Preparing the American Workforce for the AI Revolution

It’s no secret that artificial intelligence (AI) has seen exponential growth. While investors are pouring resources into AI, its rapid development has caught the nation off guard. The nation is not only unprepared but seems to lack concern for the broader costs, including environmental impacts from the electricity required to power these systems.

We celebrate the advancements AI brings, especially in medical sciences. However, the primary public focus remains on safety and regulation. Safety concerns reflect fears of being outsmarted, leading to a need for controls and regulations. Companies resist government intervention, and countries take risks for the financial returns AI promises. Consequently, there is no realistic planning at any level of government to mitigate risks or steer AI developments to maximize benefits.

Change is Hard, Rapid Change is Harder

Preparing society for significant change without knowing what it will be is daunting. We have been here before. At the turn of the century, America was ill-prepared for the loss of labor-intensive manufacturing industries, which hit communities hard. If a bounce-back was anticipated through new industries, it didn’t come. Generations passed before recoveries—requiring highly educated workers, often with college degrees—began.

The cost to communities included high unemployment, high rates of addiction, and premature death. Labor markets adjust over generations, not overnight. What do people do for work, purpose, and meaning when displaced? For many, work is central to life, providing stability, security, and dignity. When that is lost, society suffers.

Artificial Intelligence and the Workforce

The astronomical investment in AI, estimated at trillions of dollars, poses questions about what investments are not being made and the specific impacts of rapidly advancing technology. Despite the limits of prediction, policymakers need to think seriously about who will be left behind. How can we engage and benefit the public when AI is largely private?

Certainly, some of this huge investment should be directed to maintaining the legitimacy of an economic system where workers create value and are rewarded. They should hold bargaining power in labor markets and not be subjugated to market vagaries and capitalist prerogatives.

AI and Challenges to Society

Israeli philosopher Yuval Noah Harari warns that wealthy elites will upgrade themselves through technology, leaving the masses behind. Robert W. McChesney and Daron Acemoglu share similar concerns about AI wiping out jobs and eroding the value of human experience. If AI is to maintain political legitimacy, high levels of taxation may be necessary. Geoffrey Hinton suggests a form of socialism, while Elon Musk advocates for a universal basic income (UBI) to compensate for job losses. However, the funding for such programs remains unclear.

Serious policy and program discussions related to AI’s impact are scarce. Tech executives whisper about job impacts in hallways, while Congress and other institutions remain largely silent. A.I. schemes focused on profit by eliminating jobs present a significant challenge. Fewer jobs without plans for the displaced could lead to disaster.

Tech start-ups need fewer workers. For example, Gamma has hired only 28 people and uses AI to do what 200 would otherwise do. Starbucks, relying on AI, is cutting jobs. White-collar workers are also experiencing layoffs, with a steeper rise in unemployment for college graduates. If there is less need for employees with college degrees, it is partly due to AI’s automation capabilities.

Developing Alternatives for Displaced Workers

The nation is not known for its capacity to plan for the fallout from change. It doesn’t take much imagination to project where the U.S. will be as AI grows without concomitant job growth. We need innovative thinking now. Data shows that 70% of the skills an average job will require will change by 2030, and nine million jobs are expected to be displaced. However, AI will also create new jobs, with some 11 million new roles by 2030.

If the arrival of AI is a new industrial revolution, we need a coherent reindustrialization strategy. The G.I. Bill of Rights, which transformed America post-war, offers a model. It helped transition millions of veterans into civilian life by providing education, training, and housing assistance. A similar approach could help displaced workers in the AI era.

Adapting the G.I. Bill for the AI Era

The G.I. Bill successfully transformed America after World War II by providing veterans with education, training, and housing assistance. Given the potential for widespread displacement in the AI era, it’s worth considering a similar strategy. The bill included all veterans without regard to class or race, offering support for education, technical training, and low-interest loans. This approach could help transition displaced workers into new roles and industries, ensuring they remain relevant in a rapidly changing job market.