Artificial Intelligence and the Future of Jobs: What It Might Mean for the Economy and Markets

A Familiar Pattern: Technology Reshapes Work, but Also Creates It 

Concerns about job displacement are not new. The Industrial Revolution reduced the need for agricultural labor but also introduced an entirely new manufacturing economy. The introduction of the personal computer reshaped office work but opened the door to software, IT services, digital media, and other high-growth sectors. And the internet era automated tasks that were once done manually while simultaneously creating millions of new jobs in fields like cybersecurity, e-commerce, and data analytics. 

AI is poised to follow a similar arc. Early adoption trends already show that companies are deploying AI not only for automation but also to enhance productivity and support decision-making.  

According to the U.S. Census Bureau’s Business Trends Survey, AI adoption among firms has grown meaningfully in the last year, with an estimated 5.4–9% of U.S. businesses now using some form of AI. That figure is expected to rise significantly over the next decade as organizations seek tools that improve efficiency or help manage increasingly complex data environments. 

As with past technological shifts, the long-term labor market impact is likely to be mixed: certain functions may become more automated, but new types of work – especially those requiring advanced technical skills, creativity, and oversight – will emerge. 

read more below

What Increased Automation Could Mean for the Economy 

AI’s core promise is productivity. If businesses can complete work faster, with fewer errors, or at lower cost, productivity may improve at the macro level. Historically, productivity growth has been a key driver of economic expansion. However, transitions of this scale also tend to unfold unevenly across industries and time periods. Several potential dynamics could shape the economic environment over the next decade: 

1. Efficiency gains for early adopters: Companies integrating AI into operations, analytics, or customer service may see improved scalability. In past cycles—such as the introduction of industrial machinery or computing—firms that adopted new technologies early often gained a competitive advantage. 
2. Shifts in labor allocation: As repetitive or rules-based tasks become more automated, labor may shift toward higher-value functions. This mirrors historical patterns in which workers moved from agriculture to manufacturing, then from manufacturing to services. 
3. Wage pressures in high-skill sectors: Demand for workers who can develop, guide, or manage AI may increase. This could contribute to wage dispersion between technical roles and nontechnical roles, similar to what occurred during the digital revolution. 
4. Short-term adjustment risks: Periods of technological transition can involve worker retraining needs, friction in hiring markets, and uneven impacts across industries, which may temporarily influence consumer sentiment or spending. Taken together, these factors suggest that AI’s economic impact is unlikely to be uniform. Instead, we may see periods of disruption followed by periods of stronger growth as the technology matures. 

Potential Market Implications 

While markets are forward-looking, history reminds us that transformative technologies can influence market structure as industries evolve. Several themes may be relevant: 

Broader adoption beyond technology: AI is no longer confined to large-cap tech firms. Demand is expanding across sectors, including infrastructure, utilities, and healthcare, as organizations explore how AI can improve services or reduce operational complexity . 

Narrow leadership may broaden over time: Previous innovation cycles (e.g., early computing, early internet) often began with concentrated market leadership and later expanded as adoption grew. While each cycle is unique, diversification remains essential, particularly when a small group of companies plays an outsized role in index performance. 

Potential for reduced information gaps: AI can analyze research or market data at extraordinary speed. As adoption increases, price disparities may become less frequent, making it harder for individual investors to identify mispriced securities based solely on public information. That underscores the continued importance of disciplined portfolio construction and long-term planning. 

Risks remain integral to the conversation: Cybersecurity vulnerabilities, misinformation, model errors, and lack of transparency remain key concerns highlighted by industry experts and regulatory bodies . As with any innovation, the path forward carries both benefits and limitations that investors should carefully weigh. 

What It Means for Investors Today 

AI’s influence on jobs, productivity, and markets may ultimately echo previous periods of deep technological change: disruptive in the short term, transformative over the long term. For investors, the key is not to chase headlines, but to stay grounded in time-tested principles: maintain a globally diversified portfolio; revisit your plan as your goals or the market environment evolves; assess exposure carefully, both to emerging opportunities and to associated risks; and work closely with a financial advisor who can help evaluate complex, rapidly moving trends through the lens of your long-term objectives. 

A thoughtful, goals-based approach remains one of the most effective ways to navigate change with confidence. That’s what our Plan Well, Invest Well, Live Well™ strategic financial planning process is designed to do. To see how we can help to guide you and your finances through the future with “Absolute Confidence. Unwavering Partnership. For Life.”, schedule a complimentary discovery session at whzwealth.com or call (860) 928-2341. 

Authored by WHZ Strategic Wealth Advisors Senior Partner, Chief Strategist James Zahansky, AWMA®. AI may have been used in the research and initial drafting of this piece. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. 697 Pomfret Street, Pomfret Center, CT 06259 and 392-A Merrow Road, Tolland, CT 06084, 860.928.2341. http://www.whzwealth.com. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. WHZ Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice.