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Gen AI Is Not Replacing Jobs Or Hurting Wages At All, Say Economists


An anonymous reader quotes a report from The Register: Instead of depressing wages or taking jobs, generative AI chatbots like ChatGPT, Claude, and Gemini have had almost no wage or labor impact so far -- a finding that calls into question the huge capital expenditures required to create and run AI ...

In a working paper released earlier this month, economists Anders Humlum and Emilie Vestergaard looked at the labor market impact of AI chatbots on 11 occupations, covering 25,000 workers and 7,000 workplaces in Denmark in 2023 and 2024. Early this year, OpenAI admitted that it loses money per query even on its most expensive enterprise SKU, while companies like Microsoft and Amazon are starting to pull back on their AI infrastructure spending in light of low business adoption past a few pilots. "In terms of economic outcomes, when we're looking at hard metrics -- in the administrative labor market data on earnings, wages -- these tools have really not made a difference so far," said Humlum.

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