- AI companies claim their tools can replace human labor, leading to potential job automation and augmentation.
- Nobel prize-winning economists warn AI must be managed to avoid large-scale job displacement and ensure rising living standards.
- Large language models (LLMs) are increasingly capable of completing complex tasks that previously took humans hours, such as software development and financial analysis.
- Stanford University data shows a 2.7% employment hit for 22-25-year-olds since ChatGPT's widespread use, rising to 12.8% in AI-exposed sectors like finance and software.
- Online job postings in highly exposed sectors (e.g., telemarketing, legal services) have declined in the UK, while less exposed sectors (e.g., construction, cleaning) remain stable.
- AI token usage has surged in 2026, but high costs have led companies to ration AI use, suggesting limits to automation efficiency.
- Some companies are shifting to cheaper AI models from China, adding uncertainty to future labor market impacts.