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5 May 2025

Economists Underestimate AI’s Workforce Disruption

Chris MacKenzie

On Monday, Americans for Responsible Innovation (ARI) released a new report exploring the workforce impacts of artificial intelligence using a new framework for technological disruption. The report, titled The Technologist-Economist Disconnect: Assessing AI Labor Disruption, finds that economists are likely underestimating job losses from AI by failing to account for the flexibility of AI to take on and replace labor for newly created jobs. The analysis also offers an overview of the policy landscape for addressing AI labor disruption.

“Silicon Valley says they’re designing technology that can replace human labor, but many economists are still painting a rosy picture when it comes to America’s jobs outlook,” said ARI President Brad Carson. “This report is about exploring the disparity in those forecasts and offering policymakers a clearer picture of how AI might disrupt labor. The bottom line is we need to be preparing for a large-scale workforce transition that lawmakers have not yet come to terms with.”

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