The use of artificial intelligence (AI) may alter the way of life for white-collar workers, reversing the trend of tech-driven inequality that has been experienced since the 1980s. OpenAI, the company that created ChatGPT, released a report in March that predicted the effects of their newest AI technology on the white-collar workforce, which could potentially reduce inequality.
Automation has become the primary cause of income inequality in the United States, with MIT economist Daron Acemoglu estimating a 50-70% increase in inequality since the early 80s. Automated robots and computer software have been a convenient replacement for tasks once done by middle-income workers, resulting in decreasing wages or stagnation. Moreover, the gap between those without a college degree and those with a college degree has also grown exponentially.
Now, with AI taking the reins of more demanding tasks, it appears that white-collar workers, who have substantially benefited from the inequality brought about by automation, may have to face their biggest challenge yet. According to OpenAI, their AI model will influence up to 80% of the workforce’s tasks and 50% of tasks for 19% of the workforce. Those with higher education and qualifications, such as those with with bachelor’s, master’s, and professional degrees are more likely to be impacted. The effects AI will bring are uncertain and may be either beneficial or disadvantageous, as AI may either cheapen educated labor or make workers even more productive, respectively.
According to MIT economist David Autor, AI is “powerful and opaque” and can do more than just following scripted instructions. AI, if able to reach its full potential, could actually be an “equalizing force”, as it would replace highly skilled white-collar workers and it would reduce the demand for their highly paid services, as stated by Acemoglu. Even if AI is not yet as advanced as to replace workers, it could still increase the productivity and quality of middle-skill work, thereby increasing middle incomes.
It’s clear that embracing the potential of AI may lead to more opportunities for the working class, however, to really make a difference in reducing inequality, additional steps should be taken. This includes ensuring that incentives are aligned with social objectives and that governments and corporations promote the potential AI has to empower and benefit humanity and not simply be used competitively.
OpenAI is a San Francisco-based research laboratory with a mission to ensure that artificial general intelligence benefits all of humanity. David Autor is an MIT economist whose research focuses on the labor market impacts of technological change, and Daron Acemoglu is an MIT economist who specializes in the causes and consequences of technological innovation and economic growth.
