by Nahlah Abdur-Rahman
December 3, 2025
A recent MIT study indicates that AI is poised to supplant nearly 12% of the workforce.
A groundbreaking study delineates the potential trillion-dollar ramifications of artificial intelligence on employment wages in the United States.
Recent research from the Massachusetts Institute of Technology has amplified concerns among workers regarding their future amid the AI revolution.
The study substantiates that AI could obliterate approximately $2.1 trillion in wages across several pivotal sectors. This staggering figure, as reported by Afrotech, corresponds to about 11.7% of the U.S. workforce.
CNBC indicates that the study employed the Iceberg Index, a nuanced “skills-centered measure of workforce exposure to the AI economy,” to derive this figure.
This index, conceived by MIT in collaboration with the Oak Ridge National Laboratory, evaluates the economic implications of the escalating reliance on AI within labor markets.
While the index is unable to pinpoint when these wage losses will commence, it meticulously examined skill sets associated with nearly 1,000 occupations. Through this analysis, it identified roles and skill sets that AI is already equipped to usurp.
Notably, the findings elucidate that AI’s advancements primarily threaten entry-level positions, placing the professional trajectories of recent college graduates in peril.
“AI systems currently generate an astronomical billion lines of code daily, prompting enterprises to overhaul hiring pipelines and diminish the demand for novice programmers,” outlined the researchers, as noted by CBS News.
“These observable transitions within technology occupations signify a more extensive reconfiguration of work that transcends mere software development.”
The research further postulates that several key sectors, including healthcare, may encounter heightened automation. While administrative duties within healthcare are most vulnerable, this shift would enable human personnel to devote more time to patient care.
The finance sector is also a focal point for the application of available technology, enhancing efficiency by minimizing time spent on documentation.
Despite AI’s potential to significantly curtail the necessity for additional personnel in administrative roles, the study does not foresee it fully displacing the essential, interpersonal responsibilities handled by healthcare providers and financial experts.
“While financial analysts will not vanish, AI systems may excel in managing substantial portions of document processing and routine analytical tasks,” remarked the researchers.
“This evolution restructures job roles and redefines critical skill sets, without necessarily diminishing workforce numbers.”
This transitional phase is poised to impact Black and Brown workers disproportionately, who have already experienced significant ramifications from the integration of AI into various operations.
As highlighted by the Colaberry School of Data Science & Analytics, Black individuals have faced particular challenges due to AI replacement in the customer service sector, with predictions that the growing economic chasm may exacerbate the job market for these communities.
Some states have initiated research into strategies for seamlessly integrating AI into their sectors while safeguarding employment.
With an impending reduction in the workforce attributable to AI, Black individuals and other workers of color may find themselves positioned at the forefront of potential layoffs.
Source link: Blackenterprise.com.
