AI Isn’t Slashing Jobs or Wages (Yet)

Despite the whirlwind of hype, new research suggests that generative AI chatbots like ChatGPT and Claude have, so far, made barely a ripple in the labour market, leaving jobs and wages largely untouched.

A Grounded Reality Check

A comprehensive study by economists Anders Humlum (University of Chicago) and Emilie Vestergaard (University of Copenhagen) has found that the economic impact of generative AI chatbots on workers has been negligible. Their paper, Large Language Models, Small Labor Market Effects, analysed data from over 25,000 workers across 7,000 Danish workplaces between 2023 and 2024, focused on 11 occupations considered highly susceptible to AI disruption, including software developers, journalists, legal professionals, and teachers.