Navigating the Job Market’s Future: AI’s Dual Influence Unveiled

The evolving landscape of AI’s economic influence on the job market remains complicated as more real-world data emerges.

On one side, companies like Duolingo are boldly pivoting to an “AI-first” model. CEO Luis von Ahn has stated that the language learning platform will “gradually cease using contractors for tasks that AI can handle.”

This shift began in 2024, when contractors raised concerns on Reddit after receiving notifications about their potential elimination.

One participant shared an email from Duolingo saying, “Here’s the last email I received a fortnight ago. Just in case you wanted to see it. I worked there for five years. Our team had four core members, and two of us were let go. The remaining two will merely oversee AI-generated content for quality.”

As Duolingo accelerates its transition to being ‘AI-first,’ von Ahn recently described this approach in a note to LinkedIn as a way to eliminate bottlenecks and allow employees to concentrate on more creative tasks, rather than outright replacing them.

This viewpoint resonates with other tech leaders as well. For instance, Shopify’s CEO, Tobi Lütke, recently instructed teams to justify new hires by demonstrating how AI could not fulfill their needs.

The underlying message is that if a task can be automated, it should be, with human efforts shifting towards higher-level responsibilities that machines cannot easily replicate.

However, the specifics of these ‘higher-order’ roles are somewhat unclear. Moreover, the debate around whether AI can match the quality of original human work remains contentious. In his note, von Ahn even conceded that a minor dip in quality is acceptable if it enhances speed.

Conversely, a new paper by economists Anders Humlum and Emilie Vestergaard challenges the notion that AI is currently revolutionizing the job market.

By examining