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The $10 Billion Startup Training AI to Replace the White-Collar Workforce
When Tasha Kozak, a social worker for the Hillsborough County Public Schools in Tampa, met the family, they were living in a car. The three children's grades had been slipping. The mother was exhausted. The father was out of the picture. Kozak began helping them connect to housing resources. She
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The economist who was terrified of AI just found a rare reason for hope | Fortune
Alex Imas didn't arrive at optimism easily. The University of Chicago economist economist occupies an unusual space in being one of the leading researchers on AI's labor market impact, but also one of its most avid adopters. Unlike many of his peers, he is taking the doomsday scenarios, perhaps
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In the future, will there be any work left for people to do? | Fortune
I am standing on a stage, behind a waist-high podium with my first name on it. To my right is a woman named Vicki; she's behind an identical podium with her name on it. Between us is a third podium with no one behind it, just the name "Watson" on the front. We are about to play Jeopardy! This is
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AI Job Loss Is Coming. Does Anyone Have a Plan?
The tech companies have ideas. In early April, OpenAI -- whose most cheery prediction says 18 percent of jobs will soon be automated -- rolled out a plan for a "New Deal" for workers: a 32-hour workweek, a public wealth fund, a tax on capital gains. On the moderate end, Anthropic's Dario Amodei
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Mercor, a $10 billion startup, recruits doctors, lawyers, and social workers to teach AI how to do their jobs—paying them as much as their full-time work. Meanwhile, economists debate whether AI job displacement will trigger economic collapse or simply shift labor to new sectors. Congress remains largely silent despite mounting evidence of disruption.

Tasha Kozak, a social worker in Tampa, earns as much training artificial intelligence for 20 hours per week as she does helping families in her 40-hour full-time role with Hillsborough County Public Schools
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. She's one of tens of thousands of white-collar professionals working for Mercor, a San Francisco startup valued at $10 billion that recruits experts to teach AI systems how to perform their jobs. The company, which raised nearly $500 million in venture capital from investors including Peter Thiel, Jack Dorsey, and Larry Summers, operates like an Uber for AI training—connecting skilled workers with gig opportunities at major tech companies including OpenAI, Anthropic, and Meta1
.Kozak discovered Mercor through a LinkedIn job posting and was interviewed by an AI agent with a conversational style that probed her experience with targeted questions
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. Her work involves writing prompts for AI models to perform specific social work tasks based on fictitious case files, then evaluating the AI's responses. In San Francisco, pediatric hospitalist Melania Poonacha logs 10 additional hours weekly asking AI to interpret lab results. In Baton Rouge, novelist Robin Palmer Blanche evaluates AI-generated creative writing after struggling to make a living since the 2023 Hollywood writers strike1
. These professionals are methodically translating their expertise into training data that could eventually replace the white-collar workforce they represent.Alex Imas, a University of Chicago economist tracking AI automation and its labor market impact, initially found the prospect terrifying
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. His research, which appears in top journals and his widely-read Substack "Ghosts of Electricity," explores doomsday scenarios where AI job displacement leads to mass unemployment, collapsing demand, and economic contraction. Morgan Stanley recently recommended investors follow Imas as a primary resource on AI and the economy2
. The Federal Reserve Bank of New York found that 2025 ended with the highest unemployment rate for recent college graduates in years, while Goldman Sachs estimates about 7 percent of workers will be displaced by AI4
.OpenAI predicts 18 percent of jobs will soon be automated, while Anthropic's Dario Amodei told Axios that AI could "wipe out nearly half of all entry-level white-collar jobs"
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. An MIT report suggested AI will achieve 80 percent success rates on most tasks by 20294
. These projections have shaken the longstanding economic orthodoxy that technology always creates more jobs than it destroys. Larry Summers and other prominent economists are now questioning whether this time might be different3
.After months of analysis, Imas found a reason for cautious optimism in an unexpected place: Starbucks
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. The $112 billion company recently reversed years of automation under CEO Brian Niccol, bringing back handwritten notes on cups, ceramic mugs, and comfortable seating. More baristas are being hired because customers value human interaction over efficiency. Imas argues this illustrates structural change theory—as AI makes commodity production cheaper, human presence, social connection, and provenance become scarcer and therefore more economically valuable2
.The analogy to agriculture offers perspective: around 1900, 40 percent of American workers farmed; today it's under 2 percent. People didn't stop eating—they reallocated labor toward manufacturing and services as productivity rose
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. Whether the same transformation can absorb workers displaced by AI remains uncertain. IBM's Watson demonstrated in 2014 that it could outperform humans at sophisticated cognitive tasks, and today's version is 240 percent faster3
. Google's autonomous vehicles have driven hundreds of thousands of miles with minimal accidents. Computers now excel at screening legal documents and detecting human emotion3
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Despite the mounting evidence, policy makers have offered few concrete proposals to address the impact on the workforce. OpenAI floated a "New Deal" for workers including a 32-hour workweek and public wealth fund, while Anthropic suggested the problem might require an entirely new tax code with duties levied against AI companies
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. Yet Congress has been largely silent even as 71 percent of workers in one poll say they fear displacement from this technology4
.Pro-AI PACs like Leading the Future are already pouring millions into midterm elections
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. Political observers suggest the 2028 election will likely center on AI's societal shift, similar to how COVID shaped 2020. Some Democrats privately acknowledge that proposing sweeping reforms while Republicans control government seems futile, while others worry about massive campaign spending against them. There's also tension around global competition—China and other countries are advancing AI regardless of U.S. policy4
. For now, professionals like Kozak continue their dual existence: helping people by day, training their digital replacements by night.Summarized by
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