A study by Apollo Global Management’s Chief Economist Torsten Sløk reveals that artificial intelligence is impacting the labor market primarily through wage compression rather than job losses. Across 321 occupations tracked from 2015 to 2025, jobs with high AI exposure saw real wage growth come in 6.7% below their low-exposure counterparts after 2023, with no statistically significant change in employment levels. Service workers bore the sharpest impact, facing a 24.3% relative wage decline, while workers in the bottom earnings quartile saw wages drop 10.7% relative to peers in low-exposure jobs. The aggregate annual labor-income impact is estimated at approximately $28 billion, affecting around 5.8 million workers, averaging nearly $4,800 per person per year in lost wage growth. The study also found that AI is simultaneously fueling a surge in new business formations by reducing startup costs and barriers to entry.
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