Ever since AI has made its debut, it has become one of the important talking points across industries. While it offers great ease to complete the tasks and make technology fun, the questions around it taking the blue collar jobs is among the greatest fears that every employee now has. Many experts have already shared their stance on the situation and now the former Salesforce CEO has shared her thoughts.
Clara Shih, former CEO of AI at Salesforce, stated that wage pressure may be a more widespread and subtle impact of AI. In her recent post, she stated that while some roles will be replaced, history shows technology has often reset wages instead of eliminating the entire profession.
Shih added three possible scenarios. First, she mentioned an intra-sector squeeze. As jobs in specific industries decline, displaced workers compete for fewer opportunities in the same field. This increases competition, which ultimately lowers salaries. She also cited the decline in US manufacturing jobs in the early 2000s as a clear example of how automation and global trade reduced opportunities and wages.
The second factor was lowering the skill barriers. AI tools can simplify complex tasks, allowing more people to do work that previously required specialised expertise. This broadens the talent pool while lowering the premium attached to specific skills. She also provided examples of how GPS and ride-hailing apps reduced the need for traditional navigation expertise.
The third trend, she explained, was job switching. Workers who are displaced from higher-paying jobs frequently move to new industries, often accepting low wages. It may also have an impact on existing workers in those fields, causing downward pressure across the board.
The experts also stated that the focus should not be restricted to numbers.The salary trend may provide a clear picture of AI’s true impact on the market. Experts have also stated that while AI-driven productivity can result in initially higher salaries, the effect may not last. As automation spreads, the balance may shift from augmentation to replacement.