Professor warns that the AI pay increase may reach its highest point sooner than anticipated.
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
Updated: Nov 17 20250mins
AI's Impact on Wages: Ioana Marinescu, a Penn professor, suggests that AI may be nearing the peak of its wage-boosting effects, with wage growth potentially reversing once about 37% of cognitive tasks are automated.
Current Automation Levels: Research indicates that over 14% of intelligence tasks have already been automated, leading to a decline in routine cognitive jobs and a shift in employment from intelligence-heavy roles to physical jobs.
AI Pay Curve Dynamics: The AI pay curve illustrates that wages initially rise as AI enhances productivity but may flatten and eventually decline as machines take over more tasks, particularly in sectors where jobs are easily replaceable.
Monitoring Employment Shifts: The key metric to watch is the balance between physical and intelligence-sector jobs; a shift towards more physical roles could signal a decline in wages as AI continues to automate cognitive tasks.
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
