AI: The Unexpected Minimum Wage Booster
Many discussions about AI focus on job losses. A common worry is that AI will replace human workers, particularly those in lower-paying jobs. But what if that fear is completely backwards? What if AI, instead of lowering wages, actually pushes minimum wages higher and gives more power to workers? It might sound strange, but the idea has merit and it is worth exploring.
AI and Increased Productivity
The core of this idea rests on productivity increases. Consider someone working in a basic data processing job. This person spends hours doing repetitive actions, and their output level is constrained by human limits of speed and focus. Now, introduce an AI tool to automate basic parts of that process. Suddenly, that person becomes more efficient. They process much more data per hour than before. If individual output goes up, the overall value that employee brings to the company also goes up. This change can't be ignored, and the company has reason to give raises. Increased output means an increased demand. This process goes far beyond only data handling jobs, for example, it can also affect many sectors of manufacturing or service industries.
The Value of Human Roles
AI can take over jobs that are tedious which frees up humans to do more rewarding tasks. If a customer service worker does not need to answer basic questions anymore because AI is responding to them, that person is available to deal with complicated, important client issues. This shift requires a better skillset, therefore, companies need to pay more. Instead of seeing people as just manual labor who can perform repetitive actions, we begin to see them as the value-added agents who work with the AI tools. This changed requirement pushes employers to pay higher salaries to attract and keep talent.
AI and Worker Bargaining Power
A crucial yet often overlooked change is how AI can shift power from the business to its employees. Here's a simple example: let's say an organization requires many people to do a regular task. If AI can do the task, the organization might still want some people to oversee the AI, but the dependency on a large, replaceable work force will go down. The organization simply does not need many of workers. A reduction in the work force makes each one of those workers more valuable, resulting in a situation where any employee has more leverage to ask for more money. This shifts negotiating power. Workers are not so easily replaced when AI is in the mix and they gain the power to ask for more pay.
The Adjustment Period
It's important to recognize that the shift won't happen overnight. There may be parts when certain jobs disappear while others take time to grow. There are challenges. People will need to train for new jobs or work with the technological requirements. This transition period needs programs from companies and governments to help, and to help workers get the new needed skill sets. This transition could be difficult or disruptive if not carefully managed. But the big picture view does show an opportunity for workers to be in a powerful position.
A Different Look at the Future
The focus on AI taking jobs is understandable but it can blind us to the possibly positive outcomes. AI can increase the production rate and value of each individual employee. It frees workers and provides a higher value for their contribution to the organization. It creates an opportunity for workers to negotiate higher pay. AI should not be viewed with fear, and it is important to understand the potential it has to push wages up and help workers. Considering the potential of AI to actually improve the lives of workers in the future, rather than making them a replaceable commodity, is the right focus. Maybe the future with AI is actually brighter than we had previously thought.
