AI job displacement

Researchers at Brookings have been looking deeper into the ability of the US population to adapt to the inevitable AI displacement. It is fascinating reading:

→ There are 37.1 million U.S. workers in the top quartile of occupational AI exposure
→ 26.5 million (71%) have above-median adaptive capacity*
→ 6.1 million workers (16% of the top quartile, 4.2% of the sample workforce) are likely to be impacted by high AI exposure and low adaptive capacity.
→ Clerical and administrative roles are the hardest hit
→ 86% are women (calculated using Lightcast data)
→ Concentrated in smaller metropolitan areas, university towns in the Mountain West and Mid West

* Adaptive Capacity: How well you are positioned to make a job transition if displacement occurs.

The factors that impact adaptive capacity aren't surprising, but are a stark reminder:

→ Liquid financials: Savings or a financial cushion
→ Age: Older workers are less likely to retrain, relocate, or switch occupations
→ Geography: Dense metropolitan areas have more opportunity
→ Skill transferability: Especially skills that can be applied across many fields

What helps adaptability?

AI Exposure.

As exposure increases, adaptive capacity generally increases as well.

Report: https://www.brookings.edu/articles/measuring-us-workers-capacity-to-adapt-to-ai-driven-job-displacement/
Research paper: https://www.nber.org/books-and-chapters/economics-transformative-ai/how-adaptable-are-american-workers-ai-induced-job-displacement