Foxbusiness

AI raises average wages by 21% and substantially reduces' wage inequality, researchers find

Original Published: January 17, 2026🟢Positive

🎯 Impact Sentiment: Positive

📋 Summary

  • Researchers found that AI use leads to a 21% increase in average wages and noticeably reduces wage inequality.
  • The equalizing effect of AI comes from "simplification," where the technology lowers the skill barrier, allowing more workers to compete for higher-skilled jobs.
  • AI-driven changes will cause significant job shifts: roles like administrative positions shrink, while science jobs expand, but some high-skill jobs (e.g., architects, engineers) may see wage drops.
  • Lower-skill workers benefit from increased opportunities, but some roles with larger employment gains might actually see lower relative wages.

💡 JR Insights

  • 💼 Implication: AI is shaking up old job hierarchies, making it easier for people without specialized training to earn more by tackling tasks that used to require higher credentials.
  • 🚨 Risk: The jobs that shrink fastest may be common office roles, leaving many workers scrambling for new skills. Plus, some professionals used to high paychecks could see salaries fall.
  • Takeaway: AI is a great equalizer—if you’re adaptable. Upskilling and switching to growing fields is smarter than clinging to shrinking ones. Tech won’t just replace jobs, it will change who gets access to the best paychecks.

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