages or employment so
far, despite initiation concerns and worker apprehension.
The findings come from a study of around 25,000 workers in Denmark across 11
AI-exposed occupations. The study found no significant changes in earnings or
hours worked after the implementation of these AI tools.
Anders Humlum and Emilie Vestergaard, the paper's authors, also noted no
noticeable economic outcomes, such as total employment and wage bills at the
firm level.
GenAI isn't actually affecting workers that much, study finds
The paper explores how companies can guide their workers, noting that
encouragement and training efforts can boost adoption. Firm-led investments
nearly doubled adoption rates from 47% to 83%, according to the research.
However, the average time savings reported by users was only 2.8% just over
an hour on the basis that an employee is working a 40-hour week. Furthermore,
only 8.4% of workers saw new jobs being created, such as teachers monitoring
AI-assisted cheating, workers editing AI outputs and crafting better prompts.
Contrary to the time-saving promises, Humlum and Vestergaard noted that these
additional responsibilities actually increased workloads in some cases,
meaning that time savings only translated into higher earnings 3-7% of the
time.
The researchers noted: "While AI chatbots are now widely used saving users
time and creating new job tasks, especially in workplaces that encourage
their use their overall impact on the labor market remains limited."
They also noted that "labor market rigidities appear to delay the economic
impact," demonstrating how a company's approach to artificial intelligence
can dictate its success.
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Link to news story:
https://www.techradar.com/pro/generative-ai-isnt-biting-into-wages-replacing-w
orkers-or-saving-time-economists-say
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