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AI can already replace 11.7% of the U.S. workforce, MIT study finds

CNBC Television2:52

Transcription

WELCOME BACK. RESEARCHERS AT MIT JUST OUT WITH A NEW STUDY ABOUT AI AND PRODUCTIVITY AND JUST HOW MANY JOBS COULD BE AT RISK. MACKENZIE SIGALOS JOINS US WITH THAT STORY.

MARKET PAYS ATTENTION TO THESE MIT STUDIES ON AI.

YEAH, THAT LAST ONE ON 95% OF ENTERPRISE. YOU KNOW, ADOPTION OF AI NOT WORKING OUT NOW. MIT HAS BUILT AGENT CLONES OF 151 MILLION WORKING AMERICANS, ESSENTIALLY SOFTWARE COUNTERPARTS, TO REAL PEOPLE IN ORDER TO IDENTIFY WHICH JOBS ARE MOST AT RISK YEARS BEFORE LAYOFFS HIT. NOW, IT'S CALLED THE ICEBERG INDEX, AND IT USES THESE AGENTS TO MAP MORE THAN 32,000 SKILLS ACROSS 923 OCCUPATIONS IN 3000 COUNTIES, REVEALING EXPOSURE TO AI DISPLACEMENT IN EVERY STATE, NOT JUST COASTAL CITIES.

THE REPORT SHOWS THAT WHILE ONLY 2% OF AI DRIVEN WAGE DISRUPTION IS VISIBLE IN TECH HUBS TODAY, THERE'S ACTUALLY A HIDDEN LAYER OF EXPOSURE THAT IS FIVE TIMES LARGER THAN WHAT WE SEE TODAY, CUTTING ACROSS INDUSTRIES AND GEOGRAPHIES, HENCE WHY THEY CALL IT THE ICEBERG INDEX. NOW, FINDINGS INDICATE THAT AI CAN ALREADY TAKE OVER TASKS TIED TO NEARLY 12% OF THE US LABOR MARKET. THAT'S ABOUT $1.2 TRILLION IN WAGES, ESPECIALLY IN CAREERS TIED TO HEALTH CARE, FINANCE AND PROFESSIONAL SERVICES.

FOR LAWMAKERS PREPARING BILLION DOLLAR RESKILLING AND TRAINING INVESTMENTS, THE INDEX OFFERS A DETAILED MAP OF WHERE DISRUPTION IS FORMING DOWN TO THE ZIP CODE AND, CRUCIALLY, A WAY TO RUN WHAT IF SCENARIOS BEFORE THEY COMMIT REAL MONEY AND LEGISLATION. YOU'VE GOT STATES LIKE TENNESSEE, UTAH AND NORTH CAROLINA ALSO COAUTHORS ON THIS NEW REPORT THAT ARE ALREADY USING ICEBERG TO TEST EVERYTHING FROM NEW TRAINING PROGRAMS TO SKILLS FIRST HIRING RULES BEFORE THEY FORMALLY COMMIT TO POLICIES AND SPENDING GUYS.

I'M AMAZED AT THIS STORY, MACKENZIE. AND THIS MONEY QUOTE THAT YOU USE, WHERE THEY ARGUE THAT WE'RE BASICALLY CREATING A DIGITAL TWIN FOR THE U.S. LABOR FORCE.

BUT THE RESEARCHERS DO STRESS THAT THIS ISN'T A COUNTDOWN CLOCK TO LAYOFFS. IT'S MORE OF AN EARLY WARNING MAP SO THAT POLICYMAKERS CAN MOVE MONEY AND TRAINING AROUND BEFORE THE SHOCK HITS. AND SO THE COOLEST COMPONENT OF THIS REPORT IS THE FACT THAT THE ICEBERG TEAM HAS BUILT AN INTERACTIVE SIMULATION ENVIRONMENT THAT ALLOWS STATES TO ACTUALLY EXPERIMENT WITH DIFFERENT POLICY LEVERS, FROM SHIFTING WORKFORCE DOLLARS AND TWEAKING TRAINING PROGRAMS TO ACTUALLY EXPLORING HOW CHANGES IN TECH ADOPTION MIGHT ACTUALLY AFFECT LOCAL EMPLOYMENT AND GDP. TENNESSEE HAS BEEN THE FURTHEST ALONG WITH THIS. THEY'VE ACTUALLY BUILT THEIR OWN AI AND WORK DASHBOARD THAT TRACKS OCCUPATIONAL EXPOSURE AND WAGE EFFECTS ACROSS THE STATE, AND THAT'S HELPING CURRENTLY TO GUIDE ITS POLICY AND SPENDING DECISIONS.

ALL RIGHT. WELL, LET