The Department of Labor is addressing a 'misunderstanding' about AI and job losses.

• At the CNBC Work Summit, Department of Labor Acting Secretary Julie Su stated that the future of artificial intelligence in the workplace is not set in stone and workers should speak up now.
• The DoL Secretary emphasized the importance of avoiding the belief that job displacement is inevitable in all sectors of the economy, as successful strikes in television, film, and autos have included AI as a bargaining point.
• Daron Acemoglu, a MIT economics and labor expert, stated at the event that although there is a potential for AI to enhance workers' jobs and lives, the current trajectory is misguided.

Unions have recently taken strong positions in negotiations for improved worker deals across various industries, including autos and Hollywood, with AI and automation being their main demand. According to Julie Su, President Joe Biden's Acting Secretary at the Department of Labor, there is a lesson for all workers in this: AI replacing workers is not a certainty.

Su stated in a conversation with CNBC Economics Reporter Steve Liesman at the virtual CNBC Work Summit on Wednesday that it is not inevitable when workers have a seat at the table and can make choices and demands.

Su stated that in all the negotiating tables she has been involved in or observed, from healthcare to Hollywood and hospitality, workers are expressing a desire for flexibility in how AI is employed.

There are valid reasons from history that workers should not become complacent as AI is integrated into the workplace. Su pointed out recent negative consequences of technology on workers, such as health and safety concerns resulting from increased automation, surveillance technology used for various purposes, including to discourage workers from organizing, and AI that can perpetuate discrimination and bias in hiring and promotion. However, Su acknowledged that when designed appropriately, AI can also eliminate bias in the hiring process.

"We need to anticipate the effects of AI on the workforce," Su stated.

Su stated that while job displacement may occur, the government should focus on assisting affected workers. However, innovation can enhance the lives of workers by performing tasks that are challenging or physically demanding. Su emphasized that this is not just about preparing for the arrival of robots, but rather about making informed decisions that will determine the outcomes.

She emphasized that none of it is predetermined.

The Labor Secretary stated that the recent Executive Order from the Biden administration on AI is the most comprehensive from any administration and outlines the roles that the government and private sector should collaborate on in developing and deploying AI in ways that benefit workers while also including safeguards.

She stated that one of the greatest misconceptions is that it's either innovation or workers' rights.

We must not choose between innovation and worker wellbeing," Su said. "Instead, we should emphasize that innovation and workers' rights should be complementary.

Daron Acemoglu, a professor of economics at MIT and co-author of "Why Nations Fail" and "Progress and Prosperity," stated that while Su's central theme may be logically consistent, the choices made so far do not inspire confidence in the future of workers.

Acemoglu, an economist who specializes in labor and inequality, has been cautioning policymakers about the potential negative consequences of AI on jobs for years. He believes there are two possible outcomes, one being a best-case scenario, but so far, he does not see our labor market moving in that direction.

One challenge for workers, as stated at the Work Summit, is the significant difference between the most optimistic and pessimistic outcomes when considering AI's impact.

Acemoglu believes that the best-case scenario for AI is that it will be pro-worker, focusing on enhancing human abilities and problem-solving skills, ultimately leading to better job opportunities, higher wages, and reduced inequality.

The worst case scenario for workers

The worst-case scenario is very terrifying, as it would harm the economy by firing numerous workers, exacerbate inequality among capital and labor, and negatively affect democracy and other social fabric aspects.

Others are also cautioning about the emerging inequality problem.

Since its inception in the mid-20th century, the focus of most AI research has been on improving outcomes for workers.

Acemoglu stated that the AI field has been influenced by Alan Turing's groundbreaking concepts, which prioritize autonomous machine intelligence as the main objective. The drive to create increasingly human-like machines is motivated by this agenda.

Acemoglu's preferred approach is "enhancing the machines' usefulness to humans."

To ensure the feasibility and social desirability of pro-worker, pro-human AI, we must first establish a consensus around this idea. Once we have achieved this, we must then consider the institutional structure necessary to guarantee its success.

OpenAI's recent executive turmoil has been cited by Acemoglu as an example of the ongoing tensions between labor and the winning side, which is moving full speed ahead with an approach that may not lead to the best outcomes for workers, with incentives aligned with market dominance and becoming the largest player in AI.

Acemoglu stated that relying on a select group of powerful individuals in Silicon Valley to make decisions is not a positive sign. Given the vastly different results, he expressed skepticism that the market would resolve the issue on its own.

Every leader considers labor as either a cost to be reduced or a valuable resource that requires enhancement, with most leaders adopting a combination of both perspectives, according to him.

He believes that organizations will gain a greater competitive advantage by assisting workers in performing more intricate tasks and improving the quality of their products and services.

Acemoglu believes that by providing tools to improve their skills, blue-collar workers, electricians, nurses, and teachers can become more capable and create higher quality services.

Currently, he perceives the world as taking the simplest route, with the least resistance, through automation as a business strategy and the accumulation of data.

Acemoglu stated that taking a step back is necessary to consider our goals and how to achieve them, which we are not currently doing.

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