Artificial intelligence is beginning to change not only individual jobs, but entire industries and business models. New AI systems are now capable of completing complex tasks that once required teams of skilled workers or specialized software. As a result, companies, universities, and professionals are increasingly questioning how AI may reshape the future of work.
In this lesson, we examine concerns about how AI could affect careers in fields like economics, law, and consulting, and explore how education may need to adapt to a changing labor market. As AI becomes more capable of handling structured cognitive tasks, the value of human skills may increasingly depend on creativity, judgment, and the ability to work effectively with AI tools.
| As AI spreads, entry-level economics jobs are shifting |
Warm-up question: Do you think AI will mostly replace jobs, or will it create new kinds of work opportunities?
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David Brancaccio: I’m David Brancaccio in Los Angeles. A lot of money shifted on stock markets yesterday amid the realization that artificial intelligence could replace not just workers, but entire business models, especially business software. The catalyst was in part a new release of Anthropic’s Cowork system that doesn’t just answer questions put to it, but follows through on entire tasks. For example, it might vet a legal contract, or book a whole business trip in one fell swoop, or create a whole deck of slides for a sales pitch. Down went companies that sell traditional software. LegalZoom stock fell nearly 20%, Salesforce was down about 7%, Expedia—the travel service—down 15%. The dread felt by human accountants, lawyers, and travel agents now extends to the software firms that had digitized some of their work. This extends to entire professions. Is it even worth getting a degree now in economics, long considered a solid route to employability? Economics departments at colleges and universities are worried and working to adapt. We’re joined now by Wendy Carlin, a professor of economics at University College London and director of the CORE Econ open-source curriculum project. Professor, welcome.
Wendy Carlin: Thank you. It’s great to be with you.
David Brancaccio: Studying economics can pay off, we know this, but first you gotta get a job when you get out of school. How deep, professor, how deep is your concern that artificial intelligence might be a cheaper alternative to hiring your econ majors?
Wendy Carlin: I’m worried about this. The evidence that people are referring to relates, for example, to the drop in the hiring of juniors in firms that are adopting AI. And we’ve got to really think about, you know, why did economics majors get a premium in the labor market and how is that being undermined?
David Brancaccio: Now, this is more than just an abstract concern about the future. I think you were privy to information out of Hong Kong where employers were needing less—fresh econ majors?
Wendy Carlin: So this was top of mind for the dean of the business school at Hong Kong University. They’re very worried about the future of their econ and business majors through their conversations with employers in the city. And another colleague in Hong Kong said that his contacts in consultancy and finance are now hiring philosophy and history majors rather than econ or business majors.
David Brancaccio: I mean, if you have to change your approach to economics education to adapt to the presence of AI out in the real world, what are some ways to think about that?
Wendy Carlin: Anyone who’s done an economics degree will remember that they spent a lot of time doing “problem sets.” These are very well-specified or structured cognitive tasks. So we have to really rethink our classrooms and get those problem set sessions out of the way. They’re going to learn how to do that much better individually working with AI as a tutor than they are in a classroom with, you know, 20 other people.
David Brancaccio: And I mean, I think it even goes without saying that artificial intelligence can be a great tool. So if you could come up with a crop of econ majors who are super pros at using AI to solve even more advanced problems, maybe they would stand a shot of finding work.
Wendy Carlin: Yes, I think that—that’s what we should be aiming for, and it’s part of our job to help students to get the AI to work for them, but not to take away the opportunities that they have to learn the benefits of the hard work that has to be put in, which is going to make you useful. And also it’s going to bring you fulfillment in a way that just getting the answer from the AI can’t.
David Brancaccio: Wendy Carlin is a professor of economics at the University College London and has spent a lot of time with the CORE Econ project, which offers free online textbooks and resources. Professor Carlin, thank you for this update.
Wendy Carlin: It’s a pleasure.
Vocabulary and Phrases:
- catalyst: something that causes or speeds up change or action
- vet: to carefully examine or evaluate something
- one fell swoop: all at once; in a single action
- dread: a strong feeling of fear or anxiety about something
- get a premium: receive higher pay or greater value compared to others
- undermined: weakened or damaged gradually
- abstract concern: a theoretical or indirect worry rather than an immediate problem
- privy to (information): having access to special or private information
- top of mind: receiving a lot of attention or concern right now
- cognitive task: a mental activity involving thinking, reasoning, or problem-solving
- goes without saying: something so obvious that it does not need to be stated
- crop: a group or collection of people or things appearing at the same time
Fill in the Blank Use the correct word or phrase from the vocabulary list.
- Solving complex math problems is an example of a __________.
- Lawyers must carefully __________ contracts before approving them.
- A new __________ of startups is focused on AI services.
- The company cut costs and reorganized operations in __________.
- The new technology acted as a __________ for major industry changes.
- Skilled engineers often __________ in the job market.
- Public trust in the company was gradually __________ by repeated scandals.
- Employee retention has become __________ for many businesses.
- At first, concerns about automation seemed like an __________ rather than a real threat.
- Only senior managers were __________ the merger discussions.
- It __________ that communication skills remain important in business.
- Many workers feel a sense of __________ about the future of AI.
Comprehension Questions:
- What new AI capability caused concern in the stock market?
- Why are economics departments worried about AI?
- How are some employers changing their hiring practices?
- What kind of classroom activities does Wendy Carlin think should change?
- What skills does Carlin believe students will still need in the future?
Discussion Questions:
- Which professions do you think are most vulnerable to AI? Why?
- Should universities change their programs because of AI?
- What human skills will remain valuable even if AI becomes more advanced?
- Would you still study a subject if AI could perform many related jobs?
- Do you think AI will increase or reduce inequality in the workplace? Why?
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