Basel Generative AI and Labor Market


On Sep. 2, Basel analyzed inequality effects on the US labor market.


  • Basel issued working paper on generative AI inequality effects in the US labor market, and how it might complement/substitute human work in 711 occupational categories.
  • Modelled relationships between cognitive AI capability and job complexity to highlight effects on core and side skills and investigate impact across wage distribution.
  • Findings
  • High-wage occupations are more exposed to AI, but usually complements them by handling some side skills, while their core expertise remains beyond AI's capabilities.
  • Despite a common belief that AI could displace many white-collar roles, these positions appear less vulnerable in the medium term due to the complexity of their core skills.
  • Low-wage occupations are less exposed but AI can usually perform their skills, making them more likely to be replaced and potentially exacerbating economic inequalities.
  • Paper also discussed policy implications of these findings, stressing importance of skills development, transparency, global labor policy cooperation to mitigate adverse impact.

Regulators Basel
Entity Types Corp
Reference WP, 1207, PR, 9/2/2024
Functions Financial; HR; Operations; Reporting; Risk; Technology; Treasury
Countries Global Regulator
Category Global Standards Body
State
Products AI; Corporate
Regions Global
Rule Type Guidance
Rule Date 9/2/2024
Effective Date 9/2/2024
Rule Id 224593
Linked to N/A
Reg. Last Update 9/2/2024
Report Section International

Last substantive update on 09/04/2024