37% of Hourly Workers Already See AI on the Job

§ 01 Executive Snapshot

• What: 37% of hourly workers in the U.S. report encountering AI in their jobs.
• Who: Hourly workers in the Labor Economy, defined as those earning up to $25 an hour, and the PYMNTS Intelligence study.
• Why it matters: The findings highlight a growing divide in job security and preparedness among low-income workers as AI becomes increasingly integrated into various industries.

§ 02 Key Developments

• 37% of Labor Economy workers reported that their employer introduced new automation or AI tools in the past year.
• Nearly 60% of affected Labor workers did not receive any training on the new AI technology, and only 42% received instruction on using the tools.
• Only 39% of Labor Economy workers felt confident they could find comparable-paying work if their current role was eliminated by technology.

§ 03 Strategic Context

• The Labor Economy includes about 60 million adults in the U.S., representing roughly 15% of annual GDP, highlighting the significant economic impact of its workforce.
• AI's integration into various sectors such as logistics, hospitality, and caregiving indicates that automation is not limited to high-tech industries but is affecting everyday jobs.

§ 04 Strategic Implications

• Immediate implications include a potential increase in job insecurity among low-income workers, which could affect consumer spending and economic stability.
• Long-term, companies may need to invest in training and support systems for workers to mitigate the adverse effects of automation on job security and financial resilience.

§ 05 Risks & Constraints

• A significant risk is the lack of training for low-income workers, which could lead to higher unemployment rates as AI adoption increases.
• The divide in financial resources between low-income and higher-income workers may lead to greater economic disparities as AI becomes more prevalent in the workforce.

§ 06 Watchlist / Forward Signals

• Monitoring the implementation of training programs by employers and financial institutions could signal efforts to close the resource gap for Labor Economy workers.
• Observing trends in job security confidence among Labor Economy workers in the coming months will indicate how well they are adapting to AI integration in their roles.