AI's real threat to the job market isn't job loss, it's lower paychecks, new research says (www.businessinsider.com)

A recent white paper from Apollo Global Management reveals that AI’s impact on the job market is more about diminishing paychecks than job losses. Analyzing wage and employment data across 321 occupations in the U.S., the research found that roles with higher exposure to AI experienced an average decline of 6.7% in real wage growth since 2023, coinciding with the rise of generative AI tools like ChatGPT. Particularly vulnerable are the lowest earners; service workers faced a staggering 24.3% decrease in wage growth, while those in the bottom 25% of earners saw a 10.7% decline. The significance of this study lies in its implications for income inequality and labor market policy, as approximately 5.8 million workers are categorized as highly exposed to AI. While job losses may not be immediately detectable, the potential for reduced wages raises concerns about economic disparity in a rapidly evolving labor market. The findings hint at a shift in the skills required as AI integrates deeper into various jobs, suggesting that workers may need to adapt to survive financially. Historical data indicates that displaced workers from technology-impacted roles typically suffer real pay cuts upon re-entering the workforce, underlining the urgent need for policy responses to address these challenges.