Recently, the Massachusetts Institute of Technology (MIT) released a significant study indicating that artificial intelligence (AI) has replaced 11.7% of the U.S. workforce. This number is equivalent to a total wage scale of $1.2 trillion across the finance, healthcare, and professional services sectors. The study used a labor simulation tool called the "Iceberg Index," developed jointly by MIT and Oak Ridge National Laboratory, which aims to simulate interactions among 151 million workers across the United States and how they are affected by AI and related policies.

Robot typing

Image source note: The image was generated by AI, and the image licensing service is Midjourney

The lead researcher of the study, Prasanna Balaprakash, stated that the Iceberg Index created a digital twin system for the U.S. labor market. This system revealed through experiments how AI reshapes tasks, skills, and labor mobility. Specifically, the study analyzed the relationship between 32,000 skills and 923 occupations, assessing the skills that current AI systems can perform.

Although the technology industry has received much attention, the study found that the fields truly affected by AI are more extensive, especially in daily functions such as human resources, logistics, finance, and office administration. The total wages in these fields amount to approximately $1.2 trillion, making up a large portion of the entire labor market, often overlooked by traditional automation predictions.

The research team collaborated with state governments to conduct forward-looking simulations using this model. States such as Tennessee, North Carolina, and Utah have already started applying this tool to verify its data and develop corresponding policies. Tennessee referenced the Iceberg Index in its official AI workforce action plan, and Utah also plans to release a related report.

The study also challenges the common assumption that AI risks are concentrated in coastal tech centers, pointing out that jobs affected by AI are spread across all 50 states in the U.S., especially in inland and rural areas. To address this challenge, the research team established an interactive simulation environment, allowing states to explore the impact of different policies on local employment and the economy. This provides decision-makers with a way to test different scenarios before investing funds.

In summary, this study reveals the profound impact of artificial intelligence on the U.S. labor market and provides valuable data support for policymakers to address upcoming changes.

Key points:

🌐 AI has already replaced 11.7% of the U.S. workforce, equivalent to a wage scale of $1.2 trillion.  

📊 The study used the "Iceberg Index" to simulate the labor market and reveal how AI reshapes tasks and skills.  

🏛️ State governments have begun applying the research findings to develop policies to address the impact of AI.