Study Shows AI Hitting Paychecks, Not Payrolls

Summary

Apollo Chief Economist Torsten Slok discusses a study finding AI's early labor-market impact shows up more in weaker wage growth for AI-exposed occupations than in job losses, while AI is also fueling record U.S. business formation. He expects S&P 493 margins to improve and AI adopters to be future winners. Former IBM HR chief Diane Gherson explains how companies are automating high-attrition roles, repricing gig and contractor wages, and managing AI workforce transitions.

• Slok's study of 300 occupations finds high AI exposure is linked to weaker wage growth, not significant employment losses.
• U.S. business formation is at its highest level ever, supporting a more dynamic AI-driven economy.
• Slok expects S&P 493 margins to improve over the next several quarters and sees AI adopters as the next winners.
• He is very optimistic on AI's potential to raise productivity and employment in the U.S. and globally.
• Gherson says high-attrition roles such as customer service are being automated first and filled at lower rates.
• Contractor and gig spot wages are being repriced lower using data, while employee pay is generally not being cut.
• Gherson highlights Walmart's employee-empowered AI rollout and radiologists' wage gains as examples of positive AI adoption.