Tag Archives: AI and high-skilled labor

AI or Just Bots: the Truth about Artificial Intelligence

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Americans are becoming increasingly convinced that artificial intelligence is actually thinking like humans do…This fuels narratives about a future in which AI takes over the economy, leading to heightened insecurity for all of us while providing cover for companies that might be laying off workers for other reasons. It leads us to accept as true answers that are frequently made up or incorrect, even when we are repeatedly told that chatbots can’t stop delivering this kind of misinformation…Our cognitive biases developed to help us survive in complex social environments… We have evolved to view linguistic fluency as a proxy for intelligence, and engagement and helpfulness as indicators of trustworthiness. Builders of AI tools lean in to this deliberately. The humanlike qualities of chatbots are a calculated effort by designers and engineers to make AI more useful, but also more compelling and stickier [i.e. addictive]—just like social media.

Microsoft AI chief Mustafa Suleyman… warned that today’s seemingly conscious AIs [consists of a bunch of] highly accelerated information processors. “These systems are not waking up,” he wrote. “They are retracing and mirroring the contours of human drama and debate, as documented in their vast training data.” He recommends a solution: “Developers must actively engineer the illusion of consciousness out of the products.”…

Humans have a tendency to anthropomorphize animals and even inanimate objects, says Ayanna Howard, dean of Ohio State University’s College of Engineering and a robotics….Humans’ trusting nature makes sense for social creatures who must cooperate with members of their own tribe to survive. With AI and robots, however, this same tendency leads us to trust any system that appears to listen, understand and want to help, a phenomenon Howard calls “over-trust.” Today’s AIs are engineered to actively induce us to over-trust them, she adds. They do this by behaving in ways that are friendly and helpful, mimicking us through memory and personalization.

Excerpt from Christopher Mims, Why Even Smart People Believe AI Is Really Thinking, WSJ, Mar. 20, 2026

The Brute Force of Capital: A 2026 Update

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In 1985, IBM was America’s most valuable company, one of its most profitable, and among its largest employers, with a payroll of nearly 400,000. Today, Nvidia is nearly 20 times as valuable and five times as profitable as IBM was back then, adjusted for inflation. Yet it employs roughly a 10th as many people. That simple comparison says something profound about today’s economy: Its rewards are going disproportionately toward capital instead of labor. Profits have soared since the pandemic, and the market value attached to those profits even more. The result: Capital, which includes businesses, shareholders and superstar employees, is triumphant, while the average worker ekes out marginal gains….The brute financial force of all that wealth means market fluctuations… Meanwhile, artificial intelligence could funnel even more of economic output toward capital instead of labor. Amid reports in February 2026 that layoffs are climbing and job openings plunging, especially for professionals exposed to AI, the Dow Jones Industrial Average closed above 50 000 for the first time.

Excerpt from Greg Ip, The Big Money in Today’s Economy Is Going to Capital, Not Labor, WSJ, Feb. 9, 2026

Out-of-Date: Academic Cooperation

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Mr. Trump noted in the summer of 2025  that “the United States is in a race to achieve global dominance in artificial intelligence,” which Joe Biden called “a defining technology of our era.” Universities help drive that race. Meta’s chief AI officer, Alexandr Wang, has argued that the rate of AI progress may be such that “you need to prevent all of our secrets from going over to our adversaries and you need to lock down the labs.”

Thousands of Chinese citizens are working and studying in such labs….In AI specifically, nearly 40% of top-tier researchers at U.S. institutions are of Chinese origin. Beijing is aggressively cultivating American-educated and American-employed researchers via the Thousand Talents program.

Blindly embracing academic cooperation with a geopolitical rival is absurd. Nobody suggests we should train Iranian nuclear physicists or Russian ballistics engineers. The U.S. wouldn’t have been better off collaborating more with Nazi Germany in the 1930s or with the Soviet Union during the Cold War. Why make an exception for a nation dedicated to surpassing the U.S. in emerging technologies?

Excerpt from  Mike Gallagher, Send Harvard’s Chinese Students Home, WSJ, Aug. 19, 2025

McKinsey Loves its Bots and Proud of It

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Companies have paid dearly for McKinsey’s human expertise for nearly a century, relying on the firm’s armies of consultants to synthesize complex information, crunch huge amounts of data and map out solutions to thorny business challenges. But what happens now that AI can do much of that analysis in a matter of minutes—and deliver a slick PowerPoint deck to boot?… McKinsey has reduced its head count…and rolled out roughly 12,000 AI agents. These bots now assist consultants in building PowerPoint decks, taking notes and summing up interviews and research documents for clients.

Traditionally, a strategy project might have required a project leader, four consultants and a partner. Today, it might need a leader and two or three consultants—alongside a few AI agents and access to “deep research” capabilities. Bob Sternfels, head of McKinsey, said he sees a day in the not-too-distant future when McKinsey has one AI agent for every human it employs. “We’re going to continue to hire, but we’re also going to continue to build AI agents,” he said. 

Excerpt from Conor Grant, AI Comes for Consulting, McKinsey Faces an “Existential” Shift, WSJ, Aug. 8, 2025