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AI AND THE US JOB MARKET

How Has the Rise of AI Impacted the US Job Market?

1.

How AI benefits and aids employment

2.

Dangers and potential job losses

Outline

3.

AI as a double-edged sword

4.

Conclusion

5.

Closing Question

Part I

AI as a Job Creator & Productivity Booster

Job Creation and Efficiency

- AI-driven industries, such as machine learning engineering and data analysis, are booming - Generative AI tools could enhance workplace efficiency by more than 40% - Algorithms can analyze medical images and assist healthcare providers in identifying and diagnosing diseases more accurately and quickly according to the NIH

Machine Learning = branch of AI that enables systems to learn from data and improve performance without explicit programming.

Generative AI = uses machine learning models trained on large data sets to create new content

Part II

The Dangers of AI: Job Displacement & Automation

McKinsey estimates 30% of jobs could be automated by 2030

Jobs most at risk: Manufacturing, customer service, and data entry where AI can perform tasks faster and cheaper than humans.

- Workers in traditional sectors struggle to adapt while automation-prone jobs are rapidly being replaced - AI-driven hiring software can introduce a hiring bias, eliminating candidates unfairly

AI Bias: occurs when machine learning algorithms produce prejudiced results, potentially leading to unfair outcomes and a lack of diversity for hires

Part III

AI as A Double-Edged Sword That Needs Regulation

Why AI is a Double-Edged Sword That Needs Improvements

AI Alignment and Misalignment: A Major Challenge

AI lacks human intuition and interprets instructions literally, leading to unintended consequences. Example: Translation issues → AI struggles to fully capture human meaning, leading to errors.

AI in recruitment with two objectives: - Maximize company profits. - Maintain a diverse workforce AI identifies one gender as more profitable and prioritizes hiring it, ignoring diversity. = AI misalignment can result in biased and unethical hiring decisions.

AI Alignment = aims to steer AI systems toward a person's or group's intended goals, preferences, or ethical principles.

Summary

Automation is a Growing Concern

The Future of AI Depends on How We Manage It

AI is Transforming Jobs, Not Just Replacing Them

Many routine jobs, especially in manufacturing and customer service, are being replaced by AI. This shift is creating job insecurity, requiring workers to adapt and reskill.

AI is creating new job opportunities in tech, healthcare, and business. It helps workers by automating repetitive tasks, allowing them to focus on more creative and complex work.

Regulations, ethical AI use, and worker training programs are essential to balancing AI’s benefits and risks. AI isn’t necessarily good or bad, it’s how we choose to integrate it that matters.

Closing Question

Do you think AI is ultimately more beneficial or more harmful to the job market? Should governments intervene?

Bibliography

!. "How Is Artificial Intelligence Impacting the Job Market?", Sunita Arnold, Linqto Blog, Feb 18, 2025 2. "The Impact of Artificial Intelligence on the Labor Market", Yueling Huang, IMF eLibrary, Sep 13, 2024 3. "Is AI Already Shaking Up the Labor Market?", Christy DeSmith, Harvard Gazette, Feb 14, 2025 4. "The Impact of AI on Job Roles, Workforce, and Employment", Robert Farrell, Innopharma Education, Sep 29, 2023 5. "Artificial Intelligence for Medical Diagnostics", Mugahed A Al-Antari, National Library of Medecine, Feb 12, 2024 6. "Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality", Fabrizio Dell'Acqua, Harvard Business School, Sep 22, 2023 7. "How Gen AI Is Already Impacting the Labor Market", Ozge Demirci, Harvard Business Review, Nov 11, 2024 8. "The state of AI: How organizations are rewiring to capture value", Alexander Sukharevsky, QuantumBlack (AI by McKinsey), March 12, 2025

Potential Solutions

Can AI Be Improved?

Human-in-the-loop AI → Human oversight in AI decisions. Multi-objective AI → Training AI to balance multiple goals fairly. Even with safeguards, AI can still favor one goal over another, leading to misalignment.

So, while AI offers both opportunities and risks, how can we ensure its impact on the job market is truly positive?