Morgan Stanley (NYSE:MS) says white-collar workers facing the greatest exposure to artificial intelligence could also capture some of its biggest economic benefits.
High-income, college-educated and city-dwelling workers could benefit from AI through productivity-driven wage growth, new job creation, wealth gains and longer-term disinflation, according to a report published by Business Insider on Sunday.
AI’s Impact
Morgan Stanley economist Heather Berger said younger workers could face greater disruption as AI takes over routine, entry-level tasks, while older workers could see productivity gains without being fully replaced.
"In terms of job creation, it is still early, but new AI-related occupations have so far been aimed at these same CHIC consumers," Berger wrote, according to the report.
Morgan Stanley uses "CHIC" to describe college-educated, high-income, city-dwelling households. The group is considered particularly exposed to AI-related changes in the labor market, while also standing to benefit from productivity and wealth gains.
The entry-level risk presents a different concern. Former Microsoft President Jeff Raikes has warned that replacing early-career work with AI could limit opportunities for younger workers to develop critical thinking and professional judgment.
Berger also wrote that AI-related job postings have been targeted toward higher-income consumers with experience in highly exposed industries, according to the report.
Productivity And Wealth
Morgan Stanley has previously said AI could raise productivity without causing widespread job losses, depending on whether the technology primarily augments workers or replaces them.
The bank has also pointed to a potential longer-term disinflationary effect as productivity gains from AI spread across the economy.
AI could affect asset markets and household wealth. High-income households hold more equity wealth relative to annual labor income than lower-income households, making asset-market gains an important part of how AI could affect spending.
Morgan Stanley’s analysis says AI’s effects could differ across income groups and influence labor income, asset markets, consumer prices, policy and consumer spending.
The firm’s analysis comes as businesses continue adopting AI across highly exposed industries. The technology’s effects on employment remain uneven, with younger workers facing pressure from changes to entry-level tasks while new AI-related occupations emerge.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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