Social Inequality in the Age of AI: Implications for Labor, Wage Distribution, and Worker Power

This article critically examines the multifaceted impact of artificial intelligence (AI) on social stratification, situated within the broader historical context of automation-driven productivity advances. Drawing on empirical evidence and evolving theoretical frameworks, we elucidate the intricate dynamics of labor market transformation, skill obsolescence, and wage distribution in the nascent AI epoch. We employ a nuanced task-based approach to move beyond simplistic dichotomies of skill-biased technological change, offering a granular understanding of AI-induced labor market polarization. Our analysis reveals that AI is reshaping the contours of inequality through complex interactions of skill restructuring, wage decoupling from productivity, and shifts in worker bargaining power. We argue that the current trajectory of AI development may accelerate capital-biased technological change, potentially exacerbating existing inequalities. This article not only contributes to the scholarly discourse on technological unemployment and income inequality but also serves as a foundation for evidence-based policymaking in navigating the uncharted territories of human-AI interaction.