AI Revolution: $1.2 Trillion at Risk in the U.S. Labor Market

 

 

 

AI Revolution: $1.2 Trillion at Risk in the U.S. Labor Market

A major new study from Massachusetts Institute of Technology reveals that artificial intelligence can already perform tasks tied to about 11.7% of the U.S. labor market, representing up to $1.2 trillion in wages across sectors such as finance, healthcare, logistics, and human resources.

 

The analysis is built on the Iceberg Index, a large-scale labor simulation tool developed by MIT in collaboration with Oak Ridge National Laboratory. The model maps more than 32,000 distinct skills across 151 million U.S. workers, identifying which tasks today’s AI systems can realistically handle. Researchers stress that visible signals—like headline tech layoffs—capture only a fraction of the broader, less obvious exposure.

 

Crucially, the index is not a job-loss forecast. Instead, it provides a skills-based map showing where AI-driven disruption is most likely, down to the ZIP-code level. Several states, including Tennessee, North Carolina, and Utah, are already using the data to inform workforce planning and evaluate reskilling strategies before committing large public investments.

 

The findings challenge the idea that AI risk is limited to coastal tech hubs. All 50 states, including rural regions, show meaningful exposure. Policymakers see the Iceberg Index as a way to prepare workers and local economies ahead of widespread change, focusing on adaptation rather than alarm.