How much is AI actually affecting the workforce?

This NPR Planet Money Indicator podcast episode discusses the potential impact of artificial intelligence (AI) on the economy, drawing parallels to the Industrial Revolution. The hosts interview an economist who studied the effect of AI on the labor share of income in the financial sector, finding a potential 5% decrease similar to that seen during the Industrial Revolution. While this decrease might seem negative, the economist notes that overall profits are increasing, leading to higher wages for those with AI skills. The discussion also touches upon historical context from a historian, highlighting both the positive and negative long-term impacts of the Industrial Revolution and raising concerns about potential monopolies and unequal distribution of wealth resulting from AI adoption, mirroring issues from the past. The episode concludes by emphasizing the need for policymakers to address these challenges.