By CultureBanx Team
- Black workers could potentially miss out on a colossal $40B chunk of the AI-created wealth
- AI is a powerful tool set to generate an estimated $500B in new household wealth by the year 2045
In the evolving world of Generative artificial intelligence (Gen AI), there’s a rising concern that Black workers could potentially miss out on a colossal $40 billion chunk of the AI-created wealth. The advent of generative AI could unintentionally deepen the racial wealth divide, posing a significant risk to Black workers. This is a major cause for concern around the disproportionate impact the future of generative AI could have on Black communities and diverse employees.
Why This Matters: AI is a powerful tool set to generate an estimated $500 billion in new household wealth by the year 2045. However, this wealth isn’t likely to be evenly distributed due to existing socio-economic disparities. Statistics are quite revealing as the median Black family has amassed about $44,900 in wealth, while the median white household holds $285,000 in total assets.
Many Black workers are employed in high-mobility jobs that don’t require a college degree. These positions are particularly vulnerable to disruption by AI technologies. Without strategic planning and equitable distribution of AI resources, these workers could face displacement and financial instability.
One of the most pressing questions about Gen AI is how it will affect workers, and particularly, workers of color. Black workers are overrepresented in roles most likely to be automated. In fact, they are increasingly overrepresented in four of the top five occupations at risk of automation: office support, production work, food services, and mechanical installation and repair.
Gen AI and the Racial Wealth Gap:
Gen AI could potentially widen the existing racial wealth gap without intervention to rectify long-standing patterns. According to estimates, annual global wealth creation from Gen AI is expected to be around $7 trillion, with almost $2 trillion of this projected to go to the United States, given its share of global GDP.
Black Americans capture only about 38 cents of every dollar of new household wealth despite representing 13% of the U.S. population. If this trend continues and projections of the growth of Black households are accurate, by 2045, the racially disparate distribution of new wealth created by Gen AI could increase the wealth gap between Black and white households by $43 billion annually.
AI: A Great Equalizer or a Divider?
The potential to significantly shift work patterns and wealth generation worldwide is at the core of Gen AI’s capabilities. New wealth generated by digital and AI capabilities circulates in an economy where the median Black household holds only about 15% of the wealth of the median white household.
The rapid evolution of AI technology necessitates that Black workers aren’t left behind. Responsible implementation and utilization of AI in the workforce can either serve as a great equalizer or further exacerbate existing inequalities. Furthermore, the choice lies in the hands of companies and their commitment to diversity, equity, and inclusion (DEI).
What’s Next: In the evolving world of artificial intelligence, the rising concern that Black workers could potentially miss out on a colossal $40 billion chunk of the AI-created wealth is startling. The advent of generative AI could unintentionally deepen the racial wealth divide, posing a significant risk to Black workers. Going forward there is still an opportunity to build equity and fairness into their developing Gen AI strategies and associated applications, and to accelerate the closing of the racial gap.
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