the Dallas Fed

“For occupations with a very low experience premium, AI exposure has a more negative effect on wage growth since AI substitutes for both entry and experienced workers. The low experience premium suggests there is not much tacit knowledge required for the occupation, so experienced workers are easily substituted by AI,”

the Dallas Fed · said date not stated · reported 2026-09-13

A Dallas Fed analysis from February found that for occupations with a very low experience premium, AI exposure has a more negative effect on wage growth.

“The current model of white-collar career progression involves taking an entry level job right out of school and doing codifiable tasks while slowly learning the tacit knowledge to become an experienced worker. Firms are going to find that AI is making this method of employee development cost-ineffective, at least in the short run,”

the Dallas Fed · said date not stated · reported 2026-09-13

The Dallas Fed concluded that AI is making the traditional model of white-collar career progression cost-ineffective in the short run.

“Of course, leaving new employees off the job ladder is not sustainable in the long run. In the long run, AI adoption will require rethinking how entry-level employees gain experience on the job.”

the Dallas Fed · said date not stated · reported 2026-09-13

The Dallas Fed concluded that leaving new employees off the job ladder is not sustainable and that AI adoption will require rethinking entry-level employee development.