Could AI Create a Permanent Underclass? A Cautious View of a Split Job Market

In the San Francisco Bay Area, some worry AI could concentrate productivity gains among a tech elite and high-skill workers, leaving many others with deskilled, lower-wage jobs. While the scenario isn’t guaranteed and evidence is debated, research suggests a bifurcated labor market where capital and expertise capture most gains. Policymakers may need stronger safety nets and upskilling to mitigate potential long‑run inequality if AI reshapes the economy.