Morgan Stanley economist: AI will hurt and help college-educated workers, with gains outweighing losses

Morgan Stanley economist Heather Berger argues that college-educated, high-income, urban workers face the most AI-driven job displacement but stand to gain the most from AI's economic benefits. Berger's team, which uses the acronym CHIC to describe this demographic, found that younger workers in this group may see routine tasks automated, while older colleagues could experience wage growth from AI-driven productivity gains. New AI-related job postings have targeted higher-income workers in exposed industries. Berger maintains that productivity gains, job creation, and wealth effects will outweigh displacement risks for this group. Her analysis challenges the prevailing narrative that AI poses an existential threat to white-collar employment.