The rise of artificial intelligence (AI) promises significant advancements, but it may also exacerbate wealth inequality. Larry Fink, the CEO of BlackRock, emphasizes the need for global leaders in business and politics to proactively address these challenges, ensuring that workers benefit from the financial growth that AI could generate.
In his opening remarks at the World Economic Forum in Davos, Switzerland, on January 20, Fink stated, “If AI replicates the impact of globalization on white-collar jobs, we must face this issue directly. This isn’t about vague notions of ‘the jobs of tomorrow,’ but rather about creating a credible plan for inclusive participation in the economic benefits.”
Fink’s concerns echo the findings of experts who attribute the decline of blue-collar jobs and wages in the United States to increased global trade and corporate outsourcing during the latter half of the 20th century, despite rising corporate profits benefiting corporations.
He warns that as generative AI continues to develop, it may similarly impact white-collar roles, particularly at a time when key industry leaders—ranging from Amazon’s Andy Jassy to Ford’s Jim Farley—discuss potential layoffs and hiring freezes to incorporate AI tools into their operations.
Evidently, the analogy to past technological disruptions is valid, as per economist Lawrence D. W. Schmidt from MIT, who has researched AI’s implications for the labor market. Historical technological shifts have invariably created both “winners and losers,” he notes, referring to past transitions influenced by digital technologies, logistics advancements, and communication innovations facilitating globalization.
Schmidt elaborates, “Technological changes often devalue existing skills while simultaneously generating new job opportunities, suggesting that AI may not be fundamentally different from prior innovations.”
The impact of AI is particularly palpable for knowledge workers, as it automates repetitive, data-heavy tasks that typically characterize white-collar jobs. Dario Amodei, CEO of Anthropic, cautioned in a recent essay that “AI could potentially displace half of all entry-level white-collar jobs in the next 1 to 5 years, even while it fosters economic growth and scientific advancement.”
AI as a ‘Powerful Ally’ for Workers
Despite the rising integration of AI within workplaces, the technology has not yet met workers’ most dire predictions, Schmidt points out. According to a study from the Budget Lab at Yale University released in October, since the launch of ChatGPT by OpenAI in November 2022, there has been no “discernible disruption” to the job market.
Key figures in the AI sector, including Nvidia CEO Jensen Huang, assert that any potential disruptions from AI’s increased adoption will be counterbalanced by new job opportunities that arise from heightened productivity and economic growth.
“You won’t lose your job to AI, but you may lose it to someone who effectively uses AI,” Huang stated at the Milken Institute’s Global Conference in May 2025.
Companies that successfully harness AI are likely to experience enhanced productivity, leading to growth in revenue and personnel, Schmidt explains. This growth resembles a “rising tide that lifts all boats,” creating “enormous opportunities for many new roles that did not previously exist.”
His recommendation is to leverage AI to boost personal productivity and redirect remaining time towards tasks that AI may struggle with, such as developing soft skills like communication, creativity, and critical thinking.
For Schmidt, adapting to these changes is crucial to heed Fink’s warning. As Fink emphasized, support from businesses and government is paramount. Employers should “assure existing workers that their jobs are secure if they collaborate to explore how AI can enhance efficiency and productivity,” he adds.
“The more we focus on capturing the benefits of AI—ensuring that those at risk of displacement are empowered to work alongside AI in novel ways—the brighter the future of work appears,” concludes Schmidt.
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