The AI boom could go one of 2 ways, and the path companies choose could make or break the US workforce
Additionally, while many S&P 500-sized corporations might be well positioned to reap the rewards of the AI boom, smaller companies — and their employees — might not see the same benefits, Carl Benedikt Frey, an Oxford University economist, told Insider.
"AI will make superstar companies more productive and profitable, but those profits might be achieved at the expense of other companies," he said."Think of Amazon, which has expanded enormously, using both AI and robots, while local retailers have paid the price." Even among workers at large companies that effectively incorporate AI, not every worker will see the benefit of these increased profits, Mark Muro, a senior fellow at the Brookings Institution who has researched AI's impact on the American workforce, told Insider.
"Workers' experiences may be more dependent on the nature of their firms' adoption of these technologies," he said."Are they adopted in a spirit of improving processes and creating more and better output? Or are they used crudely just to get rid of workers? That's a difference between 'good AI' and 'bad AI.'"
"Where the profits go will depend on how AI is used," he said."If AI is used to automate existing tasks, or simply to monitor the workforce, turning employees into robots dancing in tune, the gains will go to owners of capital. If, on the other hand, we use AI for innovation, to create new products or even industries, that will increase the demand for workers — prompting wages to rise," Frey added.
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