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LLM applications and Agentic AI: Workflow Savior or Job Killer?

Productivity gains from generative AI are real but narrowly concentrated — novice workers gain significantly while experts gain little — and firm-level adoption remains limited, meaning the transformation is still early and will unfold over years, not months. The central unresolved tension is whether this cycle will follow historical precedent (net job creation, eventual broad prosperity) or break from it, as pessimists like Acemoglu warn that automation may outpace new task creation while optimists project 78 million net new jobs by 2030 — a disagreement driven by different assumptions, not different data. Most invisibly, displacement is already occurring at the hiring stage for young workers rather than through layoffs, AI is automating non-routine abstract tasks (not just routine ones) contrary to standard assumptions, and productivity gains show no evidence yet of flowing to workers rather than employers — making the distributional question the most consequential and least answered.

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