money & economicsanalysisLSE Business Review
More work than it looks: the new jobs coming from AI adoption
Every wave of technology brings fear of lost jobs, and the new work it creates is harder to picture. In 1982 a London branch of the Musicians' Union called for a ban on synthesisers; instead they gave rise to a whole era of electronic music and new jobs for producers and programmers. Economist David Autor and colleagues estimated that more than 60 per cent of US jobs in 2018 were in specialties that did not exist in 1940. For AI, new work is already visible in a middle layer of people who deploy and govern the technology inside organisations. A Federal Reserve survey found 81 per cent of workers using generative AI said it saved them time, and UK job adverts for AI skills carried a 23 per cent wage premium.
Losses are easy to name and gains are hard to imagine, a bias psychologists call loss aversion. That does not guarantee AI creates more jobs than it removes, since the change may be fast and the winners may not be the people who lose out. The practical question is how quickly workers can be routed into the new roles.
Electricity first lit factories so they could run after dark, and only later reshaped production through the assembly line. Economic historians often describe this lag between a technology's arrival and the redesign of work around it as the pattern for general-purpose technologies.
Ford's moving assembly line, introduced at Highland Park in 1913, cut the time to build a Model T chassis from over twelve hours to about an hour and a half.
LSE Business Review · CC BY 4.0
Illustrative photo · Stanford Institute for Human-Centered Artificial Intelligen…, CC BY-SA 4.0, via Wikimedia Commons
