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yesterday

AI Boosts Productivity and Wages Even as Experts Warn of White-Collar Displacement

Businesses are boosting AI training budgets to help employees bridge skills gaps in response to the technology-driven transition.

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An attendee walks by a wall with a logo during an Artificial Intelligence Action Summit at the Grand Palais in Paris, Monday, Feb. 10, 2025. (AP Photo/Michel Euler)
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Palantir CEO Alex Karp at the Hill and Valley Forum in the U.S. Capitol on April 30.

Overview

  • PwC’s 2025 Global AI Jobs Barometer found that industries most exposed to AI have seen productivity nearly quadruple since 2022, with wages rising twice as fast and AI-skilled workers commanding a 56% premium.
  • Anthropic CEO Dario Amodei and Klarna’s Sebastian Siemiatkowski warn that AI could eliminate half of entry-level white-collar roles within five years, risking unemployment spikes and even triggering a recession.
  • Demand for AI capabilities has driven UK tech vacancies to a pre-pandemic high and spurred a 200% year-on-year increase in AI-related job postings, while roles requiring manual labor and complex human interaction remain more secure.
  • Survey data indicates that nearly 60% of businesses are increasing investments in staff upskilling and plan to dedicate up to 20% of their tech budgets to AI training this year.
  • Workforce experts advise mastering AI tools alongside soft skills such as critical thinking and communication to stay competitive in a labor market transformed by automation.