Artificial intelligence has seamlessly integrated into our workplaces, and today, many of us rely on it to manage our schedules, automate repetitive tasks, draft communications, and much more.
While much of the discussion around AI has focused on its downsides—such as copyright concerns with generative models, job displacement, and inherent biases—it’s clear that AI-driven tools also offer significant advantages.
However, as AI continues to reshape the nature of work and the time it takes to complete tasks, it is also poised to transform how workers are compensated, Yahoo Finance reports.
Last year, Laura*, a public relations professional, took on freelance work for a communications firm that fit her schedule well. Being paid by the hour allowed her to manage her time around commitments like picking up her kids from school.
But when the company introduced generative AI to “streamline” operations, her working hours were cut, and so was her income.
“Workers in creative industries are already seeing their earnings decline,” says Paul Nowak, general secretary of the Trades Union Congress (TUC). “AI tools that generate images, text, and music rely on human creativity as their foundation. But this work is being used without compensation.”
“There needs to be stronger protections for the rights of artists and creative professionals, including safeguards for their intellectual property.”
AI and the reshaping of jobs
AI is undoubtedly capable of eliminating many mundane tasks that workers find tedious. However, in numerous industries, this will lead to a restructuring of roles.
“This gives employers an opportunity to push wages down, just as we saw with the rise of the internet,” Nowak notes.
“From digital content creators to warehouse workers at online retailers, many of the new jobs created have lower pay and worse conditions compared to the positions they replaced, such as print journalists and retail staff.”
The extent to which AI affects salaries depends heavily on the job and industry. A recent study by consultancy firm PwC found that jobs requiring AI-related skills command significantly higher salaries than those that don’t.
In the U.S., AI-related roles offer wages that are, on average, 25% higher than comparable jobs without AI expertise, while in the U.K., the wage premium is 14%. These disparities are particularly evident in professions such as law and financial analysis.
However, for hourly and shift-based workers—especially those in low-skill industries—AI has the potential to limit earnings. Experts warn that one major concern is that employees may see reduced working hours as aspects of their jobs become automated.
A growing challenge for creatives
For artists, the outlook is even more troubling. A global economic study suggests that within just four years, a quarter of musicians could see their financial stability threatened by AI-generated music.
Music creators are projected to lose up to €10 billion over the next five years, while the very tech companies developing AI music generators could see around €4 billion in profits.
Dr. Erin Chao Ling, assistant professor of AI and the future of work at the University of Surrey, warns that employers are using AI as a tool to cut back on paid working hours for human employees while demanding higher productivity without increasing wages.
“Occupations with the highest exposure to AI will experience the most disruption,” she explains.
AI adoption gaps and wage inequality
Gaps in AI adoption could further widen wage disparities, says Fabian Stephany, a research lecturer in AI & work at the Oxford Internet Institute (OII), University of Oxford.
A gender divide in AI usage is already apparent: over half (54%) of men use tools like ChatGPT at work or home, compared to just 35% of women.
“Those who fail to adopt these technologies, or lack access to them, risk missing out on productivity gains and, by extension, potential salary increases,” Stephany explains.
“Similarly, younger workers are more likely to embrace these technologies faster than older employees. If such adoption gaps persist, they could reinforce existing wage inequalities—or even create new ones—along gender and age lines.”
Addressing income loss in an AI-driven workforce
The pressing question remains: how can workers mitigate income loss due to AI? Could stronger policies and protections help counteract the issue?
In a world where AI is rapidly becoming a workplace staple, adaptability is crucial, says Stephany.
“One of the most effective steps for anyone concerned about AI-driven wage disparities is to focus on developing and refining AI-related skills,” he explains. “This doesn’t necessarily mean becoming a professional AI developer—skills like prompt engineering, instructing AI chatbots, and effectively integrating AI into daily workflows can significantly boost competitiveness.”
“Many online learning platforms now collaborate with established universities and industry leaders to offer AI-focused courses. Additionally, self-directed learning and on-the-job training provide alternative pathways, with free resources, tutorials, and community forums enabling individuals to upskill at their own pace.”
However, AI is not without its flaws—it is only as good as the data it learns from, which often contains biases. While AI is a useful tool, human oversight remains essential in areas such as critical thinking, creativity, ethical decision-making, problem-solving, and contextual understanding.
Christy Rutherford, a talent development and retention expert, stresses that an individual’s value in the workplace isn’t diminished simply because AI can automate some tasks. “We are paid based on the value we bring to organizations,” she says. “If a role’s value decreases due to AI, that doesn’t mean the person’s value has gone down. The key is figuring out how to increase one’s value within the company—or elsewhere.”
Still, continuous upskilling is only a short-term fix if companies keep shifting the goalposts.
