Decomposing Work
Every job is a bundle of tasks. A lawyer researches cases, drafts documents, meets clients, and argues in court. An AI might not be able to "be a lawyer" yet, but it can certainly research cases and draft documents faster than a human.
When machines take over the profitable or volume-heavy tasks, the economic value of the human worker decreases, even if they are still employed to do the "human bits."
The Invisible Phase
Early automation often looks like a productivity tool. It complements the worker. But the impacts on the labour market show up in invisible ways before mass layoffs occur:
- Reduced Hiring: A firm that used to hire 10 graduates now hires 2, because AI tools do the grunt work.
- Barriers to Entry: Junior roles (where humans used to learn the trade) disappear, creating a "missing middle" in skills development.
High Value Targets
A common myth is that automation only targets low-wage, repetitive work. In reality, automation targets high-cost tasks where the return on investment is highest.
Automating a radiologist's analysis (high wage) is often more lucrative for a tech company than automating a cleaner's work (low wage).