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AI Cuts Tech Jobs, But Adds $18K to Salaries in Other Industries

Artificial intelligence is dramatically reshaping the labor market—and not in the way many expected. While AI adoption is fueling waves of layoffs across the tech industry, a new study reveals that in other sectors, the technology is doing the opposite: it’s lifting salaries by as much as $18,000 a year.

Tech Industry Turmoil

The study, conducted by leading labor economists and published by the National Bureau of Economic Research (NBER), shows that white-collar tech workers—software engineers, data analysts, and IT professionals—are bearing the brunt of AI-driven disruptions. As companies implement AI tools to automate coding, customer support, and data processing, thousands of roles are being eliminated or consolidated.

Major tech firms like Google, Meta, and Microsoft have all announced AI-related restructurings in 2024 and 2025, resulting in tens of thousands of layoffs globally. The trend, according to analysts, is only accelerating as generative AI tools mature and expand in capability.

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Salary Gains in Non-Tech Fields

Yet outside of tech, the same wave of AI adoption is fueling higher wages. According to the study, professionals in finance, healthcare, logistics, marketing, and manufacturing who work alongside AI systems are experiencing significant pay bumps—averaging $8,000 to $18,000 annually.

The reason? Productivity gains. Workers using AI tools to draft emails, analyze trends, write reports, or optimize logistics are accomplishing more in less time—making them more valuable to employers. In sectors where AI augments rather than replaces workers, companies are rewarding employees with higher compensation.

AI Skills Command Premiums

The wage boost is particularly pronounced among workers with AI-related skills. Even basic proficiency in prompt engineering or AI-based decision-making tools can add a premium of 10–20% to base salaries. “Employers are paying more for workers who can understand and manage AI, even if they’re not building it,” the report notes.

The Great Reskilling Divide

However, the findings also highlight a growing divide between those who adapt and those who fall behind. Workers in roles vulnerable to automation—and without access to retraining—risk displacement. Meanwhile, those who acquire AI competencies are increasingly reaping economic rewards.

Governments and private institutions are being urged to scale up reskilling initiatives to help workers transition. “AI is not eliminating jobs across the board,” the authors argue. “It’s reallocating opportunity—and income—toward those who learn to leverage it.”

A Reshaped Job Market

As AI continues to penetrate nearly every industry, the job market is entering a new era. While automation threatens some jobs, the broader effect may be one of transformation—not destruction—if workers can keep pace.

Bottom Line: AI is disrupting the tech industry, but it’s also driving a wage revolution elsewhere. The future belongs not just to coders, but to collaborators—those who can work effectively with machines.

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